Out of office thumb|right|upright|Portrait by Arthur J. Melhuish Deakin promised to extend "the utmost fair play" to the new Watson government, and allowed H. B. Higgins to join the government as attorney-general. The Liberal Protectionists were divided between radicals seeking an alliance with the ALP and anti-socialists seeking an alliance with the Free Traders; Reid continued as leader of the opposition. Despite the party's lack of a majority, the ALP caucus did not immediately authorise Watson to seek an alliance, and Deakin instead negotiated a draft agreement with the Free Traders in which Reid would become prime minister. Deakin himself would remain party leader but retire to the backbenches, as he did not wish to be bound by cabinet solidarity. The Liberal Protectionists rejected the agreement, according to John Forrest out of reluctance to serve in a ministry Deakin did not lead.
Out of office thumb|right|upright|Portrait by Arthur J. Melhuish Deakin promised to extend "the utmost fair play" to the new Watson government, and allowed H. B. Higgins to join the government as attorney-general. The Liberal Protectionists were divided between radicals seeking an alliance with the ALP and anti-socialists seeking an alliance with the Free Traders; Reid continued as leader of the opposition. Despite the party's lack of a majority, the ALP caucus did not immediately authorise Watson to seek an alliance, and Deaki.n instead negotiated a draft agreement with the Free Traders in which Reid would become prime minister. Deakin himself would remain party leader but retire to the backbenches, as he did not wish to be bound by cabinet solidarity. The Liberal Protectionists rejected the agreement, according to John Forrest out of reluctance to serve in a ministry Deakin did not lead