oe Mr. James P. & Hume January St. Louis and that inasinuch as we knew get it ready and send it on. Roughly, as follows: 6, 1944 what they required we should my ideas on the subject are An audit report will be complete and ready covering the parent company the latter part of this month, or the forepart of next month. The Bar B Company and the Browning Arms Company wili also have financial statements ready. In this connection I am writing to Mr. Benner at St. Louis asking that he expedite the audit of the Browning Arms Company, as it seems to me we could have that company renegotiated at the same time as the parent. After I have all of the data prepared here could come on to Chicago, spend a day or two with you going over the aspects of the 1943 case, which will be quite different from those encountered in 1942, and allowing you time to prepare anything you might want to covering the legal phases of the case. We would also want to bring ourselves up-to-date on any changes in the law, if it is enacted at that time, as it seems to me that one of the reasons we were successful in St. Louis was the fact that the people there really appreciated our being up-to-date. You will recalithat we had a copy f H.R. 3687 two days before they had it in St. Louis. Have informally discussed with Mr. Browning the question of reducing royalties on the 37 mm. and agree with you that if we go into a hearing with the information that a reduction has been made it will just about secure a clearance for the year 1943. On the other hand, possibly in May of this year, or at the time the patents expire, Colt's will probably want a conference with us. It would be well to have our 1943 renegotiation behind us before this conference. At present it does not seem that there could be any disadvantage in reducing royalties in so far as Colt's are concerned and it all seems to go the other way, that is, to our advantage. Your comments regarding the buying of Colt's capacity and other suggestions in that connection are quite interesting and will discuss them with Mr. Browning. reduction go into The first thing to be decided is whether or not the royalty on the 37 mm. should be immediately made in order that we may the St. Louis hearing and be able to teil them about it. Next, is to prepare our data, have our hearing and get a clearance for 193. After that a conference with Colt's may be in order as it seems to me there are @ great many things which should be taken up with them and also that some good straight talking should be indulged in. With kindest personal Very GMB: 3p regards, truly yours,