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This is a commemorative mug celebrating the Coronation of King George VI and Queen Elizabeth (the Queen Mother) in May 1937.
The mug features a royal cypher with the intertwined initials "G" and "E" for George and Elizabeth, surrounded by a laurel wreath, and topped with a crown.
The inscription "MAY. 1937 - CORONATION" is visible on the rim of the mug.
Such mugs were produced by various English pottery manufacturers, including Johnson Bros