By section 125 of the Constitution, the Seat of Government is to be determined by the Parliament, and shall be within territory which shall have been granted to or acquired by the Commonwealth, and shall be vested in and belong to the Commonwealth, and shall be in the State of New South Wales, and not less than one hundred miles distant from Sydney. The area is to be not less than one hundred square miles, and such portion thereof as shall consist of Crown lands shall be granted without payment.

By the Seat of Government Act 1908, section 4, it is provided that the territory to be granted to or acquired by the Commonwealth for the Seat of Government shall contain an area of not less than 900 square miles, and have access to the sea.

I understand that the Minister for Home Affairs has now come to an agreement with the Premier of New South Wales as to the area to be granted to the Commonwealth, and desires to be advised as to the next step that should be taken to fix the Seat of Government within the territory.

The Act of 1908, it will be noticed, merely provides that the district is to be Yass-Canberra, and the area not less than 900 square miles, etc.

I think the next step should be, quoting from a memorandum by Mr Wade when Attorney-General for New South Wales (see Hansard, Vol. 47, 1908, p. 269), 'to open negotiations for the grant or acquisition of that territory' by surrender by the Parliament of the State and acceptance by the Parliament of the Commonwealth under section 111 of the Constitution. In other words, the Premier of New South Wales might be requested to take the necessary steps under section 111 to pass the State Act for surrender.

It would be well if the draft of the Act were submitted to me for approval before its official introduction; and if desired, a conference between the Attorney-General of New South Wales and myself, or representatives of their Departments, might take place to consider the exact terms of the State and Commonwealth Bills.

The acquisition of the territory means of territorial not proprietary rights; so that, except in the case of Crown lands, the reversion of which, I take it, will pass to the Commonwealth, the proprietary rights of individuals will remain as before the surrender, subject thereafter to the exclusive legislative jurisdiction of the Commonwealth under section 52, sub-section (i) of the Constitution.

Should the suggested negotiations not prove effective for the purpose in view, the power to acquire the territorial rights without the concurrence of the Parliament of New South Wales still remains.

Should the Commonwealth, after acquisition or grant of the territory, desire to acquire, for public purposes, the proprietary rights in any of the land comprised within it, the provisions of section 51, sub-section (xxxi), may be exercised.

In suggesting a conference as to the terms of the Bills, I have in view possible questions as to rights of crossing, by railways or otherwise, the Federal territory, mutual access, etc., as to which there are no substantial difficulties.

I may say it has been decided under the United States Constitution that the citizens of the United States have a right of access to the capital which cannot be obstructed by the States.

[Vol. 7, p. 150A]