'Chamberlain's interview with Mr. Gladstone that had misled the latter had taken place after the Cabinet of Saturday--I think on the morning of Monday, the 18th--and their meeting was on the subject of Childers's Budget proposals. Chamberlain, writing to me about it, said: "We are likely to want four millions less money. Therefore, says Childers, let us have a new Budget and clap an additional tax of £300,000 on wine." Chamberlain also wrote to me, after his interview with Mr. Gladstone, on the Monday afternoon, telling me that Randolph Churchill was going to give notice of a Committee to inquire into the state of Ireland, that Churchill thought that we should be out by that time and supporting him, and that he contemplated a separation from his own leaders, and a union, on a Radical Irish policy for "Local Government," and against coercion, of the two sides from below the gangway. Chamberlain added that, if the Russian matter "were out of the way, Mr. Gladstone would let us go, and I think _we must go_." This correspondence had left me unaware of any change in Chamberlain's view, if there was any, about the Land Purchase Bill. As soon as Chamberlain reached the House on the 20th, and heard from me what I had done, he also wrote a letter of resignation; but he was not pleased, and perhaps rightly, at my having taken so strong a step without consulting him on the precise point. 'In Chamberlain's letter, which was sent at 6 p.m. on the 20th, he said: "Dear Mr. Gladstone,--I have heard with great surprise that you have this afternoon given notice of the introduction of a Land Purchase Bill for Ireland, unaccompanied by any reference to the large scheme of Local Government, the promise of which for next year was the condition of the assent given by Sir Charles Dilke and myself to the proposal for dealing with Land Purchase during the present Session. I am convinced that a measure of the kind suggested by Lord Spencer will have a distinct tendency to increase the agitation for a separation between the two countries, and at the same time will seriously prejudice the success of any such scheme of Local Government as I have submitted to the Cabinet.... In the circumstances I feel that I have no alternative but to place my resignation in your hands." 'On the morning of May 21st Lefevre informed us that he should go with us, and also wrote a letter of resignation, in which he said that he did not agree with us as to Land Purchase, but that as we went he must go, too, on coercion.