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Colonial Government or any lessee, the sun by which the value of the building site is depreciated in consequence of the restrict- -ions or liabilities, is a reasonable and proper charge against the "Military Lands Account".
5.
0.
The account in question between the Colonial Government and the Military Authorities shows at the present time a balance of $35,588.72 in favour of the former. Ir. H. Bertram Cox in his letter (No. 26936/09) of 10th. January, 1910,
36836 to the Secretary, War Office, pointed out that the Military Authorities can only claim the user of lands for so long as they are actually required for purposes of defence. There are, how- -ever, several parcels of land which have long been disused for that purpose, and which should be handed back to the Colonial
The previously existing Government. This large debit has recently been converted to the small credit noted above, and if this credit be sufficiently augmented by the payment which I have in the preceding paragraphs shown to be due to the Colonial Government the latter would be in a position to take over all areas not actually used by the Military Authorities for defence or barrack purposes without becoming seriously indebted to the War Department.
6.
I contend that the principle which I have set out, should apply to lands included in the Lewis Agreement as "Reserves" and à fortiori to any lends asked for as "Reserves" or over which "clearance rights" are demanded, subsequent to that Agreement. I am advised that that Memorandum of Agreement referred only to the lands with which it dealt, and not to any trans- -actions subsequent to it.
7.
The greater part of the areas held as *Reserves" are either of no value at all as building sites, or are situated in such out-of-the-way and inaccessible places, as to be of small value, and I do not propose to raise the highly con-
-tentious question as to whether each of these areas does or does not include any possible building site, and if so what is its value. My present wish is to obtain recognition of the principle,
and