Since I had crossed the Floor of the House in 1904 on the Free Trade issue, I had worked in close political association with Mr. Lloyd George. He was the first to welcome me. We sat and acted together in the period of opposition preceding Mr. Balfour’s fall, and we had been in close accord during Sir Henry Campbell-Bannerman’s administration, in which I had served as Under-Secretary of State for the Colonies. This association continued when I entered the new Cabinet as President of the Board of Trade, and in general, though from different angles, we leaned to the side of those who would restrain the froward both in foreign policy and in armaments. It must be understood that these differences of attitude and complexion, which in varying forms reproduce themselves in every great and powerful British Administration, in no way prevented harmonious and agreeable relations between the principal personages, and our affairs proceeded amid many amenities in an atmosphere of courtesy, friendliness and goodwill. * * * * * It was not long before the next European crisis arrived. On October 5, 1908, Austria, without warning or parley, proclaimed the annexation of Bosnia and Herzegovina. These provinces of the Turkish Empire had been administered by her under the Treaty of Berlin, 1878; and the annexation only declared in form what already existed in fact. The Young Turk Revolution which had occurred in the summer, seemed to Austria likely to lead to a reassertion of Turkish sovereignty over Bosnia and Herzegovina, and this she was concerned to forestall. A reasonable and patient diplomacy would probably have secured for Austria the easements which she needed. Indeed, negotiations with Russia, the Great Power most interested, had made favourable progress. But suddenly and abruptly Count Aerenthal, the Austrian Foreign Minister, interrupted the discussions by the announcement of the annexation, before the arrangements for a suitable concession to Russia had been concluded. By this essentially violent act a public affront was put upon Russia, and a personal slight upon the Russian negotiator, Monsieur Isvolsky.