Her Majesty's proposal is that the cost of this new armament shall be borne by the Imperial Government; & the cost of the works by the Colonial government, and I trust that the Legislature will agree that this is a fair and reasonable arrangement.
4. The Expenditure might be spread over two years, £4000 being provided before 31st March 1898, and the remainder before 31st March 1899. I am assured by the Local State that the possibility of utilising the existing works as much as practicable will be carefully considered and that every endeavour will be made to keep down the cost thereof.
5. I have to add that there are various new services of the nature of Barracks or for the completion of existing defences which will have to be executed at an early date; these were not included in the Estimate.