426
Teas
16492
92.
Under
being retained and producing an annual rent.
terms of Clause 6 of Lord Ripon's Circular this
interest, which the Colony retains and does not offer
for sale, should be valued and the market value entered in the account to the debit of the Colonial Government.
3. The transaction with which Sir Henry is
dealing does not amount to a sale of the fee simple
but is simply a lease with a premium, and the fee simple
in reversion would remain in the Colonial Government.
In order to comply with Clauses 4 and 6 of Lord Ripon's
Circular it would appear to be necessary to sell the
leasehold interest in the open market as proposed and
debit the Colonial Government with the premiums
realised, under Clause 4.
At the same time the capital sum representing
the present value of the annual Crown rents should be
ascertained and debited under Clause 6, thus accounting
for the total value of the fee simple.
4. In this connection I am to refer you to the
letter dated 17th August 1892, No. 12090/122392/92,
addressed by the Treasury to the Colonial Office and
subsequent correspondence, which decided that the
Colonial Government must hold at the disposal of the
War Department the full market value of land surrendered,
as the War Department would not be able to obtain new
land for less than its full market value.
For land
provided