CO129-367 - Acting Governor May - 1910 [6-7] — Page 239

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Olan

sale of land bought and paid for is taken by the Imperial

Government and not placed to their debit in the account - in

fact the system of accounting is not applied at all to such

lands. The contention of the Army Council that because the

Colonial Government has gained an incidental advantage by the

revival of the Crown Rent, the capital value of this gain must

be put into the account is an attempt to get applied to one

category of lands a system which according to the Circulars was applicable only to the other. As soon as a departure is admitted

from the plain terms of a written document the possibilities

of differences and disputes is enormously increased and there

is no telling where claims based on analogy will end. For this

reason resistance to this claim is a matter of principle.

The revival of Crown Rent is not the only

benefit that accrues to the Colonial Government by reason of

lands in Military occupation being sold to private individuals.

The Colonial Government gets rates and taxes from the land and

various rights over the land, viz.:- that of expropriation,

which may be turned to profitable use. If the claim is admitted,

the War Department could on the same principle demand the capi-

-tal value of all the various rights which revive on the land

being sold.

If instead of following the plain meaning

of the Circulars the accounting system is in future to be

applied to purchased lands by analogy, it will be found that an

analogy as cogent as that advanced by the Army Council with

regard to Crown Rents revived on the sale of purchased lands,

will require the Imperial Government to bring into account the

price received on the sale of purchased lands.

The general principle stated in the

Circulars on which the system of accounts is based is the

obligation of the Colony to maintain defence fund intact and to

this end a debit and credit account is opened wherein are

recorded all transactions in land between the Imperial Govern-

-ment