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This was a case in which the F.M.S. incorporat ing in prospecting and mining licences a condition that any tin dredging machinery used should contain at least 75% of British material.

After

A Dutch firm which had specialised in the erection of this machinery and was in fact the only foreign firm involved, was seriously affected by the restriction, and representations were made by the Netherlands Govt. lengthy correspondence it was finally decided to withdraw this restrictive condition altogether. The circumstances were not, however, entirely analogous to the present case of restriction in H.K. The restriction was aimed practically solely at this one Dutch firm and was, therefore, felt to be particularly invidious. Further, the question arose whether this restrict ion was not contrary to the spirit, if not to the letter, of our Treaty of 1824 with Holland. Finally, the Board of Trade were definitely of opinion that if the Dutch chose to adopt retaliatory

measures, the disturbance to the trade

with

relations the Netherlands East Indies, both

relat

w British possessions in the Far East and

with Great Britain, would more than offset

any small benefit arising to British manufacturers

(Of

from the restriction in the licences.

course it is possible the United States may also take retaliatory measures, but it is difficult to see what more they could do than they are doing at present to prevent the entry of British goods into the United States).

The

question

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