EXTRACTS FROM THE BLUE BOOK. Copy of a Despatch from Governor Sir G. Grey to Earl Grey. Government House, Wellington, May 22, 1851.

New Zealand Spectator and Cook's Strait Guardian, Volume IX, Issue 786, 12 February 1853, Page 4

EXTRACTS FROM THE BLUE BOOK. Copy of a Despatch from Governor Sir G. Grey to Earl Grey. Government House, Wellington, May 22, 1851.

My Lord, — I have the honour t% state, for your Lordship's information, that by the twentieth clause of the Act of Parliament 10 & 1 1 Yict. cap. 112., under the authority of which a loin of £136,000 was issued to the New Zealand Company, it was provided that a debt of £268,370 155., payable to the Company, with interest, was to be entailed upon the land fund of this colony, being, .as the Act of Parliament states, after the rate of fire shillings for each acre of the 1,073,483 acres to the possesiiou of which the New Zealand Company were entitled, including 24,491^ acres purchased by the said Company within their own settlements, and held as their private estate. •2. This Act of Parliament was passed on the 23d of July 1847, and expired in July 1850 ; and I have the honour to report, that although Mr. Fox, who was acting as principal agent of the New New Zealand Company, has refused to afford the Government any information regarding his transactions and dealings with the estate of the Company or the demesne lands of the Crown during the three years ia which the Act of Parliament I am alluding to was in operation, yet from what has transpired here there can now be no doubt that during those three years be, voder the name of compensation, handed over to various persons large portions of the most valuable parts of the estate of the Company, and a considerable quantity of laad the demesne of the Crown. There can also, I think, be but little doubt, that in some cases similar to that alluded to in a letter from Mr. Tollemache, in my despatch, No. 45, of 11th March last, Mr. Fox's proceedings were not sanctioned by any law or existing regulations. 3. I have therefore to request that I may be instructed whether the local Government is to admit that the sum of £268,370 15s. is the debt now due from the Government to the New Zealand Company, or whether, when the requisite records have been obtained from the Company, the Government here shall cause a valuation to be made of the property disposed of by Mr. Fox during the continuance of the above-named Act of Parliament, and report the result of this valuation to your Lordship before taking any farther steps in the matter. I have, &c, (Signed) G. GREY. The Right Hon. Earl Grey, &c, &c, &c.