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material. I objected _in toto_ to Lord Salisbury's clause or its substitute. He was unwilling to yield, chiefly on Lord Salisbury's account, but finally consented. We agreed upon the commutation clause if the 7 and the 5 per cent. were lumped together. On the curates clause we could come to no agreement. He proposed to see Lord Salisbury and the archbishop, and to meet again at four at the colonial office. He spoke with fairness as to the difficulty of his position, and the risk he ran with his own party. I again saw you and asked the Irish attorney-general to be present at the last interview. I stated to him in Lord Cairns's presence how far we agreed, and expressed my regret that on the last point--the curates--our difference was irreconcilable. Lord Cairns said he hoped not, and proceeded to argue strongly in favour of his proposal. He at last, however, at 4.30, compromised the matter by accepting five years instead of one. I shook his hand, which was trembling with nervousness. We discussed the form of announcing the arrangement to the House. We at once agreed it was better to tell the whole truth, and soon settled that it would be better for its success that he should announce the details. I was afterwards apprehensive that this latter arrangement might be disadvantageous to us, but nothing could be better or fairer than his statement. I cannot finish this statement, which I believe is accurate, without expressing my admiration at the firmness and conciliation which you displayed in directing me in all these negotiations. "The news was brought to me on my sofa," Mr. Gladstone says, "and between five and six I was enabled to telegraph to the Queen. My telegram was followed up by a letter at 7 P.M., which announced that the arrangement had been accepted by the House of Lords, and that a general satisfaction prevailed." To the Queen he wrote (July 22):-- Mr. Gladstone is at a loss to account for the great change in the tone and views of the opposition since Sunday and Monday, and even Tuesday last, but on this topic it is needless to enter. As to the principal matters, the basis of the arrangement on the side of the government is much the same as was intended when Mr. Gladstone had the honour of an audience at Windsor on Saturday; but various minor concessions have been added. Mr. Gladston
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