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Sanatorium Victoria Peak, and on the offer of the building to the Colonial Government at the price of £800.

I was glad of the opportunity but thinking to recover the ground, but the sum named too high I proposed an independent valuation of the building.

As from its construction it would not be worth to the Colony more than the value of the materials. This resulted in fixing the amount at $1,425 (say £300) and, the Military authorities agreeing, money has been paid into the Commissariat chest and the land has been resumed.

The sum of $25, valuer's fee, was divided between this Government and the War Department.

I trust this arrangement will receive Your Lordship's approval, not merely being an arrangement by which the Colony may recover a larger sum by selling the building and the site, but also bring in connection with the position of the Military in reference to the Building - as, if sold by them without the ground, the materials would have been comparatively valueless - because the purchaser would have had to remove...

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