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24 Queen Anne’s Gate, S.W.— Thanks him for his letter explaining the position. He does not think the differentiation between cotton Customs and Excise Duties in India could ever be prevented, and as it has been done it does not matter. But he does not regard Interest and Sinking Fund of £100 million a year as a sufficient burden for India with her almost insignificant unproductive debt, and does not think India entitled to special consideration when compared with the burdens laid on other parts of the Empire. Points out that the increased pay of the Indian Army has been practically paid for by allowances for services abroad. Those who make cotton goods in India must, as a result of the differentiation, be allowed to increase the price of their goods. If the State protects any industry it ought to share in the profits, but the question with regard to cotton manufacture in India is very difficult. He wishes that it had been possible to make a policy for the whole Empire before dealing with it in India.

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Informs Sidgwick that his friend Chamberlain 'is thinking of sending his son to Trinity, and asks Sidgwick about the procedure involved. Asks if there has been 'any new light lately on the twin sovereign mysteries of Being and Value'. Regrets that he is too busy to spend a Sunday afternoon with Sidgwick. Hopes that he likes Myers' book, which seems to him 'extremely good in every way.'

From Arthur B. Cane, Austen Chamberlain, Ernest R. Debenham, Frank Gillson, L. N. Guillemard, Stanley M. Leathes, Theodore Morison, F. S. Oliver, Arthur Platt, W. A. Raleigh, R. Ll. B. Rathbone, A. H. Smith, H. Babington Smith, H. F. Stewart, Arthur H. Studd,. C. S. Whibley, H. F. Wilson.

State Government House, Melbourne.—Has received his letter of 1 April. Asks who Geoffrey is marrying. Is surprised, in view of the ‘ministerial reconstruction’, that Montagu made light of the rumours of a coalition Government. It is speculated locally that the reorganisation resulted from disputes between Winston and Fisher or a desire to involve both parties in the unpopular move of introducing compulsory service. A joint Cabinet will perhaps have more authority and be less subject to partisan criticism. The reconstruction of the Admiralty is an advantage. Sympathises with Montagu’s loss of the Chancellorship of the Duchy of Lancaster, but thinks he will not regret returning to the Treasury and the Patronage secretaryship. An Act of Parliament may be needed to approve the creation of Lloyd George’s new Ministry. Is surprised that McKenna was appointed [as Chancellor of the Exchequer] rather than Austen or Bonar Law. Does not believe that he himself will be affected by the reconstruction of the Colonial Office. Is sorry for Blue Tooth. The action taken as a result of the temperance agitation was inadequate; he supposes the new Government may do something more drastic. Refers to the proposed reduction of licensing hours in Australia, and notes that the Union of Governors and Governor-Generals have decided to become teetotallers. He himself has found this easy, but M[unro]-F[erguson] has not. He finds M-F a bore, but gets on better with him than he probably would have done with Denman. The Liberal Party in the Federal Parliament are blaming Cook for having asked for the double dissolution, which is unfair, since, though it turned out badly, they had all supported it at the time. If he had been in M-F’s place he would have refused the request, though this would admittedly have laid him open to abuse from the Liberals, and he may be ignorant of some of the circumstances. Asks Montagu to write again.

11 Downing Street, Whitehall, S.W.1.—He has been unable to get a decision from the Prime Minister tonight. The Prime Minister says he must have time to consider a Cabinet, and it was not possible to press him further, as two or three men not in the Government were present.

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Thanks him for his letter, but stresses that he must reply to Reading today, as he is due to meet the deputation on the 21st. If the Government is not prepared to authorise Reading, he supposes he must advise him that he has not been able to get a Cabinet in time but accepts the proposals and will support his decisions.

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10 Downing Street, London, S.W.1.—The Cabinet is busy discussing reparations, and a question of such importance as that raised by Reading [see A3/15/1–3] cannot be settled in the middle of another discussion; but the Prime Minister has agreed to hold a Committee meeting this afternoon. Asks Montagu to send copies of the telegram to the ministers in question.

(Misdated the 19th.)

8, Grosvenor Crescent, S.W. - Will certainly vote at the Athenaeum this afternoon; would have put his name on Mr Clifton's card if he had known beforehand. He and Caroline were glad to see Bessie and 'much interested in the plans of the house'. Sees the "Times" this morning has started a 'carefully organised and most outspoken propaganda' for Balfour and Chamberlain's news [on tariff reform?]: 'If the Liberal Unionists stand that, they will stand anything'. His proofs [for "The American Revolution"] are all finished, and today he will show Longman the revision of his 'First Part', which will be the first of the three volumes of the 'cheap edition', coming out in eighteen months time.

8, Grosvenor Crescent, S.W. - Went to vote for Mr Clifton on Monday morning, but he was not up for election this week; will check again this week; 'never quite certain when a name comes on'. Agrees with Robert about strategy, and is glad Liberal leaders are taking that line; 'vigour and dash about the propaganda' [see 12/60], and avoidance of any move which would 'commit a lot of unhappy Unionist MPS to Chamberlain's [tariff reform?] policy' are what is needed at the moment. Discusses the changes he has made to the first part [of his "American Revolution"].

India Office, Whitehall, S.W.1.—Sends copies of A3/10/5–8 and gives the text of a telegram he proposes to send to the Viceroy assuring him of the Government’s confidence. Urges Lloyd George to use his influence to prevent a debate on India in the House, the main object of which is the continuance of the vendetta of a small but determined group against himself. A debate at this time would cause alarm as to the condition of India, evoke sympathy with seditionists from the extremist benches, advertise and traduce the supposed shortcomings of the Government of India, and advertise seditious utterances and untoward incidents. No new policy is contemplated, and they have no definite statements to make regarding actions against individuals, their main concern being for the success of the Prince of Wales’s visit. Suggests that the Leader of the House should appeal to the small ultra-conservative forces, and that they should be privately assured of the Government’s reasons and motives.—Postscript to Curzon’s letter: Has heard that the debate in the Lords is to take place this afternoon, and is sure that an early intervention by Curzon would go far to discourage further debate.

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