H.—l9a

2

the said ammunition and adding thereto a sum equal to seven and one-half per cent, of such landed cost. The provisions of clause 6 hereof shall apply to all small-bore ammunition supplied under this clause and tlie Governor-General shall not be obliged to pay for any such ammunition until the Company has produced a full statement showing the landed cost of same and all invoices received by the Company in connection therewith and the Company undertakes that it will purchase all such ammunition in the best market and at the most reasonable rate procurable. 3. The Governor-General shall pay to the Company for all service ammunition finally delivered under this contract a price equal to the current War Office cost meaning thereby the current price for the time being paid by His Majesty's War Office to contractors for similar ammunition in England plus the ordinary Imperial departmental charges upon the same as packed and delivered at Woolwich increased by a sum at the rate of Fifteen pounds (£ls) per centum of the aforesaid current War Office cost to cover the expense of freight insurance wharfage and general charges of delivery in New Zealand and further increased by a sum at the rate of Seven pounds ten shillings (£7 10s.) per centum to enable the Company to make a profit on the reduced supply of ammunition to the Government under these presents and again increased by the sum of One pound (£l) per one thousand rounds of service ball ammunition as part compensation for the loss by the Company of half the orders under the contract dated the fifth day of April one thousand nine hundred and twenty-two. The aforesaid current War Office cost shall be ascertained annually in London as during the month of January One thousand nine hundred and twenty-five and as in the month of January in each year thereafter during the term of this contract by the High Commissioner in consultation with an expert such expert being the Inspector of Warlike Stores or some other officer appointed by the High Commissioner in that behalf and the Company's Representative in London or some other person appointed by or on behalf of the Company and the current War Office cost so ascertained (increased in the manner hereinbefore provided) shall be and be taken to be the price (hereinafter called the " Company's price ") to be paid by the Governor-General to the Company for such ammunition during the ensuing twelve months Provided that in the event of war being declared or commenced between Great Britain and any foreign Power then during its continuance the High Commissioner for the Dominion of New Zealand in London or such expert as may be appointed by him in that behalf acting in conjunction with any person appointed in that behalf by the Company shall fix and determine a special price (being not less than the then current Company's price) per thousand rounds and state the time during which such special price shall continue to be paid and the special price so fixed and determined shall for the time being be in substitution for the Company's price which but for this proviso would be payable. It is further provided that in the event of His Majesty's War Office not calling for tenders from contractors for any service ammunition during any one or more years during the term of this contract and a war price not having been fixed to cover that period or periods tne cost ot service ammunition as Demg made at Woolwicn De ascertained during January by the High Commissioner for the Dominion of New Zealand in London but if no service ammunition is being made by Woolwich then the cost of materials for making same be ascertained by the High Commissioner and compared with the cost of materials which were taken as a basis to fix the current contract price for service ammunition for the year One thousand nine hundred and twentyfour and thereafter during each preceding year. The High Commissioner for New Zealand shall then call a conference of a military expert appointed as hereinbefore provided and the Company's representative in London who shall fix a price to be paid to the Company based on the Woolwich ascertained cost of ammunition or on the ascertained cost of material used in manufacture and the price so fixed (increased in the manner hereinbefore provided) shall be taken to be the current contract price that shall be paid to the Company for that current year's supply. When Great Britain is not engaged in war and when tenders are again being called by the War Office for supplies from English contractors then the fixing of the price shall revert back to the first paragraph of clause 3 of this contract. 4. The minimum quantity of ammunition which the Governor-General shall buy from the Company each and every year during the term of this contract shall be Three million (3,000,000) rounds service ball and Two hundred and fifty