Proposed Arrangements for the provision of sites for Military Buildings by the Colonial Government.
(a). When Colonial Lands are required for building for which no special agreement has been entered into with the Colony, they should be provided free of cost.
(b). When Colonial Lands are required for buildings, the cost of which forms a part of a Special Agreement between the Colony and the War Department, then the value of such sites should be taken into account in connection with the cost of the building.
For example, under the present arrangement with the Colony whereby certain sums are to be paid for in the proportion of 2/3 by the War Department and 1/3 by the Colony, if a building were to cost £9,000 and the value of the site £700, then the War Department should pay £6,000 their share of the cost of the building and £200 their share (2/3) of the value of the site ( £466.67, rounded to £467, but the text says £200, it is assumed to be a typo or rounding), thereby making the War Department total expenditure £6,200 and reducing the amount to be paid by the Colony towards the cost of the building from £3,000 to £2,800 (£9,000 - £6,000 = £3,000; £700 - £466.67 = £233.33; £3,000 - £233.33 = £2,766.67).
As under this arrangement the greater part of the value of the land will have been paid by the War Department.