There exists no question arises; the dispute relates to lands which are admittedly not required for military purposes, which the Colonial Government desires to utilize for Civil purposes, but which the military authorities decline to give up unless the Colonial Government admits a liability for the full market value to be paid either immediately, or in the future according as other military works or buildings are now or may hereafter be required for the defence of the Colony.

3. Owing to the fortification in recent years of various and other important Coaling stations situated in various Colonies, Her Majesty's Government have had to consider the amount which each of these Colonies should contribute annually towards the cost of the garrison required for these fortifications. And in connection with this question an agreement was come

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