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Netherland Govenment are now pressing us for confimation of our assurance and an extension of it so as to cover Dutch ships which were on Larch 21st either on the high seas or in neutral ports. Matter has been complicated by a difficulty arising out of a local and temporary agreement entered into in January last by Government of India, and only brought to our notice recently with certain shipping lines trading between British and Jutch Indies. Under a clause of that agreement ambiguously worded but contrary to the interpretation given to it by the Goverment of India Dutch omers claim that is Majesty's Govern ment are pledged not to take 13 ships not engaged in local trade which as a matter of fact we requisitioned among others in all good faith under the terms of our notification to the Netherland Govemment. This controversy has led to the Dutch Colonial Authorities stopping their Indian trade with us.

Indealing with the Jutch request for extension of our undertaking as to non-requisitioning of further Dutch ships, we feel bound to raise this question of the stoppage of Dutch Colonial trade,

in view of the importance of the resumption of this trade and of avoiding with Holland further political trouble over the requisitioning policy which is calculated to play into the hands of Gemany, we decided that to offer the deşi red extendic

twas our beat toyne our best course was the guarantee against fresh requisitions, in retum for definite assurances that with Allied Governments colonial trade will be resumed and on the understanding that in this connection the butch claim to the 13 ships would not be pressed. we have already communicated this proposal to the Dutch Minister.

llaving regard to the fact that the guarantee against fresh requisitions even us now to be extended does not go further than

the

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