(2)Subject as aforesaid, where any territories have been voluntarily ceded to the Crown by a Federated State before the passing of this Act-(a)in return for specific military guarantees, or(b)in return for the discharge of the State from obligations to provide military assistance,there shall, if His Majesty, in signifying his acceptance of the Instrument of Accession of that State, so directs, be paid to that State, but in the first-mentioned case on condition that the said guarantees are waived, such sums as in the opinion of His Majesty ought to be paid in respect of any such cession as aforesaid.
