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condition, last year's budget again gave a surplus, which is to be spent 

 on public buildings and for other public uses. From the Report of the 

 Hamburg Chamber of Commerce we learn that a new Customs' Bill and 

 the draft of a new Tariff have been laid before the Uruguayan Legislature, 

 by which the Government is empowered to reduce the import duties by 

 50°/o in the case of countries which offer a corresponding concession to 

 Uruguay, but that these reductions are not to apply as a matter of right 

 to countries which have commercial treaties with Uruguay containing the 

 most-favoured nation clause! The Report expresses the hope that this 

 condition will not be carried into law. But that it should even be possible 

 to make proposals of this kind shows the desirability of making definite 

 customs treaties with South American republics, and, of not basing 

 commercial relations with those countries merely upon the most-favoured 

 nation clause. 



Brazil last year again occupied the premier place among the South- 

 American markets, especially because this opulent country had another 

 good year to place upon record. The high rubber quotations of the first 

 six months, followed by the rising prices realised by the staple export, 

 coffee, have strengthened both the power and the desire for purchasing 

 in all branches of trade, and have also benefitted the soap and perfumery 

 Industries, which are steadily expanding. The financial situation of this 

 vast country has again experienced a gratifying improvement, and it is 

 therefore permissible to entertain the highest hopes of the further economic 

 development of Brazil. 



In Chili the conditions have shown some improvement, the results 

 of the nitrate industry in the northern provinces as well as of agriculture 

 in the centre and the south having been satisfactory, but confidence in 

 a country which has been visited by such serious crises in recent years 

 is difficult to restore. So far as we are concerned, however, no complaint 

 can be made of business in Chili ; our turnover has been quite important 

 and, the prospects of the coming crop being good, a further condition 

 precedent for the improvement of the economic condition of the country 

 is in existence. > 



The situation in Peru, however, cannot be judged so favourably. 

 Owing to the instability of its political situation and its differences with 

 the neighbouring republics of Chili and Ecuador, this country cannot settle 

 down, while occasional internal disturbances add in impeding the wholesome 

 development of commerce. 



For Japan the year 1910 has not been a particularly prosperous one. 

 The enormous floods have done incalculable damage to industry. In the 

 first place the rice-crop has suffered greatly, only a medium crop having 

 been obtained. The silk-crop likewise was greatly injured by the extra- 

 ordinarily wet summer. As may be readily understood, these primary 

 influences have greatly reduced the purchasing power of the people, and 



