Fate of Rolls engine still not decided

Press, Volume CXI, Issue 32566, 27 March 1971, Page 19

Fate of Rolls engine still not decided

(N.Z.P.A.-Reuter— Copyright) WASHINGTON, March 26. The British Minister of Defence (Lord Carrington) left Washington for London last night to report to the Cabinet about his negotiations with the Lockheed Aircraft Corporation on the Rolls-Royce R. 8.211 engine.

Accompanied by the At-torney-General (Sir Peter Rawlinson), Lord Carrington had spent just over 24 hours in Washington, and was believed to be taking back modified Lockheed financial proposals for sharing the increased cost of the RB2II. The two Ministers had talks with Lockheed’s chairman (Mr Daniel Haughton) and the Secretary of the Treasury (Mr John Connally) with whom the question of a possible United States Government guarantee to protect the British investment was discussed.

A considerable gap remains between the two sides on the future development of the Rolls-Royce engine for the TriStar airbus, according to reliable sources, who say that Britain removed one of the points in the dispute by offering to pay the entire s29om cost of launching the RB2II. This would cover all research and development, and the production of prototypes. The major problems remaining are the question of the new price for the engine, after the rise in costs from the original contract price, and the question of a guarantee to assure the British Government that the TriStar project would continue long enough to safeguard the British investment.

There are indications that Lockheed made a counteroffer to help to meet the increased production costs of the engine, and that Lord Carrington will report this to the British Cabinet.