Senator  Clark  (reading)  :

On  September  21st  we  received  a  letter  from  the  Sociedad  Espanola,  of
which  the  enclosed  is  a  translation.  You  will  note  that  nothing  is  said  about
the  five  percent  of  the  contract  price  heretofore  remitted  to  us  and  by  u»
transmitted  to  you,  and  that  they  advise  of  a  payment  to  us  of  one  and  one-
half  percent  instead  of  three  and  one-half  percent.  According  to  our  contract,
the  one  and  one-half  was  to  have  been  paid  to  us  if  they  should  build  sub-
marine boats  not  of  our  design  or  related  to  any  advice  or  information  we
might  give  in  relation  to  the  construction  of  the  boat.  As  a  matter  of  fact,
we  have  supplied  at  the  request  of  Sociedad,  valuable  information  and  assist-
ance, and  tiieir  plans  were  modified  in  a  number  of  respects  in  accordance
with  our  advice.  On  November  25,  1932  Captain  Fuster  wrote  us  that  "  we
shall  proceed  in  accordance  with  your  good  selves  and  Messrs.  Vickers-Arm-
strong  during  the  construction  of  same."  In  addition,  our  technical  people
advise  that  undoubtedly  the  Sociedad  necessarily  are  making  use  of  seven  of
the  Spanish  patents  of  the  Electric  Boat  Company  relating  to  submarine-boat
construction.  Vv'e  have  communicated  with  Commander  Craven  in  regard  to
the  subject  and  he  cabled  us  on  October  6th  '"After  meeting  Spanish  directors
am  convinced  that  best  advice  I  can  give  you  is  to  accept  their  offer  regarding
submarine  royalty."

That  was  when  Craven  was  both  an  officer  of  Vickers  and  an
officer  of  the  Sociedad,  was  it  not?
Mr.  Spear.  Yes,  sir.
