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(v) It is understood from paragraph 3 of your letter that
the Colonial Government raise no objection to the transfer, but the Army Council would prefer to leave, for further consideration as may be necessary, the question whether the transfer should be recorded in a three-party agreement (as in previous cases) between the War Department, the Colonial Government and the Admiralty, rather than under the procedure indicated in paras.202 and 203, Regulations for Engineer Services, 1924.
(vi) It is also understood that the proposed move will involve
the surrender of Lellet's Island by the Admiralty, and that it is suggested that this surrender should take place direct between the Admiralty and the Colonial Government, who will pay a sum of two million dollars for this property together with that comprising the Naval Arsenal Yard. I am to point out in this conne c- tion that Kellet's Island appears to have been trans- ferred to your department in 1921 by a three-party agreement, and the question of the disposal or surrender by the naval authorities will need to be considered in the light of that agreement, and possiblj also of the arrangements relating to Colonial Military Lands. The military authorities would probably not be able to dispense with the existing ammunition stores on the Island until the new Army Magazines are con- structed.
As the present question is urvent the Army Council are not delaying their reply while investigating the points raised in (v) and (vi) above, as to which a further communication will be addressed to you as soon as possible. Meanwhile, before the necessary instructions are sent to the local military authorities, I am to ask for an assurance that no difficulty will arise with regard to paras.(1) to (iv).
I am
sir,
Your obedient Servant,
(SGD) A.E.WIDŁOWS.