Lord Milner: I think it would be better if you made a proposal on this point.
General Smuts: Our proposal generally would be: that all interest which became payable during the war be added to the principal sum, and that the payment of the principal be put off until twelve months after the conclusion of the war.
Lord Kitchener: Is it necessary to have this as a proposal?
General Smuts: If the Government is prepared to meet this difficulty it is unnecessary to make a formal clause of it in the draft agreement.
Lord Milner: According to my view our Government makes certain promises in this document, and I am of opinion that all promises to which reference will later on be made must be embodied herein. Any matter on which it is desired to bind the Government must be in this document and not outside it. I will not say that I want further clauses, but above all I wish to prevent misunderstanding.
General Smuts: In that case we are prepared to propose a clause to meet this difficulty.
General Botha: We raise this point so that early measures may be taken if we come to an understanding. If a great portion of the population become subjects of His Majesty, it is to the interest of everyone, especially of the Government, to see that these people are not ruined. They will be thrown on the Government, who will have to care for them. If we do not take any steps now then speculators who have bought up debts will demand payment immediately after peace is concluded; and as soon as the courts of law are open they can sue the debtors, and we want to guard against that.
Lord Milner: I agree with the Commandant General that this is the view which I take of the matter, and that as soon as these people become subjects of His Majesty they must be cared for. But I think it is neither necessary nor advisable to lay down in all particulars the way in which His Majesty's Government must care for these people. I think that there is perhaps an idea—perhaps a natural idea—that because we have fought the burghers therefore when peace is concluded there will be a feeling of enmity towards them. The contrary, however, is the truth. From the moment hostilities cease our desire would naturally be to try to gain the confidence of the burghers, and to attend to the interests of the people. But if we must bind ourselves beforehand with reference to the manner with which we shall deal with all sorts of complicated legal questions, this will certainly lead to misunderstanding. Naturally if a certain amount of confidence is not reposed in us, that we shall try to be a just government, and try to keep the balance even between the various classes of His Majesty's subjects, then all I can say is this: Put in writing all that you can possibly think of, and let us submit it to His Majesty's Government and see what they think of it.
Chief Commandant de Wet: I hope it will not be presumed that we sit here to bind the hands of His Majesty's Government. Sufficient other points will continually crop up by means of which the Government can gain the confidence of the population. But with reference to the financial condition of the burghers who have been entirely ruined, we feel ourselves obliged to make some arrangement which will be a weapon in our hand when we return to the delegates.
General Botha: I do not quite understand Lord Milner. I did not understand from Chamberlain's telegram that we should make new proposals to bind your hands. I understood that proposals should be made with the object and the wish to secure peace.