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After his return, McIlwraith's relationship with his colleagues had detoriorated, and in August 1890 he formed an alliance ( later known as the " Continuous Ministry ") with his erstwhile foe to become Treasurer in the government of Sir Samuel Griffith.
In March 1893 Griffith stepped down to join the Supreme Court of Queensland and McIlwraith became Premier again.
His health was still poor and in October he resigned in favour of Hugh Nelson, contenting himself with the cabinet position of Chief Secretary and secretary for railways until 29 March 1895.

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