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New Zealander, Volume 6, Issue 489, 21 December 1850, Page 1 (Supplement)

The promoters of the Canterbury Association continued to manifest the greatest activity and energy in the prosecution of their object. Some extracts illustrative of their progress will be found in our other columns. It will be noticed that a difficulty (which it would seem had not been anticipated at first) had arisen in the way of Dr. Jackson's immediate entrance upon his functions as Bishop of Lyttelton,— Dr. Selwyn, having been endowed with such extensive powers on his appointment to the "Bishopric of New Zealand" that another Bishop cannot be fixed in the colony without his concurrence. That concurrence, however, there was little doubt would be readily given ; indeed, most probably, a notification to that effect is now on its way to England. Meanwhile, Dr. Jackson was styled " Bishop-desig-nate." The shrewd and vigilant managers of the Otago Association had alieady been active in endeavouring to avert the injurious results to their settlement that might be apprehended from the dissolution of the New Zealand Company. In the first instance the Committee of the Association applied to the Directors of the Company urging that some temporary arrangement should be made to prevent detriment to parties intending immediately to emigrate. The rather curt reply from " New Zealand House " was that the j notice of surrender of the Charter having been forwarded to the Secretary of State, " the Company will be unable to become responsible J for any expenses incurred by the Association subsequently to your receipt of this letter." Further correspondence ensued which led to no more satisfactory conclusion, the Directors not being willing to acknowledge, at all events practically, the principle laid down by the Association — that the terms of purchase formed a mutual contract between the Company and the land owners from which the former could not withdraw without the consent of the latter, and that " the Company having voluntarily incapacitated itself to give performance does not relieve it from responsibility." Under these circumstances, the Association forwarded a memorial to Karl Grey in which their case is stated at much length. The points specially urged by them, and the favourable reception which on the whole their application met with, will be sufficiently understood from the following reply from the Colonial Office. It will be seen that Lord Grey is willing to 'grant the Association a Charter similar to that of the Canterbury Association ; — and — a matter of yet more general interest to the Colony — that Her Majesty's Government now "takes the lands of the Company subject to existing contracts."

Ma. Haves to the Secretary or the Ota go Association. Downing tlreet, July 16, 1850. Sir, — I am directed by Earl Grey to acknowledge your letter of the 9th of this month, transmitting a memorial from the Otago Association, and certain own* ers of lands within that settlement, stating the grounds on which the memorialists apprehend danger to the settlement from the New .Zealand Company's surrender of its charters, and making application that the Association may be incorporated by a royal charter. 2. His lordship is much gratified by the additional testimony which this memorial bean to the success which has hitherto attended tbe Otago scheme of colonization, and the very considerable progress made by the settlement. 3. He is anxious to make it understood, without delay, that, under the Ace of Parliament, in pursuance of which the New Zealand Company has now given notice ot the surrender of its Charter, her Majesty's Government takes the lands of the Company subject to existing contracts ; that Lord Grey regards the engagements between the Company and the Otago Association and settlers (now embodied, as he under, standi, in ths Terms of Purchase and Pasturage of Ist Auguit 1849) as a Coutract of this description, which her M»jesty's Government is bound to cirry into execution, as far as lies in its power ; and that he considers that the present duration of this Contract extends to November 1852, as stated in your letter. 4. The most immediate difficulty which occurs to his lordship, in considering the manner in which tbe relations of her Majesty's Government and tbe Association are to be conducted, arises from the circumstance that portions of the existing Contract seem to apply in terms to the Company only, and not to be intended to meet the case of its dissolution. These are tbe portions regarding the management of the affairs of the Settlement in New Zealand, and the acts to be done by the Company's Agent. The notice of surrender not having been given by the Directors until the day (sth July) when the effect of that notice was to transfer all its lands directly to her Majesty's Govern* nent, Lord Grey has not been able to take any precaution before band against this difficulty, or to enter into any correspondence with tbe Association 'eipecting it 5. He is anxious, therefore, that Uhe Association should proceed to consid? r tbe altered position in which heir affairs are placed by this surrender, and by the lotice which the Directors have already given to the ?oinpa,Dy's Agents ia New Zealand, that their functions

are about to cease, and should suggest to him the substitution of any other Agents for the conduct of their affairs in the Colony, in whom they might have confidence ; or any other modification of the existing agreement which the new state of things may appear to render necessary. 6. Lord Grey is alio prepared to advise her Majesty to grant the Association a Charter, similar to that of the Canterbury Association, if they should continue to think it necesiary, and will be happy to receive and consider j the draft of such a Charter.— l am, &c. (Signed) B. Hawes. J. M'Glaiban, Esq* Having thus given precedence to such intelligence as has any bearing on the concerns of our own colony, we shall in due time, and in such detail as we may find practicable or desirable, advert to some of the more general contents of the papers that now load our table.