The 'it' here refers to 'the Wilson administration'. 02br 02br 01font 00(C) by dropping the proposal, the Wilson administration 02font 00This suggests that the 'dropping' was the reason for the 'seeming'. 02br 02br 01font 00(E) when they dropped the proposal, the Wilson administration 02font 00This seems OK to me.
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01cite10Clive12cite10adds an element of meaning that is not in the original.12blockquote10 Clive,02br