‘sau bax a pivioano dec of bor Ste have put the brake on armament orders from teig the resumption of eral diplomatic relations ens ave me that ths gerace mesos tae lrdenenmure go oventnGl next yene, Tis ta rt dl sei etn Aube (she Peedi Rencienrscaiaie] tack ie 0 in “The indications are now that he ought to be there ip Wh ence tin private arcangee jhave to be made quite soon.” Tie Sour Asenscay Way | Belore proceeding to an examination of the business relations Heswcen Vike a Hc ost ts ate ues ‘the Vickers chet fully shared his American colleague's belie! ee ‘world should be given fe rein in a sad c for armaments, Two passages fom letters’ written ‘Ghatles Craven to Met. ¥. Spear Between October, 1932 ‘and January, 1933, wil suice — S)s hn he poston wil tum out 2 follows: (2) We Stall setce a fem contract (fom Whe Admiralty) tr one faba abit he third eck in Nove) fecsve alee wling ws thatthe Admiralty accep oar Brice fo the second submarine onthe dsnet understands that thoy can lave the right to tance the tuo one without any payment All tha you and 1 ain bythe rans ‘And, in a second letter — sting Uiither words, they [the Admiralty) will have the sight to withdraw their oer scan hip it 1 Nye Hearings Pare, exhib 9 and 2p, (Or tlies) “give us THs DAY OUR LiTTLE WAR” 69 Geneva or any other teublesome crganization upsets the large submarine.” ‘The insines relations beeneen. Vickers Armstrong and the Blecrie Bost Co, merit more than the summary treatment (0 which the scope ofthis book Limits us, fr they present a ist- Cas illstration ofthe proBtabsring, teritory-diiding technique outlined in Chapter 1 While Vickers manufacture armaments of all descriptions, the activites of Blectic Boat are largely confined to the bulding of submarines. All agreements between the two companies were {his resected tthe bullding of and trading in dhe vesele ‘One ofthe pioneers of the submarine, the Blectic Boat Co., took aly steps to have fe basie patents protected in every country of the world. These patents covered certain inventions indispensable to the equipment of the modern submarine, and when the directors of Vickers deced to branch ont into the ‘constriction ofthis particular type of erate they were obliged to ture tthe American company for permision to ute is patents Eetre Boat sruck hard bargain. Te granted Vickers licence to use its patents on the condition: (3) that received 4o% ofall tet profs earned from submarines builtin. Vieker” Brith shipyards, and (2) that it reczived 50% ofall net pros earned From boats built, under the Viekers licence, in any other Britah 9 Continental yards after deduction ofthe prof lloned to the building fern, During the Nye bearings it was revealed that over the past twenty year the American company had received an average “rake-of” of (26,467 on every boat bull by Vicker for the account ofthe British Government. Tt sa testimony to the close co-operation between Vickers and the Admiralty that, on the day following the disclosure of this agreement by the Nye Committe (September 4, 1934), Si Charts Graven vas able to antounee in London that dhe British Government fly approved the arrangement between is come pany and Electric Boat regarding submarine constriction and that the agreement “had been draven up five years ago with the full knowledge of the Brith Govemnmene™ This may be