'On March 27th there was a Cabinet without Chamberlain, who was listening to George Russell's speech which I had got him leave to make, and without Mr. Gladstone, who was still ill. The Cabinet decided against an expedition to Khartoum, but the Chancellor' (Lord Selborne) 'gave us to understand that he should resign if one were not sent in the autumn, and Harcourt intimated that he should resign if one were sent. Lord Granville observed that no Cabinet could last a day if it was to be exposed to going to pieces on differences as regards the future. Harcourt proposed to "clear out" of Egypt immediately. Lord Granville won an easy victory over him by proving that only three weeks ago he had wanted to take Egypt under our protection. Harcourt then said that as long ago as November, 1883, he had spoken in favour of clearing out. "Yes," said Lord Granville, "so you did; but I said three weeks ago." 'On March 29th there was a Cabinet at Coombe Warren. Mr. Gladstone seemed pretty well, and had at least one good laugh. He still regretted Zebehr. The Cabinet considered Gordon, what we should do with slavery at Suakim, and House of Commons business.' About this date the main body of the British troops was withdrawn from Suakim in accordance with the decision of March 25th. They had inflicted defeats on Osman Digna at El Teb, and again at Tamanieb; many Dervishes and not a few English had been killed, but no effect of moment had been produced, and the road to Berber was not opened. A new complication now arose. Egypt was presented with Europe's total claims for the losses to Europeans in the burnings at Alexandria. They amounted to four millions and a half. How was this demand to be met? Under the Law of Liquidation established in 1880, Egypt could not borrow without the consent of the five Powers who had constituted the Commission of Liquidation. The demand presented to Egypt had to be considered by the one Power which was now _de facto_ supreme in Egypt.