At this juncture Mr. Chamberlain was absent from London, and communicating only by letter with Sir Charles, whom he had not seen since the middle of December, when Sir Charles crossed to Paris, on his way to Toulon; and before the unauthorized programme was launched Lord Hartington contemplated forming a Government which would have given the foremost positions to Dilke and Chamberlain.

'On the morning of January 5th Harcourt had told me that Mr. Gladstone intended to resign, and that Lord Granville would follow Mr. Gladstone, in which case Hartington intended to make him, Harcourt, Chancellor, to move Lord Derby and Childers, to put in Rosebery, [Footnote: As Secretary for the Colonies.] to offer Chamberlain the Chancellorship of the Exchequer, and me the Secretaryship of State for Foreign Affairs. But, great as were the offices proposed, Chamberlain and I could not have consented to remain in if Mr. Gladstone had gone out notoriously dissatisfied. If he had gone out on grounds of health alone, it would, of course, have been another matter.'

In a letter,

'probably of Monday morning, January 5th, Chamberlain said that Mr. Gladstone's retirement was possible, and might be necessary; that Hartington and Harcourt could bring it about; but that we must be most careful not to allow them to say that we had been engaged in an intrigue with them against Mr. Gladstone. He thought that we ought to tell them frankly that we could enter into no negotiations with them, and to put this in a Memorandum to which we could afterwards appeal. On the other hand, he was willing to state his views as to policy, provided all reference to personal questions was avoided. As his Egyptian policy, he stated "immediate bankruptcy, communication to the Powers of our fixed intention to leave, declaration that we would not allow intervention by other Powers in our place, and Conference to settle details of neutralization." As to domestic policy, he agreed in my suggestion that we should insist upon an immediate Civil List Committee, and proposed an inquiry into labour. He gave me leave to discuss his letter with Harcourt ("the latter has always been a most loyal friend, though he can not be expected to agree with us in everything"), and I did so before the Cabinet of January 7th.'

By this time Mr. Chamberlain had come to London, and there is no indication that his speech at Birmingham had created friction. But the party which wished to offer resistance to Germany's high-handed policy had been strengthened by a new instance of usurpation.

'Mr. Gladstone was absent from this Cabinet. The first matter discussed was that of Samoa raised by me. There had been received on the night of the 6th from the Governor of New Zealand a telegram saying that the Germans had made a treaty giving the whole authority of Government to the German Consul. While Münster had been telling Lord Granville that Germany would take no step hostile to Samoan independence, the Germans had sent warships there with secret orders, and had hoisted their flag in various parts of the islands. The next subject mentioned was that of Zanzibar, and it was decided that we should warn Germany that we would not brook interference there. At the same time I had much doubt whether Lord Granville would act upon the instructions of the Cabinet in this matter, and my doubts were justified. The third matter was that of the Pondo coast, and also the coast of Zululand. Mr. Gladstone alone objecting to a protectorate and being absent, it was decided to have one.'

'Then came the old question of sending troops to Suakim; [Footnote: Colonial troops were offered about this time, and the Diary contains the entry, February 20th: "The sending of a Colonial force to Suakim. Hartington and Derby had snubbed the Colonists, and were snubbed by the Cabinet in consequence.">[ then that of Egyptian Finance, on which Harcourt broached his scheme by which the United Kingdom was to pay the difference caused by a reduction of the rate of interest, to which scheme Chamberlain and I were opposed. We were informed that the Queen "most strongly protested against our binding ourselves to leave Egypt."'

Meanwhile the Radicals in the Cabinet considered their concerted action in view of a change of leadership.

'We settled during the Cabinet that Trevelyan, Chamberlain, and I should meet at my room at the Local Government Board, directly the Cabinet was over, to discuss the terms on which we would join a Hartington administration; and we did so, finding Egypt and my proposed inquiry into the Civil List the only real difficulties. The Civil List could be got over, as it was certain that the Whigs would give in to pressure from us upon this point. But Harcourt had informed us that our Egyptian policy made the formation of a Government impossible, as Hartington would not consent to accept office on our Egyptian policy.'

It was very difficult to come to an agreement about Egypt. Lord Derby had declared that the only alternatives were guaranteed neutrality or annexation. Dilke and Chamberlain stood for the former, considering their duty done if they prevented occupation by any other European Power, and took steps to establish internal order—which meant completing the organization of an Egyptian army. There was a third policy; for Lord Hartington, who repeatedly in public repudiated the idea of annexation, insisted upon the retention of a single control during a prolonged occupation. In this he had the strongest backing from the Queen.