CAB11-57-2 — Page 111

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No. 11 in printed

corres-

pondence,

A 385.

It was agreed by the Conference that the loss to the Colonial Government, actual or prospective, of Crown rents or premia on the sale of leases, caused by the lands being taken for military purposes, ought, in fairness to the Colony, to be treated as part of the gross cost of the scheme. Consequently under the joint scheme, and, in future, in all cases if the general recommendation of the Conference is adopted, the War Department should make up to the Colony two-thirds of the value of the land thus lost to it, the Colony contributing the one-third as its portion of the cost. Steps should accordingly be taken to revise those cases referred to above, in which the capitalized value of the Crown rents on lands required for the joint scheme has been credited to the Colony in the account of Colonial military lands. These credits should be cancelled, and the War Department should make over to the Colony two-thirds of the capitalized value. In the case of land over which clearance rights exist, the value of the land, for purposes of division between the two Governments, should be the value, as subject to the clearance rights already held by the War Department.

3. Some doubts have been raised as to the tenure on which the War Department should hold these lands, the value of which would have been divided between the two Governments. The question would not arise until the War Department had no further use for the land and wished to dispose of it. In such case the Colonial Government should have the right to resume the land on payment (i.) of the actual sum originally contributed by the War Department towards the price of the land, and (ii.) of two-thirds of the agreed value at the time of resumption of the buildings.

In the opinion of the Conference, in cases where land has already been handed over to the War Department free of charge by the Colony, the Colony should resume possession without payment whenever the War Department have no further use for the land, subject to paying over to the War Department the then value of any buildings originally erected at the cost of the War Department.

4. When it is necessary to buy land from private owners, the rule, in the-- opinion of the Conference, should be that the War Department should not carry out the purchase itself, but should leave this to the Colonial Government, which possesses special powers of resuming land under a local ordinance, and could probably buy cheaper than the military authorities.

5. As was agreed in the case of the joint scheme (see War Office letter to Colonial Office, dated 24th July 1894), the plans and estimates for new buildings, of which the Colonial Government is to pay a part of the cost, should be submitted to the Governor. The War Office would consider any suggestions made by him, reserving to itself, however, in consultation with the Colonial Office, the decision on any points raised. The Governor should have a similar voice in the selection of sites.

The Conference desire, in conclusion, to record their appreciation of the helpful services of Mr. A. H. B. Allen, as Secretary.

A. H. B. ALLEN, Secretary.

29th July 1899.

C. M. WATSON, Colonel.

ROBERT CHALMERS.

GEORGE W. JOHNSON.

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