CO129-434 - Governor Sir May - 1916 [7-8] — Page 121

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allow the existing buildings to remain until the new ones have been completed; to construct a sea-wall, with a depth of 16'4′′ alongside it below Ordnance Datum, enclosing the un-reclaimed area marked on the chart which accompanied your letter of the 26th of March, 1915, as Admiralty camber; and to fill in and

reclaim such un-reclaimed area.

Having regard to these facts I cannot conceive that any further demands could now be reasonably made upon the Colonial Government in connection with the exchange; and I would add that any proposal to extend the Arsenal Yard eastwards will involve interference with the rights of Marine Lot-holders com- -pensation for which cannot be fixed by the Colonial Government but must be referred to arbitration or to the Courts.

6.

I shall be glad therefore to learn that the Admiralty will see their way to abide by the arrangement con- -firmed in your letter of the 26th of March, 1915, and in my

letter of 20th March last.

I have, etc.,

(SD.) F. H. MAY,

Governor,&c..