_December 24th._--I went to town this morning to hear what was going on. I found Granville who told me there was a negotiation on foot, conducted by Newcastle, who had been to Palmerston yesterday and discussed the matter. Palmerston was to give his answer at twelve to-day; Granville did not think any concessions about Reform were to be made to him, and nothing more than an agreement that the whole question should be reconsidered. He was to write a letter, saying there had been 'a misunderstanding,' said he was evidently dying to remain, full of interest in foreign politics, and could not bear to be out the way of knowing and having a concern in all that is going on, and probably by no means insensible to the difficulties of another position, that of being the leader of an Opposition, and still more to the having to form and carry on a Government should that Opposition be successful. All this I think exceedingly probable. I then went to Clarendon, where I learnt that Palmerston had given his answer, and that he meant to stay. He had written a letter, not exactly such a one as they could have wished, but which must do; and though it was not yet formally settled, it had gone so far that it could not fail now. Both Clarendon and Granville told me John Russell had behaved admirably, which I was glad to hear. Granville thinks Palmerston has no _rancune_ against Aberdeen, but a good deal against John Russell. Granville said I had made a bad selection in writing to Graham on Thursday about Palmerston's staying in, as of all the Cabinet he was the man most against him, and most opposed to his return; but Clarendon said for that very reason he was very glad I had addressed myself to Graham, and that I had since written him a strong letter, as I did yesterday, setting forth as forcibly as I could the expediency of a reconciliation and the danger of Palmerston's separating himself from them, and the infallible consequences thereof. BARAGUAY DECLINES TO ENTER THE BLACK SEA. Walewski has been making a great flare up about the article in the 'Times,' stating that Dundas wanted to pursue the Russian fleet after Sinope, and that Baraguay d'Hilliers put his veto on the operation. Clarendon assured him the statement was inserted without his privity, and he had nothing to do with it. Walewski then asked him to authorise a formal contradiction in the 'Globe,' or to let it be officially contradicted in the 'Moniteur.' Clarendon declined the first, and advised against the latter course. I offered to speak to Delane about contradicting it in the 'Times,' which I afterwards did. He said the fact was true, and he had received it from various quarters, and it was useless to contradict it; but there was no reason the 'Moniteur' should not do so if they liked, so I sent him to Clarendon to talk it over and settle what was to be done to smooth the ruffled plumage of the French.