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interests of the Colony.
8.
The power of acquiring limited rights over lands of prospective Military importance or for the preservation of clear fields of fire from permanent, provisional, or field works, or for purposes of manoeuvring troops is certainly of great value to the Military Authorities. It has been freely given to them by the Government of this Colony in the past as evidenced by the temporary reservation of 15 sites asked for by these Authorities in May, 1891. But if the Colonial Government is definitely assured, as it would be by the acceptance of the principle put forward by the Army Council, that the granting of such reservations means the permanent alienation to the War Department of the building value of the lands reserved, it would only under strong pressure assent in the future to parting with its capital. In this connection, the possibility, with the restricted area and rapid growth in population of the Colony, of every space which is flat or can be made so becoming a building site, and the considerable portion of the Colony's revenue derived from premia and Crown Rents for such sites cannot be overlooked.
9.
If the contention put forward by the Army Council is abandoned, I do not foresee any difficulty in the early settlement of all outstanding land questions between the War Department and this Government.
10.
Reverting to Sywan Hill, the subject of your Despatch under reply, I have the honour to inform you that of the three sites referred to in the War Office letter 2135 of the 13th June, 1904, as actual sites for defence works which should be excluded from the valuation of the area of the