Letter acknowledging Crewe's condolences.

South African financial and economic position deteriorating. Business men are sending money out of the country.

Co-operative and Building Societies suffering. The Kimberley Mines in a bad way. The South African Party erred in boycotting the Sibet(?) Committee. Chaplin suspects the Government deliberately is attempting to cripple the loyalists financially, and gain support of the rural districts by raising the racial alarm.

Wishes Crewe better health. Agrees that Smartt was a steadying influence on Smuts. Refers to the Ottawa Conference. Is contemptuous of the Lausanne Conference and Ramsay Macdonald's efforts. Comments on German military aggression. Personal news.

Leven had a meeting on the 1st June with Capt. Charles Struben to explain fully all points on which there had been misunderstanding with the Cape Town Office. Leven hopes that the South African representatives at the.

Ottawa Conference will discuss Empire migration. The United States Government has agreed to an international Conference to stabilize world prices. The world situation critical. The Annual Meeting of the Settlers' Association will be held on 12th July.

The annual meeting of the Cape Branch of the Settlers Association went off all right. Government policy in South Africa does not encourage British settlers. The Cape Provincial Council's demands for power will weaken the Government. Havenga's deficit is due to his adherence to the currency policy. Dissatisfied with Long's article published by Ottowa Conference on 27th inst. No news of Lionel Phillips. Apologises for absence from East London Conference.

Is looking forward to Crewe's visit in May and is pleased at his recovery. Describes a visit to Violet Milner.

Considers that the Disarmament Conference will be a failure.

Refers Crewe to an article in the November number of "National" by O.K. Webber. Is assisting Jabavu to fight for Native electoral claims. Thinks young people should emigrate to South Africa because land is cheap there. The Milner Papers vol. 2, will be out in the Spring. Recommends that Crewe should meet Lord Lloyd.

Lord Selborne is unable to understand the South African Party's anxiety to rescue Hertzog from "the consequences of his blunders". Selborne discusses unemployment in Britain and the political situation. Also discusses political situation in Germany, in the U.S.A. and Britain's economic situation.

Acknowledges Crewe's telegram regarding Byron and asks Crewe to support Byron. Realises that the "Dispatch" is against coalition, but feels that a racial truce would benefit South Africa and the British cause.

Smuts anxious for Byron's nomination as candidate.