The Lyttelton Times.

Lyttelton Times, Volume VIII, Issue 511, 26 September 1857, Page 5

The Lyttelton Times.

Saturday, September 26. A Boundary dispute has arisen between this Province and Otago. Sir George Grey, in his Proclamation fixing the limits of the several Provinces of New Zealand, described Canterbury as bounded on the south "by the river Waitangi to its source, thence by a right line running to the source of the river Awarua, thence by the river Awarua to its mouth." And by a map affixed to the original proclamation it appears that the course of the Waitangi lies nearly east and west so far as it constitutes the southern boundary of this province. There are, however, several branches of the

river Waitangi; and the Otago province I assumes strangely enough that the northern branch, which runs from the north-west towards the south-east is the boundary line between the provinces. The very clear ideas upon which this theory is based are developed, we understand, in a recent letter from the Superintendent of Otago to the Provincial Government of Canterbury on this subject. He argues that, as the river Waitangi is the boundary of the Province of Otago, all its branches are of course included ! Now the Proclamation lays down the river Waitangi as the boundary of Canterbury, and, in describing the limits of Otago, simply states that it is bounded on the noith ** by the southern boundary of the Province of Canterbury as already described." So much for the argument of his Honor of Otago. Whatever it is worth, it is entirely in favour of Canterbury, and we are thankful for the hint. According to his own showing, we are entitled to include all the brandies of the river within our boundary. Our Government, however, take a much safer common sense ground of argument, viz., that the map accompanying the Proclamation indicated the branch running jiearly from west to east, and that it does not justify the very curious assumption that an angular incision had been made northward by Sir George Grey in laying down the boundaries of the two provinces. Otago meanwhile is issuing licenses to depasture the country in dispute, for the occupation of which our Waste Lands Board have also issued licenses. A notice which appears in our columns to-day announces the intention of the Canterbury Government to proceed against all persons trespassing under cover of licenses issued by the Otago Land Board. A very pretty quarrel as it stands. . The General Government, we believe, intend to appoint a commission to settle the boundary. We are glad of it, as in a question which involves pecuniary interest there is little to be hoped from the fairness of a Local Government that declines even to reimburse a paltry expense incurred for it by a neighbouring province.

We were well informed by the last mail when we stated that there were good grounds for hope that Mr. Sewell would obtain the Imperial guarantee for the £500,000 loan. The following is an extract from a private letter from Mr. Adderly M.P., dated July 10.

1 Xl hope the news of this post, that this Government agrees to your entire loan of £500,000, will be gratifying to all. It is through a select committee, and will immediately be introduced in the shape of a bill; which, of course, the Government, late as it is, can force through. Indeed, I doubt if any will oppose."

The 'success of this negotiation with the Home Government is due to Mr. Sewell's persevering exertions, and to the active cooperation of the political friends of New Zealand; notwithstanding the discouragement naturally conveyed by Mr. Labouchere's letter to the Governor of New Zealand, an Extract from which we published a short time ago.