Wellington 27th May 1868 My dear McLean On my return from Nelson I read your letter (official) on the subject of a recent payment made by the Treasury to the Supt. of Wellington on account of the alleged share of Hawkes Bay for set. of the Wellington debt. Until I read your letter I did not know owing to absence probably that the Treasury had paid or intended to pay the money in question, and am sorry the payment was made as, after the conversation I had with you recently on the subject I had intended to bring before the Cabinet the question of whether any more payments on that account should be made from Hawkes Bay Revenues until the amount for which that Province was liable had been duly settled. The Treasury is of opinion that it had no option in the recent case, but must continue to stop from your revenues the same sum for each year as was indicated in the resolution of the H. of R. Isolated opinions on the question are of but little value - There is no doubt an Act should be passed next session to determine the question of liability and amount, and the Govt. will give you every assistance in getting such an Act passed, which would settle the sum for which each Proce. was liable from the date of separation, irrespective of what either may have contributed in the meantime, so that if H. B. has paid more than her share she will receive the surplus back. You will be glad to learn that Fitzherbert, after a tedious negociation conducted on his part (as I am informed by competent authorities) with singular tact and firmness has succeeded in getting the Impl.Govt., in spite of the opposition of the War Office, and Treasury to forego its claim on the Colony for advances and military expenses arising out of the late war. As the sum claimed was upwards of £1,400,000 (less the £500,000 remitted by us) it is a question well settled and its settlement will improve our position on the London market. I am not without some feeling of pride for my own share in the matter, as I first disputed the Impl. claims (both as to the justice of the principles on which they were based, and the items) and prepared also the statement of Committee claims on behalf of the Colony, which, the Home Govt. not being able to dispute it, has largely contributed to their agreeing to cry quits - Fitzlgerbert is sanguine of being able to convert the existing debts into another stock with advantage to the Colony. Believe me dear McLean Ever faithfully yrs. E. W. Stafford