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C 7 e.g. Hides, by the Circular Despatch of 12th. February,

1916, may only be exported to Spain if Consular approval

ia notified to us first. Hides for Spain will no longer

require licences and the phrase "Existing instructions as

to issue of licences" hardly applies here.

difficulty arises in connexion with sausage-casings for

Spain which are subject to various conditions (Telegram of

11th, December, 1917.) and with pepper for South America

for which the telegram of 11th. July, 1917, requires a

guarantee against re-exportation, Do these "instructions

hold good" now that the C. Classification has removed the

necessity for "licences", is the exportation of "all other

articles" to "C" countries to be absolutely free to White

List or non-Black List consignees ?.

or

Some of the "dispensations" referred to in the

preceding paragraph are limited to the goods concerned when

of foreign origin. This discrimination causes no little

dissatisfaction as assisting foreign to the prejudice of

British trade e.g. in August, 1917, large quantities of

Indian groundnuts (peanuta) were arriving in the Colony via

Singapore and Penang. They were not wanted for local con-

sumption but in obedience to the limitation to "foreign

origin" in the telegram of 11th, July, 1917, they were not

allowed to be re-exported to South China (for which market

they had been purchased) until considerable correspondence

had passed between this Government and Singapore. If the

whole British output of a given article is required either

by the British Empire or the British Government, it is

preferable that the (British) Country of production should

refuse altogether to permit shipment to Hongkong, unless

the Hongkong Government certifies that the article is

required for genuine local consumption. Thus, linseed oil,

which is required in considerable quantities for local

shipyards and shipping should be allowed to come here from

India

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