CO129-283 - Acting Governor Major Gen Black - 1898 [5-6] — Page 312

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low that such obl1,

agreement.

bligațion can arise only under some special

16. At present no such special agreement exists which is binding on either side. This leaves the Government

free to enter into a special agreement concerning any site

required for military purposes. And I submit that the price

named by Mr.Ormsby should form part of the special agreement

under which the lot below the Bowen Road Hospital should be

granted to the Military Authorities.

I further submit that not a square inch of the

site should be granted and that no possession should be per-

mitted to the Military Authorities until definite terms of

agreement are entered into. It is not reasonable to allow the

land to be possessed on a condition that its price is to be

settled after possession has been given. That is not the way

in which ordinary business is transacted; and no reason sug-

gests itself why the Government should part with an asset

except at the same price as would be charged to a private

purchaser.

-2

17. The history of the land transactions be-

tween the Colonial Government and the Military Authorities

since the date of the Circular despatch regulating the mode of

accounting, shows that the Colonial Government is credited with having parted with capitalised Crown Rents to the extent of $10,508 and is debited with having acquired land worth $42.93,or a dead loss of $10465.07 in less than 5 years.

18. It accordingly behoves this Government

to do its utmost to get cash value for all lands granted to

the