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From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Letter from Armstrong Whitworth proposing a collaboration on the development and licensing of compression ignition engines.

Identifier  ExFiles\Box 133\3\  scan0150
Date  8th March 1940
  
ARMSTRONG WHITWORTH SECURITIES COMPANY LIMITED.

TELEPHONE:
VICTORIA - 2233
TELEGRAMS:
ZIGZAG SOWEST LONDON
CABLES:
ZIGZAG LONDON
WORKS:
NEWCASTLE-UPON-TYNE

THAMES HOUSE,
WESTMINSTER,
LONDON, S.W.1.

8th March, 1940.

Messrs. Rolls Royce Ltd.,
DERBY.

Dear Sirs,

With reference to the conversation which our Mr. Sammons had recently with your Mr. Hives, concerning the development of Road Transport Compression Ignition Engines and the granting of a license by our firm to your firm to manufacture these engines, we beg to enumerate below the conditions covering the development period:-

(1). Armstrong Whitworth undertake to co-operate with Rolls Royce in the development of three engines to be of 25 B.H.P. per cylinder at 2000 r.p.m., the engines to be of 3 cylinder, 4 cylinder and 6 cylinder types.

(2). The engines will be built and developed at the cost of Rolls Royce and any work carried out by Armstrongs at Rolls Royce's request will be paid for by Rolls Royce on the following formula: Material Labour plus an agreed charge for overheads, plus 10%.

(3). During the period of development Rolls Royce will pay Armstrongs a Consulting Fee of £325 per annum per engine developed, up to a maximum of £2,000.

(4). The form of license under which Road Transport engines embodying the Kadenacy System will be manufactured by Rolls Royce when it is decided to go into production, is attached hereto and will form part of these Heads of Agreement.
  
  


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