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it which in any way repudiates the arrangement arrived at between my Government and the local Military Authorities under date 13th August, 1900, of which a copy formed enclosure 2 in my Despatch No. 393 of the 28th August, 1900.

A reference to my Despatch No. 393 of the 28th August, 1900, and its enclosure No. 2 will show that the only exchanges of land agreed to by the parties and approved by me were the exchanges embodied in paragraphs (1) and (2) of enclosure No. 2. Paragraph (3) of that enclosure distinctly states that the exchange therein referred to was discussed, but reserved for further consideration.

I am at a loss therefore to understand the attitude of the Secretary of State for War as reported by your telegram of 25th October last. His threat that, unless this Government gives its assent to an exchange which was not agreed upon but was reserved for future discussion, he would withhold his assent to the other exchanges which were agreed upon and from which I have no wish to withdraw, is not unwelcome, because I have no doubt that this Government, in its endeavour to come to an understanding with the Military Authorities, acted generously towards the Military Authorities, and I am certain that it will be to the advantage of the Colony if the exchanges already agreed upon are repudiated by the War Office.

5.

As regards the 2nd paragraph of your Despatch No. 306 of the 18th September last, I would remark that the phrase "Military Reserve Lands" is not to be found in the Circular of 30th December, 1894, and that it is purely

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