organization. The same question arises as to these last two mentioned types of devices. However, please note that up to the present, there has only been talk; no orders have been given and no deal consummated."

Again, under date of August 20 from Paris he writes:

"Eugene has come and gone. The result of his visit is that CW's company both in Paris and in Blois and also Jojo's two factories in Paris are more or less taken under the wing of Bosch, for a Commissaire from the Bosch organization has been more or less instructed to keep an eye on these two companies. In the event that any difficulties arise, such as an attempt to remove machinery, etc., the companies are to immediately contact said Commissaire.

"CW was asked to quote on starters and on certain gears therefor and Jojo on solenoids and motors for said starters. I would estimate that the quantity in question is somewhere around 5,000 of each to be filled over a period of 4 or 5 months. This quantity is merely tentative and note that no orders have been passed or is there any definite indication that orders will be given. The situation is therefore not much further advanced than it was before Eugene's visit. There has been talk and that is all. Eugene is expected back in about a month.

"Various discussions were had between Eugene and Jojo and CW, but BB did not see Eugene, since the former was not in Paris. Eugene exhibited no interest whatsoever in BB's company. There was some talk with CW of de-icing equipment and compressors to be used on truck brakes, but this subject was merely brooched.

"Eugene indicated that there is to be built in Italy, presumably by Aircoli, which I gather is a company in which participate both Marelli and Bosch (Injects), starters for trucks, which starters are to be identical with those now manu factured in Germany by Bosch, and on which Bosch pays a royalty to the United States. Eugene states that these starters are covered by one German patent, for which, however, he states there is not a corresponding Italian patent. Furthermore, he states that Bosch does no have the control in Italy and, therefore, no royalties are to be paid to America on the Italian manufacture. I disagree with Eugene on general principles and also insisted that the subject matter was protected by Italian patents, but probably not in a patent corresponding in all respects to the German patent to which he refers. I do not have any indication of the German patent in question, but will try to look it up in Bordeaux. You are perhaps better informed in the United States than is this office, and may also be able to run down this Italian matter. Eugene did not have full information with him, but has promised to bring it with him the next time he comes.

“Jojo is exceedingly disappointed with the results of Eugene's visit, particularly since copies of three cables transmitted to him by F. A. S.' letter of June 9, 1940 have bolstered up his hopes. CW is not disappointed, because he was very skeptical from the outset.

"It is now impossible to communicate either by mail or by telephone or telegraph with the nonoccupied zone or with countries foreign to France. You can appreciate that this situation from our point of view is intolerable and we cannot expect to function if such a condition lasts."

Under date of August 25 from Megecoste he reports:

"Eugene has come and gone although nothing in the way of business of a very concrete nature has as yet developed, some ends were nevertheless served by his help. He has more or less taken under his protection Jojo's and CW's companies and the latter was able to stop some removal of machines therefrom for transport towards the North. He has requested us to communicate with him immediately should any difficulties present themselves with our fair-haired friends and he will do his utmost to obtain satisfaction for us, if it is possible to do so. Without being specific, I feel that a communication of a very hearty and cordial nature should be transmitted to him, thanking him for his intervention.

"He has asked CW for quotations on starters and de-icing equipment, which were provided. These was some talk of purchasing compressors but no quotation was asked. Three compressors were to be destined for power brakes manufactured by Eugene's company. He took with him samples of starters, compressors, air bottles and various other devices for examination.

"Within the last few days, CW's company, outside Paris, has obtained an order amounting to about Frs. 1,200,000 for devices, the specific purpose of which is not yet clear. Manufacture has already started on these devices but they are not for Eugene's company; they are, nevertheless for our Northern friends.

"The Paris factory of CW is not operating and the manufacture just mentioned is to take place outside Paris. At the present time, CW's designers are endeavor

ing to evolve the design of an engine for motorcycle and are likewise working on a pump for vehicles.

"Jojo was requested by Eugene to quote on solenoids and motors for the starters mentioned in connection with CW's company. These quotations have been furnished. Please bear in mind, however, that Eugene has placed no orders whatsoever as yet. Jojo's company has a small force of about 50 working in Paris and some 350 in the provinces, with which factories you are familiar. These people are working on orders for French manufacturers.

"I think it should be here indicated that the contacts between the various directors, CW, Jojo, BB, HP, CB, and Eugene were very cordial. The same is true with respect to the various commissaires who, as I have indicated are supervising the plants. Some of the commissaires have indicated to me that they find BB's company particularly well organized and in a position to give them the information they wish on the very shortest notice. The situation is such that we here feel that the only thing to do is to cooperate since there is, as a matter of fact, no other alternative.". F. A. STANTON.

FAS; dk

EXHIBITS Nos. 631 AND 632

[Memorandum from E. O'Hanrahan, French representative of Bendix, Paris, to Mr. Gache, official of one of Bendix's French subsidiaries, dated September 6, 1940]

MEMORANDUM FOR MR. GACHE

PARIS, September 6, 1940.

Eugene arrived on Monday the 1st and is returning north today. During the course of his presence here, himself and one of his men were made Commissaires officially for CW's companies and the same will be done shortly for Jojo's companies.

I should have liked to have obtained the same result for BB's company, but there is already a Commissaire there. I believe, however, that we have arranged so that one of Eugene's men will keep close contact with BB's company. We have heretofore indicated to you in a previous memorandum who the Commissaire of BB's company is.

Eugene has asked for bids of 1,000 deicer equipments from CW's company, and will probably give him orders for tools and some special equipment, for which one of CW's factories is particularly well suited, due to the machinery therein. CW's company has some work under way for three foreign countries. It is not clear at yet whether authorization will be granted to deliver the orders now under way for the three foreign countries concerned, but it is probable that the authorization will be accorded, since a great portion of the orders is in complete form, and therefore does not require the using up of further stock to complete them. Furthermore, CWs company has an order for some 60 shock absorbers per month for some of our other northern companies.

Jojo's company will receive an order for 2,000 solenoids from Eugenes' organization.

As far as BB's company is concerned, no order has been received, but as far as the cutting of gears is concerned, it has been made clear that this organization is eminently fitted for this work, and Eugene will try to find work for it.

There is a question at the present time of 5,000 sets of gears for starters. Bids will most probably be requested on this order from both CW and BB. Eugene is aware of the fact that BB's company originally produced this starter and has always manufactured gears and parts for CW.

There is one thing on which both Eugene and I agree and this has been made very clear to CW, and it is that any orders passed are to be completely filled within the organization, and that any attempts of any of the three companies in the organization to go outside thereof for the purpose of obtaining the cutting of gears, etc., is to be discountenanced.

I believe that we have definitely shown to Eugene that we are doing everything possible to cooperate with him. I think it will be most fitting that letter be written to him thanking him most warmly for the efforts that he has made in behalf of the three companies.

Due to the fact that Eugene already has an electrical company here, our greatest difficulty seems to be finding something for Jojo, but Eugene assures me that he will do everything he can to find work for this organization. He has taken with him many samples of Jojo's production in an effort to see what business he can give him.

As far as Jojo is concerned, his cooperation with Eugene has been 100 percent and the same can be said as hereinbefore indicated for all other parties involved.

EXHIBIT No. 633

[Letter from H. P. Kennedy, Morgan & Cie, France, to Charles Marcus, vice president, Bendix Aviation Corporation, New York, N. Y., dated February 27, 1941]

CHARLES MARCUS, Esq.,

MORGAN & CIE,

Chatel-Guyon (Puy-de-Dôme), February 27, 1941.

Vice President, Bendix Aviation Corporation,

New York City, N. Y.

DEAR CHARLIE: Having escaped from Paris for a few days for the first time since last June, I have had the pleasure of visiting Issoire, Brassac, and Mégecoste, so I thought you might like an outsider's and unprofessional view of what is going on; also my impressions about what your various companies have been able to accomplish since the nightmare of last June.

As you will well realize, France has been turned inside out economically and financially. War industries and war orders stopped overnight. In addition, every factory was out of gear, having tried to move their plants around France with 3 or 4 days' notice. Perhaps the industries most seriously hit were your industries, aviation and automobile. The aviation industry as such no longer exists and the automobile industry is down to bedrock, as practically no cars can circulate, due to lack of gasoline and tires. The accumulation of these misfortunes and the problems of getting started again were enough to break most men. But not so with Titin and Amblard. They took their coats off and got down to work. I sincerely regret you cannot see what they have accomplished. At Issoire and Brassac, Ducellier now has two well-equipped factories. While they are not yet working at capacity, Amblard is getting ready to take care of peacetime business. Also, he has been particularly active in creating new business. In addition to his old electrical equipment business, he has started bicycle generators and lamps, and is producing over 100,000 per month. He has bought In partnership with Peugeot Frères a factory to make bicycle chains. The partnership agreement also stated that he should be their sole supplier of automobile electrical equipment. In addition, a new contract with Robert Bosch, about which he has written you, will be a big advantage to him. It well establishes him in the field of such accessories as windshield wipers, horns, and direction indicators. This gives work to Issoire and Brassac. Also his Paris factories are working for the occupied area and are steadily increasing their business.

So you can see he is not letting the grass grow under his feet. The financial situation of the company is excellent, so as long as Amblard is there, I have every confidence in its future.

As for Bendix, I visited the plant which they have started at Mégecoste. I can well imagine how Titin's heart must have sunk on first seeing the factory they have bought, because it was in ruins, not having been used for about 15 years. But he dug in and without great expense has managed to arrange a shop installed with machines and is now turning out cables. He will soon be making brake drums. I don't see how he has done it myself, but he has. It was a necessity and it permits him to keep his customers in the free zone. If he had not done it, the automobile manufacturers would have started making their own brake equipment and most likely he would have lost their business for good. At Clichy, the plant is operating on a reduced scale, but now orders are beginning to come, and I think their volume will steadily increase. Both Titin and Amblard do a lot of traveling between Paris and Brassac, keeping in constant touch with both places. As you know so well the sound financial policy of Titin, it is unnecessary to state that Bendix S. A. is in an excellent financial condition.

As for Air Equipment, their business was completely stopped and there was no hope of new orders. Thanks to Ned O'Hannoran's relations with your licensees in Germany, he has been able to get orders for Waseige. So he is in production

84949-44-pt. 16- -29

again and I think will be able to make both ends meet until such time as the horizon clears and one can better judge what the future has in store for the company.

As as soon as it was possible, Titin adopted the wise policy of remitting all funds possible to you in the United States. In this our office established in the free zone has been especially helpful and I am sure you are gratified by the results. Please tell Mr. Palmer not to judge us too harshly because we have substantially increased our commission for getting exchange authorizations. This increase is temporary, we hope, but we are forced to do it. because we have to keep an expensive organization here, in order to develop our relations with the exchange authorities. We have been able to do this to such an extent that I am sure we are able to render better service than any other bank. Mr. Palmer should consider our commission more like a lawyer's fee than just a routine commission. I think I can safely state that if our relations with the exchange authorities were not what they are, you could never have received the remittances you have. We shall be the first to welcome a return to a more normal state. I hope this hurried "tour d'horizon" has been a little helpful. There is one thing certain. If for any reason, communications between the United States and France are cut off, you may rest assured that your business is in safe and loyal hands and that your representatives in France will do everything in their power to protect your interests.

Most of the Americans who are still in France, and there are very few, are staying because we feel that there is still work to be done and that France will come back again and come back strong. We naturally watch the trend of events and we are unanimous in hoping that the United States will not be drawn into the conflict. I see nothing for them to gain. That they help England is only natural, but I believe they can help much more by staying out. What worries me is what the world is going to be after this thing is all over.

I read with interest your last letter to Titin telling him about your business and the tremendous progress you have made. It is so great that when we start to talk to you about our volume and results in francs, it must sound like peanuts. I sincerely hope it will not be too long before we again have the pleasure of seeing you. Please give my best regards to Mr. Palmer and Frank Stanton. With my best to yourself, I am,

Sincerely yours,

HPK/MK.

HORTON KENNEDY.

SUBMITTED BY JAMES B. ADAMS, DEPARTMENT OF JUSTICE, SEPTEMBER 13, 1944, ON GERMAN INFLUENCE IN THE AMERICAN FUEL INJECTION INDUSTRY

EXHIBIT No. 634

[Letter from E. C. Rassbach, director, Robert Bosch A. G., Stuttgart, Germany, to A. T. Murray, United American Bosch Corporation, dated November 15, 1933]

Ihr Zeichen: ATM: AG

Ihre Nachricht vom : 31st Oct. 1933

Unser Zeichen: VKH Rh/Cr.

Mr. A. T. MURRAY,

ROBERT BOSCH A. G. STUTTGART,
Stuttgart, November 15, 1933.

United-American Bosch Corporation, Springfield, Mass., U. S. A.

DEAR MR. MURRAY: 1 found your letter of the 30th of last month when I returned from London and delayed replying until I received your cablegram reminding me of my delinquency. In consequence, I wired you that I would appreciate arranging an appointment, leaving, however, an opening for canceling it if other things should turn up.

A fact to the matter is that, while I wish to keep up contact with Mr. Quintavalle, I have very little hopes of a successful conclusion of the deal, because our points of view are radically different. The Marelli interests, so far, have proposed a form of cooperation which would inevitably lead to our complete disappearance from the Italian market within a short space of time, as it would have been entirely in their option whether they manufacture given products and we were then automatically excluded from exporting these products to Italy. Our own view is that, in order to make a success of the venture, the

full administrative control must rest with us. With regard to the profits from the enterprise, I see no difficulty in finding a solution, but when it comes to the question who is going to have the final decision in running the place, there is only one answer. I do not know whether Marelli can be induced to split up their business in such a way that they retain the wireless and pass control A furof the remainder over to us, retaining a purely financial interest or not. ther complication is the fact that Fiat owe a large share, most probably half the capital of Marelli, so that they must be dragged into the deal in some fashion or other.

Mr. Quintavalle's statement is perhaps not quite correct, insofar as our representative at Milan definitely told them on our behalf at the time that the two points of view were irreconcilable and that, consequently, we were not making any further moves, but it really does not matter very much in my opinion whether we appear to be making an advance or not, although, of course, Marelli must not get the idea that we are keen on this deal, because as a matter of fact we have given up Italy as a nearly hopeless case and have already resigned ourselves to a slow diminution of the Italian market. I will try to find out further means of approach before December and assume that it will be possible to cancel the engagement, if necessary, provided that notice can be given, say before Christmas. In the meanwhile, I would ask you to arrange an interview either for Friday the 29th of December or, preferable, for Thursday the 21st or Friday the 22d December, if you should arrive in Paris on the 21st, as I am rather inclined to think. You will probably be able to ascertain definitely from the shipping people when you will be in Paris, so that the possibility of a meeting on the 22d could be decided upon, and let me know by cable what your arrangements

are.

Yours very sincerely,

EXHIBIT No. 635

E. C. RASSBACH.

[Letter from E. C. Rassbach, director, Robert Bosch A. G., Stuttgart, Germany, to Charles Marcus, Bendix Aviation Corporation, c/o Mr. Francis A. Stanton, Paris, dated October 17. 1933]

Duplicate for Mr. Julius Wild.

Mr. CHARLES MARCUS,

Care of Francis A. Stanton,

Paris.

OCTOBER 17, 1933.

MY DEAR MARCUS: I confirm the telephonic conversation with you of last Friday night, according to which Lucas and ourselves are agreeable to a 32percent license on inertia starters for purposes other than starting aviation engines, as far as British territory is concerned, and we are agreeable to 32percent license as far as our territory is concerned. Detailed arrangements for this extension of license will, as I understood from you, be made by Stanton, and I will be glad to hold myself available for the necessary discussions at any time, provided that Stanton give me due notice.

As far as we alone are concerned, I see one snag ahead of us, and that is in Italy. From the point of view of licensing arrangements, Marelli and ourselves are in an identical position. On the other hand, we are using certain elements in our structure which are entirely our own invention and which are protected by sound patents. These elements are the reason that our starter works on Diesel engines, while other inertia starters have so far failed to perform satisfactorily. As the situation exists under the agreements, the Italian customer cannot get inertia starters from us because of the agreement, and he cannot get them from Marelli because Marelli cannot build them, at least for the time being. Marelli could build them if we showed him how and gave him the use of our patents. For this, however, we naturally required a compensation, which I can only see in the right to export to Italy.

I am inclined to think that this whole complex can be cleared up very much more easily by negotiations between Marelli and ourselves, of which I would undertake to keep you or Stanton informed, than if we try a triangular deal, and I would ask you to give your consent to such negotiations.