CO129-451 - Public Offices - 1918 — Page 364

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Netherland Goverment are now pressing us for confi mation of our assurance and an extension of it so as to cover Dutch ships which were on March 21st either on the high seas or in neutral ports. Lutter 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 notic360

recently with certain shipping lines trading between British and Dutch Indies. Under a clause of that agreement ambiguously worded but contrary to the interpretation given to it by the Govemment of India Dutch owners claim that his Majesty's Gover- 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 Dutch request for extension of our undertaking as to non-requisitioning of further Dutch anips, 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 Germany, we decided that to offer the desired extension, our best. course was the guarantee against fresh requisitions in

was mer best course

retum for definite assurances that with Allied Governments colanial trade will be reaused and on the understanding that in tais connection the Dutch claim to the 13 ships would not be pressed. We have already communicated this proposal to the Dutch Minister.

Having regard to the fact that the guarantee against fresh requisitions even as now to be extended does not go further thun

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