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the existing joint scheme, viz :- that the gross cost

of all buildings, inclusive of new sites, should be divided in the proportion of 2/3 to the War Department,

and 1/3 to the Colonial Government, and that this should

be applicable to all works costing £100 or more in each

instance other than what are strictly speaking defence

works, with regard to which a satisfactory arrangement

exists.

The Conference recognised that it would be very

difficult for the War Office to produce at present a

scheme of contemplated works which would be likely to be

final. But it was agreed that one should be prepared and

put to the colony as early as possible. It would be

understood to be not an absolutely comprehensive list,

but merely as designed to give the Colony some idea of

its additional liabilities in the immediate future under

the new arrangement.

2. In the agreement relating to the joint scheme

it was clearly intended that any actual cost of buying

land from private persons should be divided between the

two Governments, but nothing was said as to the method of

treating Colonial land, if required, or the Crown rents

on property let by the Colonial Government.

It was agreed by the Conference that the loss

to the Colonial Government, actual or prospective, of

Crown rents or premia on the sale of leases caused by the

lands being taken for military purposes ought in fairness

to the Colony to be treated as part of the gross cost of

the

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