28 APRIL 1928, Page 3

On Wednesday Sir Austen Chamberlain announced that Mr. O'Malley's resignation

from the • Foreign Office, which was demanded after the " Francs " case, would not be accepted. Mr. O'Malley would be allowed to return after a year with a serious loss of seniority. We understand that the Prime Minister and Sir Austen were convinced of the justice of this step, believing that the sentence on Mr. O'Malley was relatively too severe, and that there had been misunderstandings of fact which had led to unnecessarily stringent criticisms in the Report of the Board of Enquiry.

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