WAR OFFICE
573
It is presumed that the sum mentioned in your letter represents a result of the same transactions, though possibly there may have been some slight difference in the method of calculation. If the account were to stand, an addition should be made to the balance of about 300 dollars, representing the valuation of a site for a Slaughter House for Indian troops in Victoria, which it was agreed in April 1900 should be provisionally credited to the account.
Mr. Brodrick however concurs in the opinion expressed in your letter that in view of the fact that practically no land has been surrendered to the Colony, the account given above should never have come into existence, and if the provisions of paragraph 11 of the Colonial Office Circular of the 30th December 1894 had been followed, it would appear that the above credits in favour of the Colony would never have been recorded.
In the opinion of the Secretary of State for War the transactions in question should have been governed by the following principles. In paragraph 35 of the Report of the Inter-departmental committee on Colonial Military Contributions dated 27th July 1888, it was laid down that except in very exceptional circumstances the Colony