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dence,
and 414.
A 414.
3. The consideration of these proposals was in some degree interrupted by correspon- the long discussion which arose as to the terms on which Colonial military lands should be surrendered by the War Department to the Colonial Government. A 246, 303, Colonial military lands are lands either reserved on the first occupation of a colony, or made over since as a free grant by the Colonial Government, the fee simple of which is held to be vested in the Crown, represented by the Colonial Government, while the War Department has a right of perpetual user for purposes of defence. The settlement arrived at was embodied in the circular Page 8 of despatched by the Colonial Office to Colonial Governors on the 30th December 1894. In this circular, read in conjunction with the previous circular of the 9th June 1890, it was laid down that these properties should be regarded as a permanent defence fund of the Colony, the integrity of which ought to be preserved in kind or value, even though the original lands themselves may be diverted to civil purposes. Accordingly, when such lands ceased to be useful for military purposes, and are, in consequence, surrendered by the military authorities, their value should be treated as forming a capital applicable to providing other lands or buildings which may be required in the Colony for such purposes.
Their value so treated would be their full market value at the time, and the Colonial Government would receive the same reversionary rights over the new lands or buildings provided in return as it held over the old ones. The circular provided for a special account to be kept between the two Govern- ments, in which the value of any lands surrendered would be entered to the debit of the Colonial Government, and the cost of those provided in return, up to the said value entered to its credit. It expressly did not legislate for the further provision of lands by the Colonial Government beyond the value of those surrendered. Paragraph 11 states-"The foregoing proposal relates solely to the terms on which Colonial military lands in the hands of the War Department shall be surrendered to a Colonial Government. It does not affect the obligation of a Colony to provide other lands required within its borders for military purposes, whether under some special agreement or under the general obligation resting on every Colony to contribute according to its means to its defence.”
A 385 and 523.
4. The question of the cost of provision of barracks for the increased garrison was taken up again in 1892. Eventually the Treasury agreed to the Page 22 of original proposal made by the Committee of 1888, with the modification that, in the special circumstances of the Colony, the condition as to free provision of sites should be waived.
A 385.
The agreement arrived at was, therefore, that the full market value of the Colonial military lands and buildings, surrendered by the War Department, would be applied in reduction of the gross cost of the new scheme of works, including new sites, and that the remainder of the cost would be divided between Imperial and Colonial funds, in the proportion of two-thirds to the former and one-third to the latter. The gross cost of the scheme was estimated at 211,000l., or 1,339,536 dollars, in December 1894, and it was Page 19 of proposed to spread the scheme over 10 years; but as it was subsequently con- sidered advisable to press on with the works as soon as possible, and the Colony refused to pay more than a contribution of one-thirtieth of the gross cost in any one year, it was decided that the War Department should execute the whole of the works itself as quickly as possible, and the Colony make an annual contribution, for 10 years, of 45,000 dollars, which was about one-thirtieth of the total cost. The payments by the Colony began with the year 1896, and should therefore continue until 1905.
A 385.
5. It must be observed that up to the present the War Department has not been in a position to surrender any lands to the Colony, so that the portion of the agreement relating to the reduction of the gross cost of the scheme by the value of the surrendered properties is not operative, and practically it is the gross cost that is being divided in the proportion of one-third and two-thirds. The execution of this scheme is now in progress, but is not yet completed. Some land has been already acquired by the War Department for services included in it. In these cases the War Department has paid for the interests of private individuals, where necessary, and included the amounts in the gross cost for purposes of division. But in more than one instance the
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