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the Military Authorities reserved to themselves all points which

it was necessary to hold for the above purpose.

5.

In paragraph 6, 7 and 8, His Excellency lays stress upon

the fact that the Colonial Government has received no money

payment for the land thus reserved, and that therefore the

Imperial Government has no rights over it.

If the War Department i.e. the British taxpayer, has paid nothing

still less has the Colonial Government.

6.

But this land having been taken as part payment of the

indemnity, surely all rights in it belong to the Imperial

Government.

7.

The Colonial Government appears to consider that the

War Department having met them in every possible way whenever

portions of this land were required for the legitimate expansion of the Colony, must still continue to do so, and also to hand over to the Colony a lump sum into the bargain.

8.

It also seems to consider that if the market value of

the ground had been paid in 1860, full rights would still remain

to the War Department.

The Military Reserve could scarcely have been worth £1 an acre

in 1860, so that the full rights could have been purchased for

£157.

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