11 APRIL 1908, Page 2

With regard to the question of an Ottoman Governor, the

British Government are prepared to adopt the suggestion that he should be called Inspector-General. Sir Edward Grey adds that "his Majesty's Government would have no objection to the retention of Hilmi Pasha, whom they believe to be a capable and honest official, as Inspector-General." In the course of his despatch Sir Edward Grey makes the significant statement, a propos of the Ottoman Government's failure to fulfil its pledge in regard to the Macedonian Budget, that the British Government "will be obliged, if the present deficit is not made good, to withdraw their consent to the continuance of the three per cent. Customs increase, which was only conditionally sanctioned." We may note that in a debate in the French Chamber on Tuesday M. Pichon, the

Foreign Minister, stated that France had intimated her acceptance of the Russian, as contrasted with the British, proposals because the latter were isolated. It is at any rate clear from Sir Edward Grey's despatch that we have no intention of abandoning them on that account.