'On the morning of January 5th Harcourt had told me that Mr. Gladstone intended to resign, and that Lord Granville would follow Mr. Gladstone, in which case Hartington intended to make him, Harcourt, Chancellor, to move Lord Derby and Childers, to put in Rosebery, [Footnote: As Secretary for the Colonies.] to offer Chamberlain the Chancellorship of the Exchequer, and me the Secretaryship of State for Foreign Affairs. But, great as were the offices proposed, Chamberlain and I could not have consented to remain in if Mr. Gladstone had gone out notoriously dissatisfied. If he had gone out on grounds of health alone, it would, of course, have been another matter.' In a letter, 'probably of Monday morning, January 5th, Chamberlain said that Mr. Gladstone's retirement was possible, and might be necessary; that Hartington and Harcourt could bring it about; but that we must be most careful not to allow them to say that we had been engaged in an intrigue with them against Mr. Gladstone. He thought that we ought to tell them frankly that we could enter into no negotiations with them, and to put this in a Memorandum to which we could afterwards appeal. On the other hand, he was willing to state his views as to policy, provided all reference to personal questions was avoided. As his Egyptian policy, he stated "immediate bankruptcy, communication to the Powers of our fixed intention to leave, declaration that we would not allow intervention by other Powers in our place, and Conference to settle details of neutralization." As to domestic policy, he agreed in my suggestion that we should insist upon an immediate Civil List Committee, and proposed an inquiry into labour. He gave me leave to discuss his letter with Harcourt ("the latter has always been a most loyal friend, though he can not be expected to agree with us in everything"), and I did so before the Cabinet of January 7th.' By this time Mr. Chamberlain had come to London, and there is no indication that his speech at Birmingham had created friction. But the party which wished to offer resistance to Germany's high-handed policy had been strengthened by a new instance of usurpation.