98
of A.385.
the cost would be divided between Imperial and Colonial funds in the proportion of 2/3 to the former and 1/3 to the latter. The gross cost of the scheme was estimated at £211,000 or $3,339,536 dollars in December 1894, and it was proposed to spread the scheme over 10 years; but as it was subsequently considered advisable to press on with the works as soon as possible and the Colony refused to
pay more than a contribution of one thirtieth of the gross cost in any one year, it was decided that the War Department should execute the whole of the works itself as quickly as possible, and the Colony make an annual contribution for 10 years of $48,000, which was about
1/30th of the total cost. The payments by the Colony began with the year 1896, and should therefore continue until 1905.
It must be observed that up to the present the War Department has not been in a position to surrender any lands to the Colony, so that the portion of the agreement relating to the reduction of the gross cost of the scheme by the value of the surrendered properties is not operative, and practically it is the gross cost that is being divided in the proportion of 1/3 and 2/3. The
execution of this scheme is now in progress, but is not yet completed. Some land has been already acquired by the War Department for services included in it. In these cases the War Department has paid for the interests of private individuals, where necessary, and included the
Amount #