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).
The circumstances of supplying chassis drawings to an American company, exploiting a contract loophole and outlining precautions taken.
| Identifier | ExFiles\Box 19\3\ Scan081 | |
| Date | 28th June 1929 | |
| HS{Lord Ernest Hives - Chair} X7772 To WEP. From Bg. Copy to BY.{R.W. Bailey - Chief Engineer} Hs.{Lord Ernest Hives - Chair} re RRAI. Sg{Arthur F. Sidgreaves - MD}10/E28.6.29 Referring to the cable from the American Company, agreeing to purchase the left-handed drawings from us, I have written to BY asking him to have the necessary action taken, but as you were away at the time that we hold the Board on the 2nd May, I think it will be helpful if I just explain the position which existed at that date. When the American Company turned down the pro-position to purchase chassis from us, they officially requested us to supply them with the drawings of the chassis in order to enable them to produce it in America. I think it is pretty sure that they expected to receive the left-handed drawings but we took the precaution of reading the original American contract word for word and we discovered that there was wording to the effect that we had to supply them free with copies of all drawings of articles which we had passed for/production. This gave us the necessary loophole so we sent them the drawings for the right-hand chassis in accordance with their official request, and it was made very clear at the Board that it was only because we had not passed the lefthanded chassis for production that we did not also have to give them the drawings for the left-handed chassis. At the same time Mr.Royce was very anxious that they should not left-hand the chassis themselves but should do so to our drawings, and we, therefore, offered to sell the drawings to them, and this really is what they have now agreed to. In offering to supply them with the drawings a letter was written, drafted by Mr.Claremont, making it clear that in selling them the drawings they agreed not to sell any chassis made to them with or without modifications unless and until a chassis had been tested in the usual way, of which they are well aware, sent over to England and passed by our experts as satisfactory. This, I think, makes it clear that precautions have been taken to safeguard our interests. | ||