CO129-354 - Public Offices & Others - 1908 — Page 161

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Government's interest in the land for Military purposes

a contribution by the Colony to its permanent defence

fund, the integrity of which has to be preserved in kind

or value by the Colony under paragraph 3 of Colonial

Office circular of 30th December 1894.

The Colonial Government, however, point out

that the property is not in the category of land to be

dealt with under the Colonial Office circulars of 1890

and 1894 and are of opinion that their waiving of the

Crown rent cannot be regarded as a contribution to the

Colony's defence fund.

The lease, having been purchased from Imperial

funds, will properly be dealt with as laid down in para-

graph 8 of the circular of 9th June 1890, and it still

appears to the Army Council that the capitalized value of

the Crown rent should be credited to the War Department

in the Colonial Military Lands Account. The existing arrange-

ment both as regards properties relinquished by this De-

partment and properties provided by the Colony is that

the value of the premium plus the capitalized value of

the Crown rent at 25 years' purchase is recorded in the

Account.

Although the sale has been postponed for the

present, the Army Council would be glad of His Lordship'a

opinion in the matter with a view to a decision being

arrived at.

I am,

Sir,

Your obedient Servant,