26 APRIL 1935, Page 3

But the Cabinet are not taking any chances. They realize

how quickly the fortunes of Governments change, and they fully appreciate the nuisance value of Mr. Lloyd George if he is ranged against them. His recent speech at the Scottish Liberal Club seemed to indicate that in certain circumstances he might be prepared to place his resources once again behind the Liberal Party. His fund has recovered from the effects of the slump, and according to my information is in the region of half a million. Mr. Lloyd George could do a great deal of damage with that, and the Government are therefore approaching the New Deal with a not unnatural bias in favour of -giving it as generous an acceptance as the obvious difficulties inherent in some of the proposals will allow.