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faith of the General Officer.

The matter is, however, an

important one and, in view of the possibility that Sir

Andrew Caldecott's unrecorded statement on this occasion

may have been misinterpreted I feel that it requires further

investigation. I enclose a copy of my letter.

7.

Naturally I should feel bound by a promise made

by my predecessor and if it should prove to be the case

that he offered this area to the War Department as a free

grant, except for cash expenditure, I should be prepared

to submit that proposal for your consideration. Alternatively,

if there has been some misunderstanding, I regret that I

can not recommend any departure from normal procedure in

this case. There is very much to be said for such

transactions between the Imperial and Colonial Governments

being put through on ordinary business lines: if special considerations are to be imported especially in cases of

such magnitude as this I am sure that in future the

settlement of such issues will be increasingly embarrassed.

For example, as I have stated above, the undertaking attributed to Sir Andrew Caldecott and discussed above was quoted to me

as a precedent in a similar application, which, in fact, I have refused. Furthermore, personally I am not impressed by the argument that the grant should be free because it is

for a hospital. It appears to me to be no less important to

maintain a soldier in health than to cure him when sick, and

on that assumption an equally strong case could be made for

the free grant of land for barracks.

8. A copy of this despatch has been sent to the

General Officer Commanding.

I have the honour to be,

Sir,

Your most obedient, humble servant,

1. Art. Northest

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Governor.

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