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lands for possible future Military requirements or the granting of their limited use for specific Military purposes does not convey to the War Department the building value of the lands, in the same way as it is conveyed when lands are acquired by that Department for its exclusive use. Colonel Lewis proposes that the * Colony's interest in the former class of lands should be kept alive by the annual payment by the War Department of a nominal
sua per acre until the lands are entirely released or purchased for exclusive use.
3.
Though the Komioon Military Reserves have not been in exclusive Military use the probable circumstances of their original acquisition are held to justify their being treated as Military lands and the War Department is credited with the building value of such parts as are surrendered to the Colony for building and commercial purposes. For that part of the area set aside as the King's Park which will continue as heretofore to be maintained as an open space (i.e. the whole area of the Reserves less the areas of Gun Club Hill, of Garden Lots (21, 48, 49 and 50 and of the King's Park koad and less 30.15 acres now definitely set aside for building purposes) half this value only is to be taken, on account of other lands having been made available to the War Department for the particular purposes to which the King's Park area was devoted, and this half value is only to be credited to the War Department in the event of the land ceasing to be used as a Park and so becoming a source of direct profit to the Colony.
The War Department claim to the building
4.
value of the Sywan Reserve, which was dealt with in my Despatch No. 368 dated the 18th. October, 1904, is abandoned, the Colonial Government making a free grant of a small part of the area
( 8 acres 1 rood 134 poles) immediately required for exclusive Military use. In place of the remainder of the reserve (130∙A) being made War Department property it is to be rented from the Colonial