with
reference to receipts, the payment of them was partially acceded to,
and now it is withdrawn. I think that when we have arrived at such a
stage in the negotiations as we have now, then a point such as this,
which was as good as agreed upon, must no longer be a stumbling-block
to a final agreement. I believe that this amount is small. I was with
General de la Rey for one year in command of the half of the South
African Republic. Accounts were kept of all receipts, and where the
books are no longer in our possession they are in your possession. The
issue of these receipts took place in proper order and under proper
regulations, and books thereof were kept. As far as I have been able
to go into the matter the amount of receipts is really small. And
although Lord Milner recoils from the payment of an enormous amount
which may be presented for payment if our proposal be accepted, yet I
personally think that the fear is vain, and that the amount will prove
to be much less than you probably think.

Lord MILNER: I do not think it is so much a question of the amount.
This payment of Government notes and requisition notes is, in my
opinion, very reprehensible. I believe that in this respect I feel
what the great majority of the British people feels, that it would
rather expend a large sum after the war to improve the condition of
the people that has fought against them, than pay a smaller amount
towards the expenses incurred in fighting them. Whether this be right
or wrong, it is a strong feeling with which you must reckon. We do not
wish to pay the accounts of both parties, and the clause in the
Middelburg proposals with reference thereto was, in my opinion, always
one of the bad ones in that document. If something of this kind must
be done, then I think that the payment of the Government notes is not
so bad as the payment of the requisition notes. I put the point with
reference to the payment of notes in this draft proposal, because I
thought that if a choice had to be made between the payment of the
one or the other, you would consider it better that the Government
notes were paid. If it is considered better to go back to the
Middelburg proposals on this point, then, however much I object to it,
I would agree, if Lord Kitchener agrees.

General SMUTS: I fear that we cannot agree to that, because we
consider the Government notes indisputable.

General HERTZOG: I do not think that Your Excellency represents the
matter