96
...
The consideration of these proposals was in some degree interrupted by the long discussion which arose as to the terms on which Colonial Military lands should be surrendered by the War Department to the Colonial Government. Colonial Military Lands are lands either reserved on the first occupation of a Colony or made over since as a free grant by the Colonial Government, the fee simple of which is held to be vested in the Crown represented by the Colonial Government, while the War Department has a right of perpetual user for purposes of defence. The settlement arrived at was embodied in the circular despatched by the Colonial Office to Colonial Governors on the 30th December 1894. In this circular, read in conjunction with the previous circular of the 9th June 1890, it was laid down that these properties should be regarded as a permanent defence fund of the Colony, the integrity of which ought to be preserved in kind or value even though the original lands themselves may be diverted to civil purposes.
Accordingly when such lands ceased to be useful for military purposes and are in consequence surrendered by the military authorities their value should be treated as forming a capital applicable to providing lands or buildings which may be required in the Colony for such purposes. Their value so treated would be their full market value at the time, and the Colonial Government would receive the same reversionary rights over the new lands or buildings provided in return as it held over the old ones. The circular provided for a...