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12 in the East Indies that the Spaniards at last gave way upon the point, though it was never conceded openly.

But although the Dutch asserted trade liberties against Spain, their own policy was to establish the strictest monopoly. Between 1597 and 1600, the Dutch ships had first rounded the Cape of Good Hope into Asiatic waters, where they were very fiercely handled by the Spanish forces in that quarter. In 1602, the Universal East India Company had been founded in Holland, with exclusive privilege of trading east of the Cape and west of the Magellan Straits, with a great capital subscribed by all the provinces, with full power to make peace and war in the name of the United Provinces, to levy troops, and to appoint generals. Strong fleets were sent out with orders to expel the Spanish and Portuguese from the Spice Islands and the Indian coasts, to found settlements, and in fact to annex the trade to Holland precisely as they might annex an enemy's province.

In the beginning these proceedings were taken in co-operation with the English, who now make their first substantial appearance, as represented by a Company, in the field of Asiatic commerce. But the two nations soon began to quarrel in Asia, though in Europe they preserved amity, and in 1611 the London merchants prayed for protection and redress, representing that the Hollanders were driving them out of all places of traffic in the East Indies. When a joint commission was appointed to settle matters, the Dutch challenged the sole trade in spices, nor could any arrangement