Memo I herewith enclose the tracing of a block of land to the North. of Napier comprising about 400,000 acres. I should say that about one half of the block is owned by Hau Hau natives who were taken in arms at Omarunui and the remainder excepting portions purchased by the Provincial Govt. is claimed by friendly Natives, the whole district is leased to Europeans as runs at an annual rental of £1300. The district is the most hilly rugged and unproductive in Hawkes Bay I am informed by the Chief Provincial Surveyor that it does not contain more than 10,000 acres suitable for agriculture. The small rental it yields as compared with other parts of the Province is not a bad indication of the value of the district. To force this land into the market it would not realise much more than the expense of survey after the claims of friendly Natives were satisfied and the only means by which it can be made available to yield a revenue would be to lease it for a long term of years to runholders a small portion might be available for location of 50 or 60 military settlers. The question arises as to how this land should be dealt with it is clear that the Natives who have been in rebellion should forfeit their claims and while recognizing the objections to confiscation generally as a means of settlement there are exceptional cases of which I can conceive this to be one where a severer punishment than mere deportation to the Chatham Islands should be inflicted and I should be glad if the Govt. would come to some decision as to how the claims of those Natives taken in arms at Omarunui and deported to the Chathams are to be dealt with in this particular instance. As a means of checking rebellion I would urge that some step should be taken in this matter and some arrangement concluded with the Province for the administration of the land if it is brought under the operation of the New Zealand Settlements act. Donald McLean. 7 Jany. 1867.