Title:The Disc of Satellites: The origin of Counter-Rotating Tidal Debris Abstract: Using numerical calculations, we show for the first time that counter-rotating material is a natural occurrence in tidal interactions of disc galaxies. Model particles on both pro- and retrograde orbits can be formed as tidal debris in single encounters of disc galaxies of 1-to-1 and 1-to-4 mass ratios. Calculations are performed for a range of different initial parameters, interactions include fly-by and merger cases. The fraction of counter-rotating material produced varies over a wide range (from a few up to 50 per cent). All fly-by models show a similar two-phase behaviour, with retrograde material forming first. Properties of the pro- and retrograde populations are extracted to make an observational discrimination possible. Tidal-dwarf galaxies formed during such encounters will occupy the phase-space region of the tidal debris found in our calculations. This could be a reasonable explanation for the counter-rotation of the Sculptor dwarf galaxy with respect to the bulk motion of the disc of satellites. It would support the scenario of the MW satellites being ancient tidal-dwarf galaxies formed during an encounter of the young MW with another galaxy. A probable candidate for this galaxy is identified: the Magellanic Cloud progenitor galaxy, being in agreement with Lynden-Bell''s original suggestion for the origin of the dSph satellites.