Mr. Baldwin's appointments, as perhaps was inevitable, have caused some
disgruntlement both among the young Conservatives and the Government Liberals. The latter do not feel that another -representative in the Cabinet is adequate compensation for the fact that the three major offices are now held by Conservatives. The young Conservatives, on the other hand, are very sore at the elevation of Mr. Malcolm MacDonald. Though they recog- nize his undoubted abilities they claim that he would not have become Secretary of State for the Colonies had he not been the son of the ex-Prime Minister and that his appointment is the only instance yet known of nepotism applied to Cabinet posts. There is also considerable indignation at the continuance of Mr. J. H. Thomas at the Dominions Office, where he has been anything but a success. I understand that Mr. Baldwin was anxious to move him and offered him the War Office, but that Mr. Thomas. refused to vacate his present office unless he were made Home Secretary. That office was already reserved for Sir John Simon, and Mr. Baldwin, who throughout has been at great pains to give fair play to the non-Conservative elements, therefore, allowed Mr. Thomas to remain where he was.