with Mackay made (in effect) the following remark "Why do the Government persist in wishing to carry the line through Ohinemuri. Why don't they select some other line to the Thames" - Mackay pricked up his ears at this - proposed the matter to McKenzie and the present offer is the result. A guarantee has also been given that the work shall be completed - But before anything is done with the Natives it is necessary that we should come to some understanding amongst ourselves. I mean in reference to Dixon's Contract. You mention in your telegram to me that faith must be kept with Dixon. Now the truth is faith has already been broken with Dixon - the part of the line between this and Katikati was a portion of Dixons Contract. Dixons line then went through