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Although it is not part of New South Wales the Australian Capital Territory is surrounded by the state. It is here that the thriving and rapidly expanding national capital, Canberra, is home to the country's public servants and politicians. Of course it has grown so rapidly over the past thirty years that it is now a lot more than politicians and public servants.

Canberra is an artificial city. It did not grow up because of a natural need or natural advantages. It grew up as a compromise. It is a city created as a result of interstate rivalries between New South Wales and Victoria. Where common sense would have demanded that either Sydney or Melbourne become the national capital (thus integrating Federal politics and national administration into the real world of an existing city) political sense said it should be roughly equidistant from the two cities.

In 1908, after much debate, it was decided that 2 330 square kilometres of sheep grazing land in New South Wales would become the site for the capital city. Three years later the Australian Capital Territory was handed over to the Commonwealth Government and that same year a competition was launched for the design of a city for 25 000 people. The competition was won by the American Walter Burley Griffin whose design, based on a series of geometrically precise circles and axes, was similar to the street patterns of Washington, DC and Paris.

Today Canberra is a city of great aesthetic beauty with broad roadways, superb parklands, and many elegant buildings. On a clear spring or autumn day it is a city which is captivating in its graciousness. Events like Floriade, held each spring, highlight the natural beauties of the city.

The views across Lake Burley Griffin are breathtaking. From the War Memorial it is possible to look straight across to the elegant new Parliament House on Capital Hill. From the shores of the lake the reflections of buildings such as the High Court and the National Library are exceptional.

Yet, for all this natural and artificial beauty more derogatory comments have been made about Canberra than any national capital deserves.

Percy Deane, secretary to the Prime Minister's Department under Billy Hughes, declared that the best view of Canberra was "from the back of a departing train".

Espeth Huxley, sister of Aldous Huxley, described it as the most middle class city in the world and one of the early parliamentarians suggested that it was nothing more than a sheep paddock.

Don Dunstan, a former Premier of South Australia, astutely captured a widespread Australian conception of the national capital when he observed "Canberra has such great potential beauty. But something is lacking. The city is like a woman expensively coiffured, dressed, and made-up, well educated, courteous - and frigid. Canberra boasts more than a million trees and shrubs, but many are exotics and most are neatly regimented. Pretty, but it could be a city of anywhere. When you sit up in the Lakeside Hotel and look out at the nightscape, the only thing seemingly missing is Flash Gordon whizzing around the curve below. But what is really missing is any feeling of Australia."

In his inimitable way Mungo MacCallum, a long time member of the Canberra Press Gallery summed up this national feeling of ever-so-slight displeasure when he noted that "Everybody knocks Canberra from the amazing Joh Bjelke-Petersen (a conservative premier of Queensland) who thinks it's a sort of little Moscow on the southern tablelands to the Sydney radio commentator who said that the only good view of the place was out the back window of a car speeding north".

The first Europeans into the area were Joseph Wild, James Vaughan and Charles Throsby Smith who discovered the Limestone Plains upon which modern day Canberra is sited. The following year Dr Charles Throsby reached Tuggeranong and two years later (1823) Joshua Moore's Canberry station was established. By 1825 Robert Campbell had settled at Duntroon (the homestead still stands) and a decade later the first Lanyon homestead was built in the Tuggeranong Valley.

Some sort of small community had been established by 1845 when St Johns Church (which still stands) was completed. Three years later the small community had its own school and by the 1860s most of the area was settled by farmers.

With the declaration of the Australian Federation in 1901 it was decided that there had to be a national capital. Numerous stupid names were suggested - Gladstone, Cromwell, Eucalypta, Thirstyville and, famously, Sydmelbane (to appease state rivalries) - and a parliamentary committee headed off around the country to find a suitable location. They inspected Orange, Bathurst, Lyndhurst, Tumut, Armidale, Bombala, Nowra, Eden, Dalgety, Goulburn and Yass amongst others and eventually decided on Canberra.

A quixotic Canadian, King O'Malley, who had become a Member of Parliament on a platform which included putting toilets in trains and getting rid of barmaids, reckoned that Canberra was ideal because hot climates led 'in three generations their lineal descendants will be degenerate. I found them in San Domingo on a Sabbath morning going to a cock fight with a rooster under each arm and a sombrero on their heads.'

In 1909 Canberra was chosen and by 1911 the territory had been created. In that same year (1911) the first intake of cadets occurred at the military academy at Duntroon. In 1927 the first Parliament House was opened and over a very extended period (it was still going on in the 1960s) the head offices of Federal government departments were slowly moved to Canberra.