CO129-342 - Governor Lugard & Public Offices - 1907 [11-12] — Page 431

426

Teas

16492

92.

Under

being retained and producing an annual rent.

terms of Clause 6 of Lord Ripon's Circular this

interest, which the Colony retains and does not offer

for sale, should be valued and the market value entered in the account to the debit of the Colonial Government.

3. The transaction with which Sir Henry is

dealing does not amount to a sale of the fee simple

but is simply a lease with a premium, and the fee simple

in reversion would remain in the Colonial Government.

In order to comply with Clauses 4 and 6 of Lord Ripon's

Circular it would appear to be necessary to sell the

leasehold interest in the open market as proposed and

debit the Colonial Government with the premiums

realised, under Clause 4.

At the same time the capital sum representing

the present value of the annual Crown rents should be

ascertained and debited under Clause 6, thus accounting

for the total value of the fee simple.

4. In this connection I am to refer you to the

letter dated 17th August 1892, No. 12090/122392/92,

addressed by the Treasury to the Colonial Office and

subsequent correspondence, which decided that the

Colonial Government must hold at the disposal of the

War Department the full market value of land surrendered,

as the War Department would not be able to obtain new

land for less than its full market value.

For land

provided