DRAFT.

53

3.

Following the precedent in regard to the cost of the existing Works and Armament, Her Majesty's Government propose that the cost of this new armament shall be borne by the Imperial Government, and the cost of the works by the Colonial Government, and I trust that the Legislative Council will agree that this is a fair and reasonable arrangement.

4.

The expenditure might be spread over two years, about £4000 being provided before 31st March 1898, and the remainder before 31st March 1899.

I am assured by the Secretary of State for War that the possibility of utilising the existing works as much as practicable...

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