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monies expended on the lands while in Military occupation and

left it to the choice of the Colonial Government to hold or to

sell at once (v. par. 5 Circular 1890 and paragraphs 4 and 6

Circular 1894).

It is also obvious that it was considered

that the application of this principle to lands purchased and

paid for by the Imperial Government would be inequitable and

accordingly it is laid down specifically that the scheme should

not apply to such lands (par. 5 Circular 1890). With regard to

purchased lands it might have been provided that the difference

between the selling price and the original purchase price should

be received or paid by the Colonial Government but this was

not done and paragraph 8 of Circular 1890 provides that the

value of such lands when sold or transferred is to be credited

to the Imperial revenue. The plain effect of the language used

and the obvious intention is the same, namely that in respect

of such lands the Imperial Government is to get the whole

benefit of any appreciation in value and of any improvements

that have been effected while the lands were in Military

occupation and as such lands are not to be surrendered and the

Colonial Government is to have no portion of the value, but on

the contrary if the Colonial Government requires the land for

civil purposes,

it has to pay the value to the Imperial Govern-

-ment, the Colonial Goverment is to receive any incidental

advantage, which may accrue to it, by the transfer of such lands

from Military to private occupation.

It cannat be imagined that the fact, that in

a large number, if not the majority of the Colonies affected,

land is usually held on lease from the Crown and not in fee

simple, was not present to the minds of the authors of the

Circulars the fact that fee simple is referred to proves

nothing, because it is only referred to as a basis for walua-

-tion (v. par. 4 Circular 1894). To arrive at the value of land

on lease from the point of view of the War Department who hold

the

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