once to Emigration and other things. Monsell came and had a long talk with me while Featherston was in the north. He had, evidently, been sent to see whether there was any way of meeting us. But it was equally evident that if anything were done it could be only on condition of crying quits over the old quarrel. Substantially he said to me "Will you cry quits about the troops if we make N. Zealand a separate Naval Station with plenty of ships" (I had hinted this at a dinner party a day or two before) "and do something in the way of Emigration, and so forth." I said for my own self "Yes, provided your proposal is substantial and real and no shams." He said the Commons would never give us a guaranteed loan, and that Lowe would never ask for it if they would (this last of course he did not , but it was all the same). Then I told him he could introduce 100,000 people without cost or much advances, and do us a real good turn without a guaranteed Loan at all. He denied the possibility whereupon I showed it him in two minutes, on something of the calculation I have just put in my letter to Gisborne. Then he said it was a very small thing, not worth while asking the House of Commons for. "Exactly so; then make it bigger," said I. He told Clifford sfterwards that he thought some thing of a really substantial kind might be done; and as you will see by our public letter that Granville brought the general question of aid to Emigration before the Cabinet and no adverse decision was given, we may succeed in getting a good thing somehow after all. But it until and unless we wipe out the troops controversy: and I hope therefore Featherston and I shall be able to agree in doing so. Featherston of course is strongly in favour of a guaranteed loan. But while Lowe is Chancellor of the Exchequer it will never be got: and if we once thoroughly believe this we shall be able to get something else. If we stick at the troops or the guaranteed Loan I will tell you what will take place: the Session will pass away, and after keeping