under-mining right at such a
valuation. From your communication I understand that you suggest a
special method of valuation. That is a detail which can be settled
when the valuation is actually commenced, and which experts are
better able to judge over than I am. Therefore I shall say no more on
this subject.

FINANCIER AND AUDITOR.

On this subject our opinion was that the auditor should be
independent of the Government, and alone responsible to the Volksraad
to appoint as financier a man of standing, with a seat in the
Executive Council, to advise on all matters affecting finances.

I am glad to see that you are with us, and that it gives you great
satisfaction. I must express my surprise, however, over your proposal
that previous to the appointment this Government must first get the
approval of Lord Rothschild or any other capitalist. I can only
answer that it is in no wise the intention of the Government to frame
the future financial policy of this State on a capitalistic basis,
and thus your request cannot be agreed to. It is quite possible to
make such an appointment which will carry general approval without
being subjected to such a mutual condition.

LOAN, PRESS AGITATION, POLITICAL ORGANIZATION.

With reference to these matters, I have already made it plain to you
that in following the proposals of Mr. Lippert by cabling to your
principals, you acted under a misunderstanding. We requested no
binding declaration from you, only a moral understanding, which would
be easy for you to maintain, if it was in the interests of the
Uitlanders as well as the burghers of the Republic. I regret that the
mistake has arisen, otherwise I cannot see that any objection can
come from your side to approve of the plans of the President.

DYNAMITE.

On this question there is a small difference between the proposed
policy of the President and your answer.

I only wish to add that his Honour goes further than you do, as he
has declared his readiness to expropriate the Dynamite Company, under
agreement with its representatives, as soon as possible. If the
expropriation takes place after the expiration of the present
concession then it will naturally not be on the basis of a going
concern.

FRANCHISE.

On this subject I can well understand that you do not wish to take
upon your shoulders the responsibility of speaking and acting for the
whole of the new population. It was more your personal opinions as
men of position th