CO129-367 - Acting Governor May - 1910 [6-7] — Page 234

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ground rent on leasehold property does not give him the

reversion, as the Army Council contends, but only the right

to receive the ground rent during the remainder of the

term of years, the reversion remaining in the Lessor in

this case the Government.

4.

As regards the reference made by

the Army Council to Mr. Findlay Smith's property, I can

only refer again to Sir F. D. Lugard's Confidential DesTM

-patch of the 12th. of February, 1909.

5.

I trust that on consideration of

the further arguments now adduced the Army Council will

withdraw their demand. If they do not do so the only way

of settling the question that I can suggest is to submit

it, with the whole correspondence which clearly explains

the arguments on both sides, to the arbitration of an

impartial authority such as a Judge of the High Court in

England.

6.

I take this opportunity of in-

-forming Your Lordship that the property known as Spring

Gardens has been sold for the sum of $50,000. In 1862 all

Crown Rents fixed in sterling were converted into dollars

at the rate of 4 shillings and 2 pence to the dollar. The

Crown Rent was accordingly fixed in dollars at $720 per

annum,