understand how it could have been refused
in the Middelburg proposal. That it should be granted now is only
reasonable. But as regards the payment of receipts, although it was
allowed then up to a certain amount, it is now withdrawn. At this
present stage of the proceedings I think that a point which had already
been practically conceded in the previous negotiations should not be
allowed to form a stumbling-block to a final agreement. I believe that
the amount is only small; I was for one year in conjunction with De la
Rey in command of the forces of the South African Republic. During that
period of time an account was kept of all the receipts, and only a short
time back the books were still in our possession. These receipts were
issued in an orderly manner, and each of them was duly entered in a
book, as far as I was able to judge. These receipts amounted to quite a
small sum; and although Lord Milner would draw back if the sum was very
big, the question how far he will go can be settled when the proposal is
accepted. Yet I personally think that there are no grounds for fear, and
the amount is really far smaller than you imagine."

Lord Milner: "I do not think it is so much a question of amount. This
paying of notes and requisition notes appears to me very unreasonable. I
believe that in this matter I am only voicing the opinion of the great
majority of the British nation when I say that my countrymen would much
prefer to pay a large sum at the conclusion of hostilities with the
object of bettering the condition of the people who have been fighting
against them than to pay a much smaller sum to meet the costs incurred
by the Republics during the war. Whether such a view is right or wrong,
it is a view you have to reckon with. We do not wish to pay the accounts
of both parties; and my opinion of the clause quoted from the Middelburg
proposal is that that clause was one of its faults. But should anything
of the kind become necessary, then I think that the paying of the notes
is less objectionable than the paying of the requisition notes. I placed
this point about the payment of notes in the draft because I thought
that if it came to a choice between paying one or the other you would
prefer that the notes should be paid. However, if it should be thought
better to return on this point to the Middelburg proposal, although I am
greatly against the clause, I will waive my objection to it if Lord
Kitchener is agreeable."

Ge