DRAFT.

77

Jafferwand, Spurred on by the Military at a later date.

6. It will be observed that Mr. Fleming also contends that the arrangement is unfair if the Colony is to contribute the whole value of the old site toward the cost of creating surrendered lands for buildings or a new site, and is so to provide the new site for which in its turn the Colony might be required to pay. Lord Knutsford considers that there is much force in this objection, and that it would only be just that in estimating the cost of new buildings the Colony, if it were required to contribute the whole value of the old site, should be credited with the value of the new site.

But if, as suggested above, only the value of the military interest in the land is calculated under the Circular of June 1890, this further question is of less importance.

7. I am to take this opportunity of drawing attention to the correspondence between the War Office and the Admiralty printed at pages 36-38 of the papers which accompanied your letter of the 31st of May.

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