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Refers to Montagu's telegram of 6 June regarding the Prince of Wales's visit. The non-co-operation agitation is now less active. The recantation of the Ali brothers has, he thinks, had a damping effect on the Khilafat supporters and the Gandhi movement, notwithstanding Mohammed Ali's explanation of his apology. Sapru, Shafi, and Malaviya also think the situation improved. Gandhi is not succeeding in obtaining support and money. Butler is dissatisfied with the position in the United Provinces, and wishes to proceed with prosecutions against the Independent and others; the Government of India will decide on their policy on Friday. Is concerned at the number of youths in gaol for lesser offences, and favours releasing them upon expressions of regret and promises of future good behaviour. So long as Gandhi pursues his present policy of less virulence and refrains from preaching active hatred of the Government, no action should be taken by the Government; but prosecutions should be instituted wherever speeches are made inciting to violence, or whenever the agents of the non-co-operationist movement lie about Government action or preach hatred of it. It is not always easy to distinguish between speeches denouncing Government policy and thus exciting disaffection against it, and speeches containing serious mis-statements, accompanied by incitement to hatred, but he recommends prosecution only in the latter case at present.

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Malaviya has agreed to become a member of the committee appointed in connection with the Prince of Wales’s visit. Gwalior and Bikaner will also attend the meetings, though not as members, as will Shafi and Sapru. The inclusion of Malaviya is bold but wise, for though he is not quite a non-co-operator, he is in sympathy with Gandhi regarding social reform and carries weight with ‘thoughtful’ Indians; he seems increasingly inclined to advocate constitutional means for enforcing swaraj, and may eventually have a moderating influence on Gandhi's chief supporters and perhaps Gandhi himself. Malaviya is presently giving evidence before Rawlinson's Army Committee; he favours the formation of officer training corps at the univer-sities (a proposal which Reading thinks could be effected) and wants the Prince's visit to be identified with their formation. It is important that Malaviya should be associated with the Government in preparing a welcome to the Prince. Gandhi's social reform programme is meeting with success; he has just collected over a crore of rupees as a result of an appeal, though some of the money may not be paid. Many of the subscriptions are earmarked for particular reforms. These subscriptions are a tribute to Gandhi's moral and religious elevation. Many of them are not strictly political, but they produce an effect on the public mind. Gandhi is more criticised politically than before. It is unclear what his attitude will be to the Prince's visit. Refers to Montagu's telegram of 5 July: does not think the situation altered by subscription.

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