xi.] On the day after the resignation of Lord Carnarvon, the British Cabinet heard for the first time what were the demands of Russia.

They included the formation of a Greater Bulgaria, "within the limits of the Bulgarian nationality," practically independent of the Sultan's direct control; the entire independence of Roumania, Servia, and Montenegro; a territorial and pecuniary indemnity to Russia for the expenses of the war; and "an ulterior understanding for safeguarding the rights and interests of Russia in the Straits." The extension of Bulgaria to the shores of the Aegean seemed at that time a mighty triumph for Russian influence; but it was the last item, vaguely foreshadowing the extension of Russian influence to the Dardanelles, that most aroused the alarm of the British Cabinet.

Russian control of those straits would certainly have endangered Britain's connections with India by way of the Suez Canal, seeing that we then had no foothold in Egypt.

Accordingly, on January 28, the Ministry proposed to Parliament the voting of an additional sum of L6,000,000 towards increasing the armaments of the country.

At once there arose strong protests against this proposal, especially from the districts then suffering from the prolonged depression of trade.