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your remarks as to continued occupation of War Department land are not clear to us. Of course we quite understand that our acceptance of the terms of the Admiralty and Military Authorities does not bind the Government to sell the land.

The question of the terms of sale is of course another matter as to which we await your reply to our letter of 11th June applying for the ground coloured red and green in the plan accompanying that letter.

de Honourable

J.K.Stewart Lockhart, C.M.G.

{COLONIAL SECRETARY.

I have &c.,

(sgd). D. Gillies,

Chief Manager.

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