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The Treaty of 1924 contains stipulations that the two High Contracting Parties shall "admit the subjects of each other to trade with their respective possessions in the Eastern Archi- pelago, and on the Continent of India, and in Ceylon, upon the footing of the most favoured nation:" and again, that "the subjects and vessels of one nation shall not pay upon importa- tion or exportation at the ports of the other in the Eastern Seas, any duty at a rate beyond the double of thut at which the subjects and vessels of the nation to which the port belongs are charged."

Under this Treaty we shall be obliged to admit the ships of Holland to trade freely with our possessions on the Continent of India, and in Ceylon and the Eastern Seas (Singapore, Ma- lacca, and so forth), although they absolutely exclude us, in common with other foreigners, from trading with the spice islands and with some of their settlements in Borneo, and although they have the power of absolutely excluding us, with other foreigners, from any other of their possessions. This case alone demonstrates the impossibility of adopting a rigidly self-acting rule of retaliation, without making provision for the fulfilment of treaty obligations. More- over, it is doubtful whether we are not bound to admit Dutch vessels to trade between this

country and India, although they may, and

I believe do, confine the trade between Holland and her colonies to Dutch ships.

Whether

the second extract is clear enough to allow

us to charge differential duties on Dutch ships,

in spite of the first article, may be questioned: but I think we should be entitled to do so..

The Treaty of 1837 contains a general stipu- lation, that the subjects of one party shall not pay higher duties in the ports of the other than the subjects of the most favoured uation; and that they shall enjoy the same privileges in mat ters of commerce and navigation as the subjects of the most favoured nation. But as there is a subsequent article to the same effect containing the common conditional clause, I assume that the condition may be understood, though it is If it not expressed, in the first stipulation also.

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may not, we shall find much difficulty with regard to several other treaties.

Another question which arises out of the Treaty of 1837 is that noticed below, as arising also out of the Treaty with the Hanse Towns.

VI. Hanse Towns.

In the Treaty of 1825 with the Hanse Towns, there is a stipulation that all goods, wares, and merchandize, whether the production of the Hanse Towns or of any other country, which can legally be imported in British ships, shall also be admitted in Hanseatic ships. If, therefore, we repeal the prohibition against importing the pro- duce of Asia, Africa, and America, from Europe,

and allow it to come in British ships, we must admit it from the Hanse Towns in Hanseatic ships, without any equivalent, and even if it were not admitted in the ships of any other foreign country.

We are equally bound to admit such produce from Sweden in Swedish ships, and from Holland

in Dutch ships.

VII. Other Countries.

It is sufficient to remark, that any privileges which we may be obliged to grant uncondition-

ally or gratuitously to any country, must be granted in like manner gratuitously to the following countries:

Austria, Prussia, Portugal, Hanover, Sicily, Uruguay; besides Holland, Sweden, Denmark,

&c.

It is not pretended that the foregoing remarks einbrace every case of difficulty that could by possibility arise; but I think they will be found

to indicate sufficiently the kind of difficulties most to be apprehended, and will show that we could not safely 'adopt a self-acting rule. 1 draw from them the following as the most important conclusions:-

1. If we proceed by way of strict reciprocity, we must be prepared to abandon the principle so far

as regards the importation of Asiatic, African, or American produce from Europe, which we shall p