§ 8. Captain ORMSBY-GOREasked the Secretary of State for India whether the Indian Government have entered into a contract, or propose to enter into a contract, with an armament firm in this country for tins provision of a proportion of the locomotives required for the Indian railways; whether he has received any representations on such a proposal from the British Locomotive Manufacturers' Association, who have hitherto provided the bulk of the engines required in India; and whether the latter association or individual firms which are members of it will be given terms as favourable as are to be given to the newly-entering armament firm?
§ Mr. MONTAGUThe Government of India have discussed with representatives of Messrs. Armstrong, Whitworth rind Company a scheme tinder which that firm would establish' an Indian company for the manufacture of locomotives, and the Government would undertake to buy from it a third of the engines arid boilers which it requires. No contract has been made. A deputation on the subject was received at the India Office in July from the Locomotive Manufacturers' Association, and the negotiations with Messrs Armstrong have been suspended in order to enable the association to formulate a counter proposition, for which I am now waiting.