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Here's an excerpt from a post on Roadracer X. Looks like the Brits did it so their old thumpers could still compete with the German & Italian bikes of the period that used them to great success. The FIM banned dustbin fairings in 1957 btw.

"Dustbin fairings were banned by the FIM in the years after WWII. It was a period of increasingly restrictive rules, as forced induction (i.e., turbo-charging and supercharging) was also banned. Nominally, the fairing rules were put down to ensure that motorcycles had adequate steering lock and were not imperiled by crosswinds. The truth is probably that the rules were British punishment for the Germans' starting the war and the Italians' role in it; the restrictions definitely extended the useful life of the British racing singles that made up the bulk of 350 and 500cc grids."

cafe (racer) society (archive): Ode to the Dustbin Fairing:
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