WILL OPEN ITS BOOKS

Taranaki Daily News, 12 July 1935, Page 7

WILL OPEN ITS BOOKS

ARMAMENT FIRM’S OFFER. AN INVESTIGATION WELCOMED. A defence of the largest British armament firm and an offer to let the Royal Commission which is now investigating the British arms traffic “see any papers they like” were two outstanding features of Vickers’ annual general meeting recently, says the Christian Science Monitor. “We welcome the Governments inquiry,” the chairman, General Sir Herbert Lawrence, told the shareholders, “as it should provide an opportunity to dispel misconceptions which exist regard-, ing the conduct of armament firms. At the American inquiry,” the General contended, “ex parte statements have been allowed, unsupported by evidence, which are totally untrue, and extracts from personal letters have been construed as implying an interpretation for which there is no substance in fact.” “The armament firms in Great Britain,” Sir Herbert continued, “carry on a legitimate, business under strict control by Government departments. As the shareholders know, the profits during the past fifteen years have been meagre, yielding but a small return on the heavy capital outlay on the shops and plant which it is necessary to maintain in case of a national emergency.” According to one of the shareholders present, the average return on the company’s £1 ordinary shares for the period 1913 to 1926 was 62 per cent. The suggestion that because Vickers was engaged on the production of the means of defence and of tlie equipment required by the British Navy, Army, and Air Force, its directors “desire to foster war,” was characterised by the chairman as being “as unture as it is unjust.” “Your company,” the General exclaimed, “does not seek to bring any influence to bear to increase the demand for armaments in this or any other country.” SOME QUESTIONS. Major J. E. Marston, a shareholder who was awarded the D. 5.0., M.C., and Croix de Guerre during the World War, asked for information regarding Vickers connection with foreign armament firms. “I am an ex-regular soldier, like our chairman, who served in Gallipoli,” he said. “You must know that our men were killed by guns and shells manufactured by the company over which he now presides. I should like a definite assurance that armaments made in this country are not sold to possible future enemies of this country. We do not want a repetition of the tragedy of Gallipoli,” he added. Was it true, he asked, that Vickers had a factory in Turkey? And was it true, as had been stated at the American arms inquiry, that Vickers had taken a leading part in starting the Chaco War? ' Another shareholder, Mr. McKinnon Wood, asked what proportions of Vickers products were home armaments, foreign armaments, and commercial respectively. Mrs. G. E. C. Catlin, better known as Miss Vera Brittain, the novelist, asked that the company’s files and orders should be made available for the inspection of the British Armaments Commission in order to “dispel doubts, created by the American inquiry.” In reply to all these questions, Sir Herbert Lawrence said that a very small proportion of the company’s armaments were for export. Vickers had no factory in Turkey to whom they had only sold a few aeroplanes and tanks. Nothing was being sold to Germany, and moreover, nothing could be sold “without the closest scrutiny of the Government.” COMMERCIAL WORK. Sir Herbert also declared that it was impossible to “say off-hand what was tlie proportion of commercial to armament production.” At Sheffield he said it was roughly 70 to 30, while at Barrow and Newcastle, combined, it might be approximately 55 to 45. He asked shareholders not to press for information which might come before the Royal Commission investigating the arms traffic. “They can see any papers they like,” the General concluded. Terminating the meeting with a vote of thanks to the chairman, the Earl of Dudley said, “A number of people do not realise this is a business and not a Government department or a philanthropic institution.” Vickers’ net profits for the past year amounted to £613,261 —an increase of nearly £70,000 over 1933. An increased dividend of 6 per cent, on the ordinary share capital was declared. To-day,

Vickers-Armstrong works and subsidiary companies have 30,200 employees, compared with 24,600 in January, 1934. In regard to Vickers (Aviation), the chairman disclosed that this year the company would have at least four entirely new types of aircraft for submission to the British Air Ministry, “including a very fast new fighter and a greatly improved bomber.” “Orders on hand are satisfactory,” he declared, “and your board are considering the possibility of further development of this branch of your company’s activities.” Another subsidiary, Thames Ammunition Works, Limited, too, had had a satisfactory year, and an increased dividend was declared. The Royal Commission on the private manufacture of and trade in arms is in session. It is presided over by Sir John Eldon Bankes, ex-Lord Justice of Appeal. Its members are Sir Thomas Allen, Dame Rachel Crowdy, Sir Philip Gibbs, Professor H. C. Gutteridge, Sir Kenneth Lee, and Mr. J. A. Spender. Its terms of reference are wide. It is to ascertain whether the substitution of State for private manufacture of arms is feasible, either by the United Kingdom alone or in conjunction with other countries. It is to report whether any steps can usefully be taken to remove or reduce the evils connected with the private arms trade.

It is to see whether any, and if so what, revision is desirable in present arrangements relative to the control of the export of arms.

The Commission commenced its sittings in private on February 28. • It is to hold public meetings later.