CAS

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paid under the Defence Contribution Ordinance".

Nothing is known in this office as to the over- payment in question, but as the proposed method of adjust- ment obviates any cash payment from the British Treasury, it will, presumably, recommend itself.

(6) It will be noticed that the Pinewood property is not included in the valuation schedule, but the Colonial Goverment is very anxious to acquire it in connection with its scheme of road extensions, and there do not appear to be any special military reasons for retaining it, beyond the site of the moveable armament shed at High West. The unsuit ability of this locality as a residence for the G.0.C. and Staff Officers has already been pointed out on page 3 of the memorandum which accompanied Command letter of the 5th November 1921. As regards the value of this area, the Colonial Government asserts that the price fixed by arbitration in 1905 was actually greatly in excess of its commercial value, and that its present day overall value is less than half that figure. Under these circumstances, the offer to take it back at the price originally paid appears to be fair and reasonable and is recommended for acceptance.

III.

If the approwl of the army Council is given to the foregoing proposals, the Colonial Government is desirous of making an early start with the reconstruction of Gun Club Hill Barracks for the accommodation of one British battalion in order that Murray Barracks and Parade Ground may be handed over in due course as the first item in the programme. A plan showing the proposed lay-out of Gun Club Hill Barracks was forwarded with Command letter dated the 26th November 1920, and approval is requested to proceed on those lines. It is also requested that I may be informed whether it will be necessary to submit detailed drawings of all new buildings before actual construction is undertaken, in view of the fact that the Public Works Department have

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