to Puckey at once to enter into negotiations but I believe that the money paid by Europeans and for which they are now being sued exceeds the £2,500 you name. Dr. Pollen was of opinion that that sum would more than suffice but I have been enquiring into the case and I do not know the exact amount but it certainly is more than the sum you name. Taipari is in a fearful mess. Mackay has smashed and let Taipari in for about £7,000. I have had a long talk with him and I have made him an offer on the part of the Government for this share of the mud flat that is from the Kareka creek to the Kauaeranga stream. It has been surveyed. Taipari's is the least valuable. I have not told Puckey the amount you have mentioned as a limit because he might let it out and spoil negotiations. I will write as soon as there is something definite to communicate. The survey