to be given for them (in lands re-transferred to the Colonial Government, or in money) together with the land acquired and all accruing arrangements in connection with the proposed Praya Junction and other issues related to the Harbour Department, should be finally dealt with by a Commission or Committee, having plenary powers, on which the Colony and the War Department should be equally represented.

There are a number of questions, many of them having a bearing one upon another, which cannot conveniently be settled separately, and which could probably not be so settled at all, without prolonged correspondence and delay.

Connected with the Magazine question, for instance, is that of a site in the immediate neighbourhood for the proposed Military Hospital, as to which I may remark that the site was not offered unconditionally, as the letter under reply would lead to be supposed; but only on certain terms which have not yet been acceded to.

This Commission: I may add that I have the same desire, as has the Colony, to act otherwise than liberally with reference to requirements for Colonial Defences. What is desired, however, is that there should be something like certainty and finality in respect of the nature and extent of the demands made upon us; and that some method should be adopted to enable them to be comprehended as a whole.

I am quite satisfied that by the proposed arrangement might be arrived at, satisfactory to both sides, in an incomparably shorter time, and with immeasurably less difficulty than will be otherwise involved; and I have little doubt that the contribution of the Colony would be larger, if required for all than under the existing system of separate and frequently

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