“reconcile witha passage in letter seat by Craven to Electric ‘Boat on July 3o, 1992, 52 Whe he wrote: May suggest that even in code i i Bester not to mention Say name of ships, ag Tam rather aad that such teleyrams Gght get into thehandsof our clients, and it would be awkward Hshey aed me about oar agreement with you. Tam sire you ‘ill appreciate what I inean.” Searon Now “Is the conclusion to be drawn from that Hatement that dhe Bids Adiirlty had no knowledge oft ‘agreement between Vickers and you?” ‘Min Ganen (Presiden of lac Boat)» I thik that is what AM. Graven means, that the British Admiralty might raise some objection to an Ameriean concern receiving any money ‘on acoont of sine with the British Goverament To thet of ur nowiege, the intespretation pit upon the pas- sageby Senator Nye hae never been publiciychallenged by Craven *The agrertient for the division f sales territory wat ae clearly @efinad 28 the profitsharing agreement and showed the same Aepiles rojard fr the “sacred principles of private competition fand fice. enterrise, The territory reserved exclusively for Vickers yas Great Britain and the Empite, “including self= governing teritorcs such as Canada, Ireland, Australia and Tada” (42). Exclusively reserved for Electric ‘Boat were the United States, “colonies and dependences thereof, Republic of (Guba and all communities and counties governed by or under the suversinty of the United Steer". Both companies were lee fo/act “in all other counties ofthe world”™with the exception ff Spain, Japan, France, Italy, Belgium, Holland, Norway, Finland, Brel, Argening and Peru and all dependencies and colonies of thete countries, The lac-named tetritris, where soles were subject to specif profitsharing agreements between the two companies, comprised practically every country ote Brith and American suzerainty srbich was eapable of buying, 5 Noe Hennes Bart iit fntereted in buying, or permitted to buy submarines. Tn certain Of ihize countries Elecsic Boat had licenrece or was about to Shlld submarines on its own secount and didnot want British competition. Inthe cesnainder Vickers had long-established [grements with doinestic armament concern, such se Mitsubishi Gf Japan, or owned large shareholdings in loral subsidiary com- panies, such as the Sociedad Expafoia. Construccion Naval of Spain, Pat the datc on which ve find Spear complaining to Sir Charles Graven of the State Department's “pernicious” interference in PeniChile relations, Vielers and Plectre Boat had been wooing together jaa world-wide contrel of basic submarine Usdgns and patents for quarter of a century® This system of tmpurtnership produced advantages other chan the obvious ones faeren in any seheme for profitsharing, prce-viagiag and the tliminaton of independent outside compesition. For example, fe enabled the two companies to take sides in the Peru-Clile Gaputes Vickers sales to Chile -simolated. counterbalancing fers by Peru. ‘Thete order were fullled by the Flectsic Bost Gos, which vas thos able to pocket the profits from the Peruvian fers pls the usual royalty on Vickers sales to Chile To gain a clear pictare of this submarine cartels activites fn South America itis necesary to go back to 1920, when the Wathington representative of Electr Bost reported this tfiee that Advairal Niblack, Chief of Naval Tatlligence of the US. Navy, had told im that “ie whole balance of power has been destroyed by Ch getting six submarines and two Warship from England, and that it has caused a good deal of uneasines on the part of the Argentine, wile Prt te ably eps ‘The directoes of Electric Boat desided forthwith that honour, chivalry end common deceney compelled them to 0 tthe ald of Peru, ‘The fet thatthe Peruvian President thea i ofice showed litle inclination to throw his country into a naval race which could only end’ in war of national bankrptey was a minor Sitting Retaneke