Viewing page 8 of 26

This transcription has been completed. Contact us with corrections.

rights for the duration of the war insofar as was concerned the construction of aircraft and aircraft accessories pertaining to the allied program.  He reminded the British of the much needed raw material that America could supply and of the potential new engine (later known as the Liberty Engine) which America was even then designing.  We found Sir William Wier a very broad minded man.  He placed "Victory" ahead of American dollars.  He saw the advisability and logic of Bolling's statement that the United States should not be asked to pay an entrance fee in the form of royalties in order to join the war and stated that he thought the principle of mutual exchange of manufacturing rights could be arranged with all England's manufacturers except Rolls Royce.

The Rolls Royce Company had until then held to an attitude which seemed to us to be distinctly arbitrary. They would tell the Americans nothing, would provide us with no assistance, and in fact, would do nothing to help u build the Rolls Royce aeronautical engine unless sufficient royalties were to be paid them as production took place. All arguments, to the effect that what America was striving to do was to help win the war, were in vain.  They contended that they wanted their royalties or they would not assist America even though it was to be assumed that they had the then best existing airplane engine and that America's construction of this engine might help to shorten the war.


Since the British Air Board was, of itself, unable to put into effect the principle of a mutual exchange of manufacturing rights for the duration of war, Bolling, assisted and advised by our Ambassador, Mr. Page, and Sir William Wier, carried the matter on July 1, 1917, to David Lloyd George, then wartime Prime Minister of England.  Lloyd George said that America and England could talk about royalties after the fighting was over, accepted the principle of a mutual exchange of manufacturing rights for the duration of the war, and instructed Sir William Wier to ship to the United States such samples of aeronautical material and information as we might request.  There was one exception to the acceptance of this principle, namely, the Rolls Royce engine.  The British government at this date did not feel able to demand of the Rolls Royce company that they conform to the principle of no royalty and so advised the Bolling mission, which in turn was forced to advise the United States that any arrangement with the Rolls Royce Company would have to be as a side issue and not come under this main understanding with England.

-8-