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good road for motor traffic; and it was considered that the

wer conditions, pleaded by the promoters as a reason for

refusing to take up the concession offered, could be pleaded

with equal force by the Government as a reason for regarding

the offer as cancelled.

4.

The matter may be looked at from the

converse point of view. If the promoters had been willing to proceed, while the Government had refused permission owing to war conditions; and if after the termination of hostilities the Government had called upon the promoters to sign the agreement; it would seem that the promoters on their part could have successfully pleaded either obstruction on the part of the Government or the change in circumstances which

had been brought about by the war.

5.

The matter was carefully considered by

the Executive Council, and it was agreed that, apart from the question of legal obligation, it was expedient in the interests of the Colony that a development scheme on the lines which had been proposed should be proceeded with. I concurred in this view and I accordingly caused a letter, of which a copy is enclosed, to be addressed to the promoters.

6.

With regard to the final paragraph of that letter and to my telegram of the 7th, June, I may point out that the promoters are the firm of Messrs. Dennys and Bowley, Solicitors, and that Mr. Williams has no locus standi. It has been intimated to Mr. Bowley that it would be preferable if all negotiations could be conducted by the promoters with this Government and that Mr. Williams should not correspond independently with the Colonial Office. Then Mr. William left the Colony same years ago he asked me to be particularly careful to keep his name out of any correspond- -ence in connection with this matter, but in view of his

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