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breach of the conditions upon which the Legislative Council passed Ordinance 1 of 1901 to require it to do so.
The land at Stonecutters exclusive of (a) Military Land (b) land occupied by batteries and buildings but never transferred to the War Department, and (c) the site of the old Gaol and Gunpowder Depot, comprises an area of about 124 acres.
There is an abundance of good stone in this area and the Colonial Government might derive a large annual revenue from the lease of quarries in it which could be worked without interference with or risk to the Military Defences.
Now there is at the East end of the Island a hill formerly reserved for a battery, I believe, but never put to any use by the War Department. This area adjoins the site of the proposed new Gaol and as the latter will require extension if the Colony grows as I expect it to, it would be very convenient if this area or some portion of it adjoining the Gaol site could be transferred to the Colonial Government.
If the War Department will give up this area, or a portion of it, or an area to be hereafter mutually arranged upon on the West side of the Gaol site, I have no objection to transferring the remainder of the Island outside the old Gaol site to the War Department although the latter get very much the best of the bargain.
It seems to me very shortsighted to hand over to the War Department every square foot of Stonecutters Island when it is almost certain that the Colonial Government will in the future require more land there itself.
11.
Paragraph 4. I will not discuss this matter further