General SMUTS: As history teaches us, it has happened before that questions were solved by compromises. And this draft proposal is as near as we can come to colonial government. Lord KITCHENER: Do you accept the annexations? General SMUTS: Not formally, but I do not understand that this proposal would be in conflict with the annexation proclamations. Lord KITCHENER: I fear that my mind is not clear enough to understand this. There will have to be two Governments in one State. And how do you propose that the government should be carried on? General SMUTS: A fuller explanation would have to be given to the word _supervision_; and I thought that this was exactly the point which could be further discussed, and on which we could negotiate. Lord MILNER: I shall certainly not depart from a clear basis to accept a vague basis. Lord KITCHENER: I feel convinced that your proposal could never be carried out in the practical government of a country. Chief Commandant DE WET: I am also of opinion that our proposal is not developed, just as little as the Middelburg proposals. This was clearly intimated by Lord Kitchener and Lord Milner when those proposals were made; and they were only considered as a basis on which we could negotiate, so that the matter could be set going. We naturally cannot bind the British Government to accept our explanations; but it is in any case a basis. Lord MILNER: I am very anxious that these discussions should not end in smoke, and would not allow any formal point to stand in the way; but to depart from the definite proposals of Middelburg (March 7th, 1901) to a thing like this, and to begin discussions anew thereon on something that is very vague, will certainly land us in difficulties. I believe that we are entitled to hold you to the Middelburg proposals, which we can modify as far as details are concerned. General BOTHA: Perhaps it will be well that you first reply to our proposal. Chief Commandant DE WET: I understand that unless Your Excellencies are prepared to give a final answer to our proposals it would not be unreasonable of us to request that you first submit them to your Government. General BOTHA: We have come here with the earnest desire to conclude peace, and I think that if our proposal is developed Boer and Briton will be able to live here side by side; and I assume that it is the desire of both parties not to suppress one race. We wish to conclude a peace, with which both parties are satisfied, and which will be permanent in South Africa. Lord MILNER: Our object is the same. Lord KITCHENER: Your proposal will cause important alterations in our proposals, to which we, in my opinion, cannot agree. General BOTHA: I think that especially because a proposal has been made from your side you must give a decided answer to our proposal. Lord KITCHENER and Lord MILNER: Then alter your proposal into ours.