SUPPLY OF AMMUNITION.

New Zealand Herald, Volume LII, Issue 15964, 8 July 1915, Page 9

SUPPLY OF AMMUNITION.

NEW CONTRACT ARRANGED. FIFTEEN YEARS' TERM. [BT TELEGRAPH.—SPECIAL CORRESrOXDEXT.I Wellington, Wednesday A copt of the new contract for the supply of ammunition to the New Zealand Government which the Government has recently entered into with the Colonial Ammunition Company, Limited, of Auckland, was laid on the table of the House of Representatives to-day. The agreement was made on May 18 last, and the now contract is to last for a period of 15 years from January 1 next. The company agrees to manufacture small arms ammunition in such quantities and at such intervals as may be required, provided that it shall not be bound to maintain a (monthly supply of more than 800,000 rounds of .303 service ball ammunition and 105,000 rounds of .303 blank ammunition. The price to be paid is to be equal to the current War Office price pins the ordinary Imperial Departmental charges upon the same as packed and delivered at Woolwich, increased by a sum at the rate of 15 per cent., to cover freight, insurance, and other charges of delivery in New Zealand. In no case shall the price be less than £5 15s per 1000 rounds of ball ammunition, or less than £3 2s 6d per 1000 rounds for blank ammunition. The minimum quantity which the Government shall purchase annually from the company shall be 9,600,000 rounds of ball and 1.250.000 rounds of blank ammunition. All duty paid by the company on machinery and stores imported for the manufacture of ammunition shall be refunded. It is provided that on giving six months' notice the Government may at any time during the term of the contract purchase the works, plant, and stock-in-trade of the company at a price to be fixed by arbitration.