75
DRAFT.
&
the
Money
4. This contention appears to Lord Knutsford to be well founded, and it seems to his Lordship that no arrangement will be possible under the Circular of 9 June 1890 until a decision has been arrived at as to the relative shares of the Home and Colonial Governments in the value of the land. All these sites are colonial assets, and are valuable to the Colony though not immediately available for its use: On the other hand the military authorities occupy them gratuitously and will continue to do so as long as they are required for military purposes. Under these circumstances it is evident that each has an interest in the land, which should be capable of assessment, and it can hardly be expected that the Colony should account to the Military for its own interest in the land value of £3
6. The same question is raised or will be raised in other colonies, and it seems to his Lordship most