Lord Milner: I see no difference between these receipts and requisition notes, and, besides, it is for an unlimited amount.

General Smuts: These receipts were issued under an entirely different law. They were not paid out of the credit voted by the Volksraad.

Chief Commandant de Wet: I wish it to be plainly understood that I fully agree with what has been said by the Commandant General, that the honour of every officer is affected by these documents. And if Your Excellencies agree, you give us a powerful weapon with which we can return to the Delegates.

Lord Milner: The proposal is, in fact, that the British Government must pay all the money borrowed by the Republics to fight them.

Chief Commandant de Wet: But we were an honourable party in the fight, and if we cease to be a party, it is only reasonable that we are met on this matter.

General Botha: Must I understand from your attitude that we must hand over everything, and that you must walk off with the assets of our country, which amount to millions and millions, and take no responsibility on yourselves for the debts? We are acknowledged by you as a belligerent party, and, therefore, we have the more right to expect that if you walk off with the assets of the country, you must also take upon yourselves the responsibility for the debts; if the British Government attains its great object, then a minor matter like this ought not to stand in the way. We do not come here to haggle at little things, but to contend for something that is an actual difficulty, and you must agree that if we tell you something here, we really mean it. And if we wish to make peace, every one must not draw his own line, but we must take each other by the hand. Now we say that this matter stands in our way. We personally have not signed so many receipts, but the inferior officers who have signed the most mainly constitute the meeting at Vereeniging. In some cases special persons were appointed entrusted with this work.

Lord Milner: We do not take over the assets of the country without its liabilities. We take over all the debts which the country had before the war, and we have even agreed to take over a debt—a lawful debt—in the shape of notes, the contracting of which we are aware was necessary only on account of the war, and therefore we already pay a share of the expenses incurred to fight us. I thought that this was a very great concession, and when I agreed to put it down, I said that I thought, and I still think so, that the British Government would take exception to it, although I hope that they will not do so. But to go further than that and to ask that we shall pay not only a debt incurred for the purposes of the war, but every debt incurred by every officer of both armies for the purpose of fighting us, is in my opinion a very extreme proposal. In reply to what General Botha has said, I must say that the Commission appear to think that we have no one behind us whose feelings and prejudices (if you wish it) we must consider. If this will cause you difficulty with your burghers, the proposal now made will, I am sure, cause the British Government the greatest difficulties with the people whose feelings they must consider.

Chief Commandant de Wet: I would like to explain the position of the Orange Free State. In the Transvaal a law was passed authorising the Government to issue £1,000,000 in notes. In the Orange Free State this was not done, because the Government had the right to pay with receipts, and we thought that a receipt was as good and lawful as the notes. And therefore these matters have the same importance for me.

General Botha: I don't think that we should be so technical, especially not in your case, because our being together here is with the object of causing hostilities which involve great expenditure of money every month, to cease, and our meeting can have the result of speedily putting an end to these costs. And therefore, by accepting our proposal and paying the receipts, you will greatly reduce your expenses. It will be much cheaper to terminate the war by co-operation than to let the negotiations be broken off; and therefore I think that we must accede to points which stand in the way.

Chief Commandant de Wet: I can give His Excellency Lord Milner the assurance that the idea always lived with the people that, even if everything was lost, they would still, after the war, receive the money in payment of the receipts. And therefore if this is not conceded I cannot conceive what the result will be. I fear that result, and hope that you will try to obviate it.