This was argued at his house on Wednesday, 11th, in the evening, at a meeting consisting of Ld. Grenville, Mr. Grenville, Lds. Howick, Holland, Henry Petty. Both the Grenvilles said they were ready to go out if their colleagues thought they could not retreat with honour, but they showed themselves very unwilling to that measure. Petty said the same, with the same reluctant offer. The great argument for not breaking with the King on this point was that this case would appear a bad one to the public, as it might be plausibly argued that they had deceived the King and committed his Governt. to more than he had authorised them to grant. Lds. Howick and Holland, who were the most averse to concession, were induced at length to give up, seeing that their colleagues, though they offered to resign upon this point, did it reluctantly and with a grudge; and being also satisfied that the whole transaction with the King might be represented in the light that was argued by the others. [Sidenote: THE CATHOLIC QUESTION] On Thursday, the 12th, Ld. Howick had an audience of the King, in which the K. behaved to him in the most civil manner, paid him compliments to himself and family, lamented that Ld. Howick had so far misunderstood him in their last conversation, as to imagine that he had his consent to propose the Bill to Parlt., but declared himself satisfied that this was a mere misapprehension on his own side, in consequence of his understanding the reverse to be Ld. Howick’s idea of the conversation from Ld. Sidmouth soon after he parted from Ld. Howick. He assured Ld. Howick that he had spoken of the affair to no persons out of the Cabinet, except to persons of his own family; that he had taken no measures to form an Administration, and that if he must separate from his present advisers, he trusted that, as he had behaved and should behave honourably to them, they would not retire from his service till he had made arrangements to supply their place. He expressed himself in the most flattering manner to Ld. Howick personally, and remarked that he had not been aware till lately of his sentiments on the Catholic question. It seems, when Ld. Sidmouth told him the week before what were Ld. Howick’s opinions on that subject, he started with evident surprise, from which it was argued some days ago that in the end he would yield. Ld. Howick endeavoured to extract from him what was the most he would concede in the present question to the Catholics, but found him resolved not to go beyond the Irish Act of 1793. When Ld. Howick mentioned the extending the same to the Navy, he started and expressed disapprobation. When Ld. Howick said, if the clauses were extended to the Catholics in England, they must also be extended to the Protestant Dissenters (who were not included in the Irish Act, because the Test Act was abolished in Ireland in 1774 or 1775), he started again, and exclaimed, ‘But this is attacking the Establishment.’ In a