CO129-355 - Governor Sir Lugard - 1909 [1-3] — Page 123

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3.

With regard to the observations

Turo. 442021

Wo.

13515/45

made in the second paragraph of Your Lordship's Despatch

8

of the 18th. December, I concur in the contention of the

Army Council that when a lease is purchased by them and the

Colonial Government has received credit for the capitalized

value of the rent, then when the lease is sold the Colonial

Covernment should accept a corresponding debit.

The Council cite the case of the

Bowen Road Hospital Approach Road, but a closer parallel

is to be found in the case of Er. Findley Smith's land

referred to in the Colonial Office Despatch No. 196 of the

8th. August, 1895, where it was definitely laid down that,

when a lease is purchased by the Military Authorities from

a private person, the Colony has the right to take credit

for the rent which it foregoes. In both these cases this

Government has been credited with the capitalized value of

the rent, and when the properties are given up by the War

Department a corresponding value will be entered in the

debit side of the Colony's account.

In the case of Spring Gardens the

Colony was not credited with the capitalized value of the

rent, and if this case and the cases cited above are to be

brought into line the Army Council should now credit this

Government