Certain persons at Thursday Island state that they have discovered gold on a rifle range there, and have applied for permission to prospect their discovery.

The Defence Department has no objection to the application being granted, provided that the full use of the land for defence purposes is not interfered with, and that the Commonwealth is absolved from all liability in regard to risk or accident.

The rifle range is a transferred property under section 85 of the Constitution.

The Secretary to the Department of Home Affairs has referred the matter to me for advice as to whether there are any reservations to the State in the case of transferred properties.

I am of opinion that under section 85 of the Constitution, the whole property in the land transferred, including minerals, became vested in the Commonwealth without any reservation to the State.

Under section 62 of the Lands Acquisition Act 1906, mining leases or licences can be granted in respect of lands the property of the Commonwealth.

If it is considered desirable to grant any licence in this case, I think the licence should be prepared by the Crown Solicitor.

[Vol. 8, p. 344]