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4.
I would therefore request Your Lordship's
authority to pay from surplus balances or loan funds
the sums of $763,741 in 1931 and $1,000,000 in 1932.
I consider that this is the proper procedure as it is
anticipated that this sum will be recovered by the sale
of the land evacuated within a few years.
5.
As regards the question of the removal of the
Royal Naval Canteen, which although separate has been
considered to have a bearing on the present matter, the Trustees have now agreed to the proposed figure of $154,090 as compensation for the existing buildings and
provision for this, with a statement of future requirements has already been made on page 85 of the Estimates for
1930, item 42.
6.
This matter has to a certain extent been
complicated by the necessity of considering the question
of removing the Military magazines; but my Executive
Council has agreed with me that this may be deferred
for the present although circumstances may necessitate the continuance of the present use of the Naval Magazine
at Kellett Island for the storage of Military ammunition
if it is found that the Military Magazines proper are
insufficient for the purpose. It will doubtless be
possible to arrange by mutual agreement the terms on which,
after the surrender by the Admiralty of the Kellett Island
magazine to this Government, its use by the Military
authorities may be continued.
7.