....
303
low that such obl1,
agreement.
bligațion can arise only under some special
16. At present no such special agreement exists which is binding on either side. This leaves the Government
free to enter into a special agreement concerning any site
required for military purposes. And I submit that the price
named by Mr.Ormsby should form part of the special agreement
under which the lot below the Bowen Road Hospital should be
granted to the Military Authorities.
I further submit that not a square inch of the
site should be granted and that no possession should be per-
mitted to the Military Authorities until definite terms of
agreement are entered into. It is not reasonable to allow the
land to be possessed on a condition that its price is to be
settled after possession has been given. That is not the way
in which ordinary business is transacted; and no reason sug-
gests itself why the Government should part with an asset
except at the same price as would be charged to a private
purchaser.
-2
17. The history of the land transactions be-
tween the Colonial Government and the Military Authorities
since the date of the Circular despatch regulating the mode of
accounting, shows that the Colonial Government is credited with having parted with capitalised Crown Rents to the extent of $10,508 and is debited with having acquired land worth $42.93,or a dead loss of $10465.07 in less than 5 years.
18. It accordingly behoves this Government
to do its utmost to get cash value for all lands granted to
the