Colonial Government has received no quid pro que from the

Military Authorities.

581

As an illustration of the position, I

may quote the case in which this Government has curtailed

building operations over areas leased to individuals. There is

no doubt that if such individuals built in defiance of the

restriction, the War Department would be helpless to prevent

such action and could not with any hope of success appeal to

the Law Courts on the matter.

7.

I also revert to the argument, which has

been placed before you on a previous occasion, that immediately

the Military Authorities express a readiness to exchange

Military Reserve Land for other land, they announce their

opinion that such land is no longer required for Military

Reserve Land, and admit that the concession or licence of

this Government is no longer of value to them. In such case

therefore, the Military Reserve Land, which always remained

vested in the Colonial Government, reverts automatically to

that Government freed from all restriction by the spontaneous

action of the Military Authorities.

But the Military Authorities base upon

their renunciation of what they are pleased to style 'rights'

a demand to be compensated, by the creation of Military

Reserve Lands or of War Department Lands elsewhere, for the

Military Reserve Lands which they have "released" from a

licence or concession conferred by this Government (which

received no consideration in the matter from the Military

Authorities), and clearly legally revocable by this Govern-

-ment

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