Hi Herbie,
Dawes sizing seems to be larger than a lot of other make of bikes and if you were to use their online sizing this would probably be the size that they recommend. However, looking at her measurements, I would probably advise that this bike would be on the big size for her. I am 5 foot 5 1/2 inches. My inside leg measurement is 29 1/2 and my arm length from pit to wrist is 19 1/2 and although the frame is ok for me height wise, the stretch to the bars feels too long. I could quite easily sell the bike to you, but in all honesty I think your friend would end up with the same problems as myself. You could take on board all the welcome suggestions I have received on this forum to adjust this measurement such as replacing the seat post to a straight one rather than a laid back one and moving the saddle forwards a little, changing the stem or changing to compact bars with a shorter reach and drop measurement.
I think your best bet is to see if you can find a local Dawes supplier where she could try out the ladies version in the size 43cm, which of course is white. I don't know how the frame geometry differs (if at all) from the men's version though. If you found that frame too small, then of course this would be the next size up and would be fine. Please let me know if you do decide to go for this bike.
When looking out for a bike for smaller ladies, it is critical to be aware of the top tube size as well as the stand over height. Most touring bikes are made for the average male and unfortunately women often have shorter reach than a male of the same height.
Best wishes.
Jackie