File No. 800.24/53
[Enclosure]
Agreement between the American and British
Governments for the Joint Manufacture of Tanks
The Government of the United States of America and the Government
of His Britannic Majesty, being desirous of cooperating in the
use of their respective resources for the production of the war
machines known as the tanks, and having considered the joint
recommendation made to them by Lieutenant Colonel A.
G. Stern, C.M.G. and Major J. A.
Drain, U.S.R., whom they had appointed as their
Commissioners to investigate the possibilities of such joint
production, the undersigned, duly authorised to that effect by
their respective Governments, have agreed upon the following
articles:—
1. The above-mentioned Commissioners are authorised by the
respective Governments—
- (1)
- To build a factory in France, the cost of which is to
be defrayed in equal parts by the contracting
Governments. The factory shall be of sufficient capacity
to produce three hundred completed tanks per month and
capable of being extended to produce at least twelve
hundred tanks per month. The materials required for the
construction of the factory shall be obtained in France
and in England. The unskilled labour for the erection of
the factory shall be supplied by the British Government.
Skilled labour shall be supplied by the British or by
the United States Government as the Commissioners may
elect.
- (2)
- To arrange for the production of, and to produce,
fifteen hundred tanks during the year 1918, or as many
more as may be required and authorised by the respective
Governments, and to arrange for the provision of the
components for these tanks in the United States and
Great Britain substantially as follows:—
- In the United States: Engines complete, with
starter and clutch, radiator, fan and piping,
silencer, electric lighting, dynamo and battery,
propeller shaft, complete transmission, including
main gear-box, brakes, roller sprockets, gear
shifting and brake control, track links and pins,
rear track sprockets, hub and shafts, front idler
hub and shafts, track roller, track spindles and
bushings.
- In Great Britain: Bullet and bomb-proof
plates, structural members, track shoes and
rollers, guns, machine guns and mountings,
ammunition racks and ammunition.
2. The respective Governments undertake to give the necessary
priority in respect of material, labour, shipping, and other
requirements to enable the programme to be carried out in the
most expeditious manner.
[Page 562]
3. It is understood that the tanks produced by the factory are to
be allocated between the United States, France and Great Britain
according to a determination to be reached later between the
Governments of the three countries, provided that the first six
hundred tanks produced shall be allocated to the United States
Government, and provided further that the latter and the British
Government shall each take one half of the number of tanks not
taken by the French Government, unless unequal allocation
between them shall be subsequently agreed upon.
4. The price which shall be charged to the French, British and
United States Governments, should there be an unequal allocation
between the two latter, shall be five thousand pounds sterling
per tank, which price shall be subject to adjustment at the
close of the operations occurring under this agreement, and the
liquidation of all assets upon a basis of actual cost, such
actual cost to include no charge for overhead by either
Government.
5. The capital necessary to carry out this programme shall be
supplied in equal parts by the United States and British
Governments. Expenditure in France shall in the first instance
be paid by the British Government.
Materials purchased in Great Britain shall be paid for by the
British Government and those purchased in the United States of
America shall be paid for by the United States Government.
An adjustment of the accounts shall be made every six months.
6. It is further agreed that the United States Government shall
replace the steel provided by the British Government for armour
plate. The replacement shall be in the form of ship plates and
shall be made on or about the date of delivery of armour plate
to the factory, on the basis of ton per ton, the necessary
allowance for difference in value to be made in the adjustment
of the accounts.
In witness whereof the undersigned
have signed the present agreement and have affixed thereto their
seals.
Done at London in duplicate the 22nd
day of January, 1918.
[
seal]
Walter Hines Page
[
seal]
Arthur James Balfour
