SENSATION IN LONDON

Evening Star, Issue 19781, 3 February 1928, Page 7

SENSATION IN LONDON

FOREIGN CURRENCY CASE PROMINENT OFFICIALS INVOLVED GOVERNMENT ORDERS INQUIRY Press Association—By Telegraph—Copyright LONDON, February 2. Mr Baldwin’s action in the Dyne case is warmly commended by the Press. Within a few minutes of the jury’s verdict a statement was issued from Downing Street to the effect that the Prime Minister, after consultation with the Secretary for Foreign Affairs, had directed an inquiry to be made forthwith. The case had been progressing since Friday. It appeared to be an .ordinary financial lawsuit, and did not attract attention, especially in view of Lord Haig’s death, until in the closing stage Mrs Dyne gave evidence, mentioning the names of Mr W. D. Gregory (Under-Secretary to the Foreign Office), Commander Maxse (Second Secretary in the Foreign Office), and Mr O’Malley (First Secretary, 1924), who last year, as counsellor to the Embassy at Peking, negotiated the Hankow agreement.

Mrs Dyne said she became acquainted with the firm through Gregory.

Cross-examined, she agreed that Gregory sometimes shared her profits. She had paid him 50 per cent, of them. Sometimes that amounted to £I,OOO. She twice had transactions for Masse and O’Malley.

Asked why Gregory chose her as the channel for his transactions witness replied; “He was a busy man and 1 had nothing to do.” She added that sho opened her account with Gregory’s money. Gregory came into prominence in 1924, when, in the absence of Mr Ramsay MacDonald, he signed a stern note to Moscow regarding the Zinovieff letter.

The ‘ Daily Express ’ states that Gregory has not been at the Foreign Office for a week, it is understood that he will not resume while the inquiry is proceeding.'

Mrs Dyne, in’ an interview, said: “ Masse only helped as a friend to sort but the complications of my financial gambling. I am sorry Gregory has been brought ihto the case. Gregory came in on certain contracts, sharing half the risk or half the gain. He was a school friend of my husband. I was anxious to work during the war, and obtained a post in the Far East Department of the Foreign Office, under Gregory, because I know China well. I gave up my post after the war. I did not hold the post when I was gambling. I had a house, where I entertained many visitors, including Gregory. The excitement was intense, and I almost lived on the telephone, buying and selling many millions of francs on a single contract.”

The ‘ Morning Post,' in an editorial, states; 11 The position is that certain highly-placed officials in the Foreign Office are stated to have been speculating on the course of foreign currencies. Such a statement, involving the honor and reputation of the Foreign Office, could not possibly be allowed to pass. It is only fair to remember that there may be a complete reply, but nothing short of an inquiry can abate the public uneasiness or vindicate the dignity of the service, which has always been regarded as above reproach and suspicion.” (Deceived February 3, at 11 a.m.) The Government inquiry in the Dyne case has opened. The proceedings were in private, and are likely to last for a fortnight. The Board of Inquiry will report to Mr Baldwin, and Cabinet will decide whether or not it will be published.