518

desires the question of its indemnification for

These

the expenses incurred to be settled. Expenses are estimated by the Government at $78,500, viz $20,000

on

the buildings

at Stone cutter's Island, and $58,500 on the hulk to take their place

3.-

The Lazaretto building appear

to have been built in 1883, at which time

Military objection

no

seems to have been made

to their erection, but the circumstances at that time were

widely different to those now. The Colony appears to be fairly entitled to be repaid the cost incurred on these buildings.

As regards the cost of the hulk, I am not sufficiently acquainted with the terms of financial arrangements between the Colony and the Imperial Government, to be in a position to express an opinion

on this point: the Colonial Government has maintained from the first that the cost should be defrayed by the War Department, but I am unable to see on what grounds it is considered that this cost should be added to that

of the present building. The necessity for the Lazaretto from the present

He

In the War Department have been dealt with in my predecessor's letter of the 20th September 1888, 12903.

4.

removal

of

Site, and the value of Buildings

I concur entirely in the views therein expressed, except that I consider the present buildings would suffice, without any additions, to accommodate as many men of the Royal Artillery as it is desirable

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