Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe Commonwealth, in consideration of the surrender of the Northern Territory and property of the State of South Australia therein, and the grant of the rights in the Agreement mentioned to acquire and to construct railways in South Australia proper, shall:
To assume responsibility for State loans in respect of Northern Territory
(a) Be responsible for the indebtedness of the State in respect of the Northern Territory as from the date of acceptance of such surrender and shall relieve the State from the said indebtedness in the following manner:
I By annually reimbursing the State the amount of the annual interest paid by it in connexion with the loans in respect of the Northern Territory; by paying annually into a Commonwealth Sinking Fund the amounts which the State has undertaken to pay into such a fund in connexion with the said loans; and by paying and redeeming at or before maturity the said loans.
II By paying the amount of the deficit (or Advance account) in respect of the Northern Territory to the said State in such manner as may be agreed upon. If the amount cannot be agreed upon it shall be determined by arbitration.
Compensation for portion of overland telegraph line
Provided that, notwithstanding anything contained in the Agreement, the Commonwealth shall, if the Governor of the State of South Australia so requires, in lieu of being responsible for the indebtedness of the State in respect of that portion of the Overland Telegraph Line which is in the Northern Territory, compensate the State of South Australia for that portion of the line in accordance with section eighty - five of the Constitution.
To construct Transcontinental Railway
(b) Construct or cause to be constructed a railway line from Port Darwin southwards to a point on the northern boundary of South Australia proper (which railway with a railway from a point on the Port Augusta Railway to connect therewith is hereinafter referred to as The Transcontinental Railway).
To acquire Port Augusta Railway
(c) At the time of such surrender acquire from the State at the price and on the terms hereinafter mentioned the Port Augusta Railway including the lands now used for and reserved for such railway together with all stations and other buildings sidings wharfs and other accessories used in connexion with the working of the said railway except the railway carriages trucks and other movable plant and rolling - stock.
To pay for Port Augusta Railway
(e) Pay the price of the said Port Augusta Railway by becoming responsible on the date of the sale and transfer thereof to the Commonwealth for the amount of the loans raised by the State for the purpose of constructing the said railway and used therefor and by annually reimbursing the State the interest payable thereon and by paying annually into a Commonwealth Sinking Fund the amounts which the State has undertaken to pay into such a fund in connexion with the said loans until the said loans are paid and redeemed by the Commonwealth as or before they become due.