ULSTER’S REFUSAL OF THE PEACE PROPOSALS.

It is expected that the rejoinder of the British Government to the Ulster Cabinet’s reply respecting the Irish settlement suggestions will be completed to-day. The important document embodying the views of Sir James Craig and his colleagues was received by Mr. Lloyd George late on Friday evening. For the present, neither the summary of the peace proposals unanimously approved by the British Cabinet for presentation to the representatives of the Government of Northern Ireland, nor the formal answer of the Irish Ministers, is to be published.

The situation is that Ulster has declined to enter into a formal conference with the British Government until certain of the peace suggestions, considered by the Northern Ireland Cabinet to involve fundamental principles “which, under existing conditions, are impossible of attainment,” are withdrawn from the subjects to be discussed. Ulster, in fact, has refused to come into an All-ireland Parliament, in which, of course, Sinn Fein would have a majority, and takes her stand on the Act of 1920. What Ulster suggests is that the South should set up its Parliament, as the North has done; that the Council of Ireland which was to be the link between the two Legislatures, should come into being; and that, if it is possible to secure complete unity in Ireland, the process should be accomplished on the lines of last year’s Act.

On the other hand, Sinn Fein will agree to no settlement on the basis of “partition,” and the immediate task of British Ministers, acting, as they are doing, in entire accord with each other, is to discover whether Ulster can be persuaded to yield up something in the interests of peace. There is a strong belief in political circles that the Government will find it far more difficult to overcome the objections of Ulster than it did io arrive at the present measure of understanding with Sinn Fein. But, having already surmounted so many grave obstacles, the British representatives on the Conference intend to strain every effort to avoid a deadlock which could end only in the collapse of the negotiations.

Contrary to expectation, there was no meeting of the British Cabinet on Saturday, but Mr. Lloyd George and other Ministers met at Downing-street to consider the Ulster reply. Mr. Chamberlain, Viscount Birkenhead, Sir Robert Horne, Mr. Churchill, Sir Hamar Greenwood, and Sir Gordon Hewart were amongst those who took part in the deliberations. The Lord-lieutenant of Ireland, Viscount Fitzalan, was called into consultation, and the situation created by Ulster’s rejection of the peace suggestions was fully explored. In the afternoon Mr. Lloyd George went into the country, and is returning this morning hi order to preside at noon over another meeting of Ministers, at which an answer will be framed to the communication from the Cabinet of Northern Ireland. The document will be so drafted as to pave the way for a further exchange of views.

Sir James Craig is due to leave for France in the course of the next few days, for the purpose of attending the unveiling by Lord Carson of the memorial to the Ulster Division at Thiepval. The Ministers from Northern Ireland did not remain in London during the week-end, but Colonel Spender states that they will be prepared to reassemble at short notice should Mr. Lloyd George desire to confer with them. Whether preceded by the exchange of a series of notes or not, sooner or later an interview between the representatives of the two Governments is certain to be arranged. Naturally, peace hopes are at a rather low ebb, as the result of the new crisis, and the present week will be the most anxious period since the negotiations were first set on foot. The outlook is unpromising; in well-informed quarters there is a refusal to believe that it is hopeless.