Lord KITCHENER: Would L2,000,000 or L3,000,000 meet you? We want to have a limit, so as to know what to do. Chief Commandant DE WET: It is impossible to fix an amount. Lord KITCHENER: If you could fix a limit it would clear up the matter. Chief Commandant DE WET: With that I fully agree. I appreciate your standpoint, but it is an absolute impossibility to name the amount. Let us withdraw for a moment to discuss this point. The meeting then adjourned and met again at 2.30 o'clock. Chief Commandant DE WET: We have agreed to fix an amount of L3,000,000 for Government notes and receipts, which can be reduced _pro rata_ if this amount is not sufficient. We have drafted a clause to submit to you. General Smuts read the draft, which is embodied in the last paragraph of Clause 11 of the draft agreement. (See p. 117.) In reply to Lord Kitchener: Chief Commandant DE WET said: The prisoners-of-war on the various islands who hold such notes ought also to have the opportunity for presenting them. Lord MILNER: What is your next point? We now understand what your views are on this matter. General BOTHA: Must I understand that we pass from this point? Lord MILNER: That document contains your views which we now know. General BOTHA: We must know what we must say to our delegates. Lord KITCHENER: Is that the only point or will other points be raised? General BOTHA: There is another point with reference to the protection of debtors. This is a serious, a vital question for us. Lord MILNER: There must be a good understanding between us.... Let everything be embodied in one document. General SMUTS: Most of the debts incurred before the war will be payable at the conclusion of the war. And, if the debtors cannot pay, we are afraid it will be ruination for a large proportion of the population. And we would like to see that steps are taken to prevent this. If Lord Milner intends to take such steps we should like to be informed what they are. 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.