}
C
29
Chatham), and the Chief Resident Engineer (Mr. E. S.
Lindsey) and it was agreed that there was no objection to
letting the ground referred to by the Chief Resident
Engineer provided the lease was limited to ten years. Sir
Henry May thereupon decided to offer the area referred to
on a 10 years' lease at a rental of $50,000, Government to
construct the necessary jetties the Company paying 7 per
centum on capital cost or if built by the Company the
Government to pledge itself to take them over on expiry
of lease. He directed that sites 2 and 3 should at the same
time be offered as permanent sites (viz., on 75 years*.
leases renewable for 75 years). Mr. Lindsey accordingly
made the offer verbally as regards the railway land, but
Mr. Chatham to whom the Company was referred in the matter
of permanent sites has not yet entered into any negotia-
-tions. The Company has as yet made no reply beyond
requesting that the offer made should be put in writing. I
have caused a reply to be sent to the effect that having
recently returned to the Colony I desire a little time to
consider these proposals.
4.
Although (as Sir Henry May points
out in a minute to me) "it has not been the policy of this
Government to restrict in any way the ownership of land for
commercial