'At two o'clock the Cabinet met again. Lord Granville had in the meantime written me a letter … as to the leaving out of "must" and inserting "should." He said that if we changed our minds or had to adopt palliatives, such as the defence of the Canal and reparation at Alexandria, "our nose would be rubbed in 'must.'" I wrote back that our position was not the same, inasmuch as he was evidently looking forward to having to defend in Parliament a complete surrender, which I was determined I would not do. On the same day, however, we exchanged very pleasant letters about an accident to Lady Granville, of which Lord Granville wrote: "It frightened me out of my wits."
'The Cabinet decided on the instructions to Dufferin for the Conference, adopting proposals with regard to them which were made by Chamberlain, and which were, in fact, mine. Lord Granville refused to take them from Chamberlain, but Mr. Gladstone, with some slight changes, made them his own, and then Lord Granville took them directly. Northbrook went off delighted to continue his transport preparations. Hartington warned Indian troops without consulting his colleagues, but escaped censure. On June 23rd I suggested that somebody should be appointed to assess damages to property at Alexandria by the riots, as a ground for a claim against the revolutionary Government, and suggested Lord Charles Beresford for the work; but Lord Granville refused the man though he accepted the thing. I obtained his consent to telegraph that we should insist on payment of money to the relatives of the eight British subjects killed, of money for the men hurt, of damages for the destruction of property, on the execution of the murderers, on a salute to our flag at Alexandria, and a salute to our flag at Cairo.
'On Saturday, June 24th, as I was only getting my way from day to day upon these points by continually threatening resignation, Lord Granville wrote to me in solemn reproof: "Nothing should be so sacred as a threat of resignation." But I cannot see, and never could, why if one intends to resign if one does not get one's way about a point which one thinks vital, one should not say frankly exactly what one means. I never blustered, and never threatened resignation except when I fully meant it.
'On Sunday, June 25th, there came a curious telegram from Dufferin, stating that the Sultan was "quite prepared to hand over to us the exclusive control and administration of Egypt, reserving to himself only those rights of suzerainty which he now possessed. In fact, what he offered was an Egyptian convention on the lines of the Cyprus convention." Lord Granville and Mr. Gladstone took upon themselves to decline this offer without laying it before the Cabinet, and on Tuesday, the 27th, the Queen sent to Hartington to express her anger that the Sultan's offer of Sunday should have been declined without consultation with her. I certainly think that a Cabinet ought to have been called, but the Cabinet would have backed the refusal, though they afterwards regretted it.
'On June 28th I was again sent for to the Cabinet, which discussed a
proposal from the Sultan to send troops.
'On June 30th I dined with the German Ambassador, who told me that
Musurus had said to him exactly what he had said to me at the French
Embassy, and that he had placed the conversation upon record. On the
same day two additional British gunboats were ordered to the Canal.
'On July 1st I had one of the most difficult tasks to perform that were ever laid upon me. I had wanted to get off the Cobden Club dinner fixed for that day; but, Lesseps having come over as a flaming Arabist for the express purpose of making a ferocious Arabi speech at this banquet, I had to go in order to propose his health, to sit next him at the dinner, to frighten him out of making his speech, and to make such a speech myself that he could not without provoking his audience mention Egypt at all. In all this I succeeded. I told him privately that, after the massacre of eight British subjects at Alexandria and the promise by England and France that they would jointly keep order in Egypt, if he introduced the subject I would speak again after him and raise the audience against him. The old gentleman was very angry, but he made a different speech, and the matter passed off successfully. Lord Derby was in the chair, and gave me great assistance, because, through Lord Granville, he allowed me to inform Lesseps that if he began to deliver the speech which he had in his pocket, he should rise and tell him that it was contrary to the rule of the Club to introduce controversial topics likely to lead to violent discussion, and, in fact, make him sit down. Lesseps brought me a telegram from his son, who was at Ismailia, stating that there could be no danger in Egypt unless there were an armed intervention, and threatening us with the destruction of the Canal if intervention should take place.
'On July 3rd there was a Cabinet on a proposal by Italy for the free navigation of the Canal. This was most unnecessary, as a virtual neutralization in practice existed, but the Italians wanted to do something, and after an enormous deal of discussion they ultimately got their way upon this unimportant point.
'On Monday, July 3rd, I received from Bourke, my predecessor, the first warning of strong Tory opposition to British intervention in Egypt.
'On the 4th Mr. Gladstone, Hartington, and Childers met to decide whether the reserves should be called out and the troops sent forward, but just before their meeting I saw Lesseps come past my door and go to Mr. Gladstone's room at the House of Commons, which was next to mine, and going in afterwards to Mr. Gladstone I saw the effect that Lesseps had produced. Lesseps had a promise from Arabi to let him make a fresh-water irrigation canal without payment for the concession, as I afterwards discovered.