PAPERS RELATING TO THE SETTLEMENT OF CONFISCATED LANDS IN THE PROVINCE OF AUCKLAND.

Appendix to the Journals of the House of Representatives, 1865 Session I, D-02a

D.—No. 2A.

PAPERS RELATING TO THE SETTLEMENT OF CONFISCATED LANDS IN THE PROVINCE OF AUCKLAND.

PRESENTED TO THE HOUSE OE REPRESENTATIVES OCTOBER lOtu, 1865, AND ORDERED TO BE PRINTED. WELLINGTON. 1865.

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No. 1. The Superintendent, Auckland, to the Hon. the Colonial Secketaiiv. Sib,— Wellington, 19th September, 1865. I have the honor to lay before you for your information copy of a letter addressed to me by Mr. Eaton, the AVaikato Immigration Commissioner, in order that you may more fully understand the difficulties which have to be overcome, by the Auckland Provincial Government, in carrying out to a successful issue the scheme of settlement which I have undertaken on your behalf. I trust however to overcome them finally, if assured of such reasonable support as the General Government have it in their power to afford. I also desire to recall your attention to the fact that one part of the arrangement under which in May last I undertook the management of the General Government Immigrants was this, that within two months from that date the Tuakau Block (at that time supjioscd to represent £18,000), was to le handed over to the Superintendent of Auckland in such a manner as would enable him to sell, lease, or raise money upon it. I need not remind you that the grant has not yet been made in such form as would enable me to accomplish any of the objects so contemplated. This delay has greatly affected the value of tho Block, which is now inadequate to meet the requirements of the case. Under any circumstances the Tuakau Block could not now be disposed of, except at a great' sacrifice, I would therefore suggest that, in order to obviate the necessity of forcing it into the market, General Government debentures be placed in the hands of the Superintendent to enable him to carry out the engagements entered into with those immigrants, such debentures to be charged against the Province as for the permanent benefit of the Province under " The Loan Appropriation Act." I have, &c, The Honorable the Colonial Secretary, Robert Graham, AVellington. Superintendent of the Province of Auckland. Enclosure to No. 1. Fred. J. Eaton, Esq., to the Superintendent. Sir, — AVaikato Settlement Office, Auckland, 22nd August, 1865. I have the honor to acknowledge the receipt of your note, dated AVellington, 15th instant, and to inform you that nothing of consequence has transpired since my previous letter. AVith respect to your wish that the immigrants should be armed without delay, I would suggest the advisability of deferring that step for a further period for various reasons. The rate of wages has been reduced, they are generally in debt and dissatisfied, and are ready at a moment's notice to rebel if means whereby they could ensure success were within their reach. That they must live is certain ; that they cannot live on nothing is equally true ; there is no work for them in the Province ; what alternative is there for them but to put their threats, already uttered, into execution, and clear off every available head of cattle they can ? The settlers are already beginning to fear the consequences of arming them. I would have them sworn in, for then we could check their leaving the Province in the wholesale manner they are now doing. The only question now under discussion, is the right of the immigrant to dispose of his land, and whether the Government should approve of any respectable person, or confine themselves to agricultural laborers. Everything in my power has been done to reduce unnecessary expenses ; a destitute ration, costing half the value of the one heretofore in use has beeu supplied. The Drury depot has been abolished. The seeds, &c, are approved and are now being supplied ; the whole of the sum required under this head will not exceed six hundred pounds for about four hundred applicants, and this almost includes tho price ofthe fifty tons of potatoes supplied by Mr. Ralph Simpson, thus leaving ten shillings per head for agricultural implements, should you deem it desirable to accede to their demands on this score. I think it unnecessary, as a large amount of Government tools will be available for sale to them shortly perhaps. Mr. Ralph Simpson, has completed deliveries upon his contract and in accordance with your verbal instructions, 75 per cent, has been paid him on the amount to which I considered he was entitled ; I was very careful to erase any sum upon which the slightest doubt, as to its being subsequently approved by your Honor, existed. I will not fail to communicate any occurrence of auy consequence. I have, &c, Ered. J. Eaton, R. Graham, Esq., M.G.A., Wellington. Immigration Commissioner. No. 2. The Superintendent, Auckland, to the Hon. the Premtee. Sib — Wellington, 20th September, 1865. I have the honor to enclose copy of a letter received from Mr. Jackson, Deputy-Superintendent

CORRESPONDENCE RESPECTING THE SETTLEMENT OF CONFISCATED LANDS IN THE PROVINCE OF AUCKLAND.

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of Auckland, respecting the condition of the AVaikato Immigrants. I shall be glad if you will appoint an early day when I might wait upon you to ascertain what is the best course under the extraordinary circumstances to adopt. I have, &c, The Hon. the Premier, Rorert Graham, Wellington. Superintendent of Auckland. Enclosure to No. 2. The Deputy-Superintendent, Auckland, to the Superintendent. Sir, — Superintendent's Office, Auckland, 11th September, 1865. I have the honor to inform you that out of the £33,000 placed at the disposal of the Provincial Government to carry out the Waikato immigration scheme, there only remains unexpended the sum of £5,800. It is estimated that the sum of £4,900 will be required for the current month, and that on the Ist October next there will be on hand the small balance of £900 with which to meet claims for salaries, surveys, tools, seeds, &c. Under these circumstances I have deemed it my duty, with the advice of Mr. Cheeseman, to notify to the AVaikato Immigrants that assistance will not be afforded them after the 30th instant. In the different districts where these immigrants are located there is little or no employment to be obtained, and in and about Auckland the case is no better ; the result will be that a very large proportion of the immigrants will have to be supported at the cost of the Province, or starve. The immigrants who are located at Mongonui and other Northern ports will, I presume, be entitled to a free passage to Auckland as soon as we cease to pay and ration them. In a few days we shall have to grapple with this great difficulty, and it is not clear, in the absence of instructions from your Honor, what course we should pursue. Had the blocks of land where the immigrants are located been earlier sold, there is no doubt that capitalists would have purchased farms, and found employment for the settlers ; as it is the immigrants will be without employment —are at present almost universally indebted to the storekeepers, and when they are struck off pay will not have the means of purchasing a single meal. I had hoped to have heard from your Honor before this what course to pursue, as for some time past it must have been clearly forseen that the AVaikato immigration scheme could only land us where it has landed us, and that the difficulty would have to be met. As there is time to hear from your Honor before the 30th instant, I do hope that you will furnish me with ample instructions what to do and how to act in this matter. I have, &c, Samuel Jackson, R. Graham, Esq., M.G.A., AVellington. Deputy-Superintendent. No. 3. The Superintendent, Auckland, to the Hon. the Colonial Secretart. Sir,— AVellington, 22nd September, 1865. I have the honor to enclose copy of Reports from Mr. Eaton, the AVaikato Immigration Officer, for your information. I trust that you will appoint an early time to take the whole matter into consideration, and arrive at a decision before the return mail for Auckland on Sunday first. I have, &c, The Hon. the Colonial Secretary, Robert Graham, AVellington. Superintendent of the Province of Auckland. Enclosure 1 to No. 3. Ered. J. Eaton, Esq., to the Superintendent, Auckland. Sir, — AVaikato Settlement Office, Auckland, 4th August, 1565. In conformity with your request, I have the honor to forward for your Honor's information the accompanying statement, showing in detail the number of immigrants who have arrived under the General Government scheme, those who have been allocated, and the extent of land which will be further required for apportioning to the remainder. AVith regard to other matters connected with immigration, I have to report favorable progress. All the requisitions for seeds have been received at the office, but owing to Mr. llarrop's services being in a great measure required in your Honor's office, a little delay in preparing and revising the necessary forms has occurred. I have, by authority, had books printed, containing a receipt for the seeds together with a promissory note for the amount of their value, which the immigrant will sign after they have been duly filled up by me. The expense incurred by the Government on account of advances of this nature to immigrants, will not exceed your anticipations if indeed it reaches it. So soon as the necessary books are received, which are now in the printer's hands, steps will be taken in accordance with your views upon the matter, to have the immigrants sworn in. A memorial has been received from the immigrants sent down to Whangaroa, praying for attention of the Government to their condition and ill-treatment. By authority from Mr. Crawford, and in accordance with a suggestion made by Captain Butler, (and a memorandum only just received from Mr. Brown, left by Mr. Carleton), I have written to Mr. Eairburn, requesting bis assistance in ascertaining the truth of the memorial. If true, it will be advisable to appoint an officer to supervise the immigrants at AVhangaroa, as is done at other places. The immigrants under Mr. Johnstone's care at Mangapai have also memorialised your Honor for redress of grievances. I have in reply, called Mr. Johnstoue's attention to the same and informed him that every means should be adopted, compatible with economy, for securing the health and comfort of those under him.

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As these matters are of a serious nature, I enclose original documents above alluded to for your information. Mr. Bowling has been requested by the Deputy-Superintendent to find sureties for the faithful discharge of his duties. I understand that you mentioned the subject to him prior to your leaving for AVellington; this I was not aware of, or would have attended to it ere this. Some of the estimates of pay appear unreasonably excessive, notwithstanding the last month (July) has been very wet. Consequently I have deemed it necessary to call Mr. Bowling's attention to the advisability of ascertaining why more money is required under the circumstances than was paid for the previous month. Mr. Simpson's contract, so far as regards tho delivery of stores at Tuakau, has, I learn from Mr. Hay, been performed. No notification has been received from other settlements that the remaining portion of the contract has been fulfilled. I purpose proposing for approval a reduced scale of rations to bo issued, in lieu of the present one, to those who have a Just claim upon the Government for assistance, either in consequence of sickness or destitution, caused by inability to obtain employment. I would here remind your Honor that the building on the North Shore is empty, while it might perhaps be let to advantage, and so assist in reducing our daily expenditure. Mr. Kelly's account for the month of July is nearly £400 less than that for June ; other reductions have also been made, which it is unnecessary to detail. There is no other matter in connection with my department which I need bring under your Honors-notice. I have, &c, Fred. J. Eaton, R. Graham, Esq., M.G.A., AVellington. Immigration Officer for General Government. Enclosure 2 to No. 3. Fred J. Eaton, Esq., to the Superintendent. Sib, — AVaikato Settlement Office, Auckland, 16th September, 1565. I have the honor to acknowledge the receipt of your Honor's favor dated the 9th instant, and feel much pleasure in complying with the request therein contained. The mail leaves on Monday next the 18th instant and as your Honor's letter only came to hand this afternoon, I have not so much time as I could wish to prepare a lucid statement of affairs connected with my department. I will divide my letter into three heads:— 1. The state of the funds placed at your Honor's disposal for immigration purposes. 2. The present condition of the immigrants. 3. The probable result of stopping the works. I.— Statement of Funds. Accompanying is a statement, No. 1, which will show in detail the moneys expended upon the General Government Immigrants, ah initio, excepting the cost of surveying lands for allocation, and the salaries paid to Agents in Great Britain and Ireland (these latter will be found in the printed correspondence upon Immigration matters, a copy of which is herewith). From this statement, No. 1, it will be seen that £5,000 is inserted as " Probable requirements for September." The majority of the ploughing and seeds will be paid out of that amount. About £3,000 would I think suffice for paying salaries and wages both north and south of Auckland. At the close of this month therefore we shall only have £1,300 to the credit ofthe fund. In this emergency it was deemed advisable to write a circular (copy enclosed) notifying that all pay would cease on the 30th instant. I will hereafter state the effect of this notice on the immigrants. 2.—The Present Condition of the Immigrants. Upon this question I can speak the more reliably, having just completed a visit to all the settlements. In each and every one of them I observed a desire to better their condition; and those who have been some six months on their land have made very great progress in developing the natural advantages of their settlements —and indeed all have proportionately advanced. The Germans are conspicuously industrious ; and all heads of families seem striving, not simply to remain in possession of their allotments, and exist on Government work, but, by perseverance and self-denial, to improve, with the small means at their disposal, their little properties, and so, at a future day, to render themselves independent of external assistance—further than such as may be afforded by settlers in their immediate neighbourhood. This was the primary object of the scheme ; and if those immigrants who hold this view of their position can be made to feel that Government will appreciate their endeavour to succeed, by a little further support, then I am confident that a very great benefit will accrue to the Province from the success of the original intention of the late Ministry having been carried out in its integrity. In some of the settlements, a proportion only of the immigrants have received their seeds ; others have received none at present. Some have had a portion of land ploughed, others none at all; and a few have not yet been put in possession of their allotments. (Vide clause 7, printed terms and conditions.) Some of the settlements enjoy more geographical advantages than others, and have consequently greater facilities for obtaining employment. Others possess geological superiority, in having received land of admirable quality, ready for the plough ; while a few are located iv a thick bush, the phj^sical difficulties of clearing wliieh (though very valuable to a capitalist) will prevent the present occupiers from reaping any benefit from it during the present year. Notwithstanding the many disadvantages enumerated, all appear anxious to use every endeavour to surmount them. All large families are in debt to the storekeepers, and both debtors and creditors are depending upon the ultimate success of the settlements for the liquidations of these debts.

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3.— The probable result ofthe Works being stopped. There is generally a bright as well as a dark side to every picture; but in the one before me I can only discern the latter. If the majority of the immigrants were possessed of means, or if in the neighbourhood of their settlements any adequate labour could be provided to meet their exigencies, then one might look upon the prospect of their welfare with a probability of success ; but when, in lieu of this, we are aware of their indigence and inability (though willing to work at reasonable wages) to procure the means of existing, all must admit that their future is anything but favorable, either for themselves individually, or for the Province collectively. If the wages are stopped as intended at the close of September, there will be no alternative but to plunder and rob what they cannot honestly buy. Already, in anticipation of' circumstances, have they commenced killing cattle in the vicinity of their settlements, and rewards of £50 are now being offered for bringing the offenders to justice. It is lamentable to suppose that this state of things will be permitted, when a comparatively small sum, judiciously expended, would entirely obviate the difficulty, and ensure the execution of the original idea. Suppose, for instance, that a line of railway were opened from Drury to the AVaikato, and that all the immigration labour were absorbed in this undertaking, or (if that were not feasible) that the adult males be enrolled as portion of the proposed Colonial Force, and be reserved for the defence of the Waikato. AVhatever course is pursued by the Government should be communicated with the least possible delay to the authorities in Auckland, for the sword of Damocles is, as it were, suspended over their heads. They know what the result of present intentions will be, and a feeling of despair pervades them as a body ; they have no heart to improve their land, when they feel it almost impossible for them ever to reap any benefit from their toil and outlay. Again, not only will the Province suffer from their depredations as before alluded to, but the money expended in ploughing will have been thrown away, the seeds will be wasted (the seed potatoes many are now living on), and last but not least, the cost of introducing upwards of three thousand immigrants will have no other effect than to cast an impoverished and starving population upon the hands of the Provincial authorities. In conclusion, I may say that in writing this Memorandum (though hurried on account of the mail), I have strictly adhered to facts, feeling the great importance of the question, and I trust that your Honor may be enabled, with assistance, to avert speedily the impending calamity. I have, &c, Feed. J. Eaton, R. Graham, Esq., M.G.A., Wellington. Immigration Commissioner. No. 1. MEMORANDUM of a Conversation between Ministees and the Representatives of the Province of Auckland. Present : —The Hon. Messrs. Sewell, Richardson, FitzGorald, Atkinson, Richmond; Messrs. Carleton, Russell; His Hon. Mr. R. Graham. 1. The Government offers to hand over to the Auckland Provincial Government the Government House at Auckland, with the whole block of land, upon tho payment by the Province of the sum of £8,000 to the General Government—the property to be handed over free of all engagements. The payment to be made within a reasonable time—to be arranged. 2. It is proposed, on behalf of Auckland, that all claims to compensation by friendly Natives should go through the Compensation Court, and should be settled in land or money by the Province; and that the claims of possibly hostile Natives should be settled in land by the Province. It is agreed on both sides that, if Auckland undertakes the settlement of the AVaikato and Tauranga, Auckland shall be charged with— (1.) The losses in the war. (2.) Compensation to Natives. (3.) Cheques in Auckland already paid under the Loan Appropriation Act. (4.) Cheques to be paid in fulfilment of engagements to settlers to put them on land. Auckland requires 3 and 4 to be settled by arbitration. Auckland declines to pay any money in cash for the land. E.F.G. R.G. No. 5. The Hon. the Colonial Secretary to the Representatives of the Province of Auckland. Gentlemen, — Colonial Secretary's Office, Wellington, 20th September, 1865. In reference to an interview which took place on Monday last between yourselves and several members of the Government, respecting the affairs of the Province of Auckland, I have the honor to request that you will furnish the Government with your several inquiries and proposals in writing; and particularly that you will state, in as precise terms as the case allows, on what conditions you think it would be reasonable to ask the Provincial Government of Auckland to undertake the administration of the confiscated lands within that Province. The Government will lose no time in bringing the several questions raised to a practical bearing upon receipt of such a communication as I now ask. I have, &c, His Honor R. Graham, Esq., M.G.A., J. C. Richmond. T. Russell, Esq., M.G.A., Lieut.-Colonel Haultain, M.G.A., John Williamson, Esq., M.G.A.

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No. 0. The Superintendent, Auckland, to the Hon. the Colonial Secretary. Sib,— AVellington, 22nd September, 1865. I have the honor to acknowledge receipt of your letter dated 20th instant, addressed to myself and the other members of tho Deputation appointed by the members for Auckland, in which you request a statement, in as precise terms as the case allows, of the conditions on which it would be reasonable to ask the Provincial Government of Auckland to undertake the administration of the confiscated lands within that Province. The Deputation having considered the main question,—viz.: that of the disposal and management of the confiscated lands —concur with me in the following propositions: — Firstly.—That the confiscated lands should be handed over to the Province of Auckland as soon as the necessary arrangements can conveniently be made. Secondly. —That these lands should be made subject to the following liabilities, — (1.) Compensation to Natives in fulfilment of awards in Mr. Fenton's 'Court. (2.) Compensation to settlers for losses incurred through the war, —amount to be ascertained and made payable by the Provincial Government. (3.) Charge on Province of sums expended for the permanent advantage of the Province of Auckland under "The Loan Appropriation Act, 1863," the amount of such sum to be ascertained by a Commissioner appointed for the purpose. Thirdly.—That the 2nd, 3rd, and 4th AVaikato Regiments should be permanently located in AVaikato; the Ist AVaikato Regiment, at Tauranga, or elsewhere on the East Coast. Fourthly. —That the Provincial Government should be empowered to raise money on the confiscated land in anticipation of the sale of those lands, for the purpose of meeting engagements to Natives, and to settlers, and of carrying out public works to be undertaken within the confiscated district or for the advantage of such district. Fifthly. —That the Province shall engage to expend the whole proceeds derived from confiscated lands in AVaikato, in colonizing and otherwise for the general advantage of that district; thereby restoring confidence and ensuring as far as possible the success of the military colonization and AVaikato immigration schemes, undertaken by the General Government. Sixthly. —That the Provincial Government shall takeTe Papa, subject to the following liabilities, — (1.) Compensation to the Church Missionary Society and their tenants, the amount to be settled by arbitration. (2.) Giving town allotments to Military Settlers, the whole quantity not to exceed three hundred and fifty acres. Seventhly. —That should it be found necessary to purchase any land at Tauranga or on the East Coast for the more convenient and useful location of the Military Settlers, the expenses of purchase and location shall be borne by the General Government. Eighthly. —That every facility shall be given to the Provincial Government towards negociations with the Natives for the purchase of lands in the Tauranga District, in continuation of Mr. Clarke's arrangements with tho Ngaterangi Tribe. Permit me to add that, unless some such arrangement as that proposed be agreed to, there will remain but little hope of carrying out the AVaikato scheme of settlement as originally contemplated, and that great hardships, and even destitution —a period of which is close at hand—must inevitably follow, to the serious endamagement of the good faith of the Colony, which is pledged to those who have been induced by promises, direct or implied, to engage with the General Government, I may be allowed to observe, that the matter has now arrived at that critical point which renders it necessary that immediate action should bo taken in the event of your agreeing to these propositions. I suggest that, in order to avoid confusion in the carrying out of these and other works connected with the Province of Auckland, the Government agency should be given to the Superintendent of the Province. I have, &c, Robert Graham, The Hon. the Colonial Secretary, Superintendent of the Province of Auckland, AVellington. (for self and the other members of the Deputation.) No. 7. MEMORANDUM relative to Confiscated Lands. It appears that the total acreage confiscated in the AVaikato is Acres. Acres, about ... ... . ... ... 1,170,000 At Tauranga ... ... ... ... ... 50,000 1,220,000 Of this there will be wanted for Military Settlers ... ... 200,000 For other settlers ... ... ... ... 50,000 For Natives ... ... ... ... ... 250,000 500,000 Balance to be handed over to Auckland... ... ... 720,000 Say ... ... ... ... ... ... -J" 0. 0!00^ The money charges already payable by the Province of Auckland £ s. d. £ s. d. under the Settlements Act, is ... ... ... 189,000 0 0 Additional charges for locating settlers ... ... ... 31,000 0 0 220,000 0 0

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It is proposed that the Province shall also pay : — 1. Losses in the AVar ... ... ... ... 85,000 0 0 2. Money compensation to Natives ... ... 15,000 0 0 100,000 0 0 320,000 0 0 Supposing Auckland pays half-a-crown an acre ... ... 87,500 0 0 407,500 0 0 Say... ... ... ... ... ... 400,000 0 0 It is understood that Auckland requires £100,000 to carry on the work of settling Waikato and Tauranga. Supposing that a loan of half a million were sanctioned, and the interest charged on the Province of Auckland, the General Government will not interfere with the working of the scheme, but will require a entire surveillance and audit, with the power of putting an end to the scheme and taking it again into their own hands if the Province should fail in its work. The Government will consent to replace the General Government Agent at Auckland if the General Assembly will pass a Bill for replacing the elected Superintendent by a Lieutenant-Governor. The General Government cannot suspend the work in the meantime of putting the Natives on their land which is in progress. The Government is about to introduce a Bill for constituting separate Provinces in the centre of the Island, comprising the Ngatiamaniapoto, Taupo, Arewa, Opotiki, and East Coast tribes. No. 8. The Hon. Colonial Secretary to the Superintendent, Auckland. Sir, — Colonial Secretary's Office, AVellington, 2nd October, 1865. I have to acknowledge your letter ofthe 22nd instant, conveying proposals from yourself and several members of the House of Representatives from the Province of Auckland, for the administration of confiscated lands in AVaikato and Tauranga. In reply I have first to express the regret of the Government that they should not have been afforded the opportunity which they sought by previous informal discussion with the gentlemen referred to, of arriving at terms likely to be satisfsctory to all parties interested. The Government propose that after satisfying all those claims on the land under the New Zealand Settlements Act, which can be paid in land under the Bill now before the Assembly for amending the Settlements Act, and after making Reserves at their discretion for the location of Natives who may wish to return to the district, the whole of the confiscated lands in the above districts be made over to the Provincial authorities of Auckland for administration on the following conditions: — 1. The Province of Auckland to satisfy all engagements for land made by the General Government with Military and other settlers. 2. The Province of Auckland to bear all charges for the permanent advantage of the Province. 3. Claims for losses by war. 4. Claims for compensation awarded in money by the Compensation Court under the New Zealand Settlements Act. 5..,Ha1f-a-crown an acre to be paid for all land sold or otherwise disposed of, except in fulfil--4 ment of engagements by the General Government. The General Government will not interfere in the working out of the plans of the Auckland Government for the settlement of the country, but will retain a power of inspection and audit, and a power of cancelling this engagement should the Province of Auckland fail to fulfil its part. I havej &c, His Honor the Superintendent, Auckland. J. C. Richmond. No. 9. The Hon. the Colonial Secretary to the Superintendent, Auckland. Sib, — Colonial Secretary's Office, AVellington, 3rd October, 1865. The subject of the management and settlement of the confiscated lands in Auckland has, since the recent interviews with yourself and other representatives from that Province, been under the most anxious consideration ofthe Government, with a view to proposing terms on which those lands may be handed over to Provincial administration. The first liability to which the lands in question are subject is compensation for the ascertained claims of local Natives. This is a liability of which the Government cannot divest themselves, but as its amount and nature will be exactly denned by the Compensation Court under the New Zealand Settlements Act, they are willing to leave its discharge to tho Province, subject to a general supervision and power of re-entry on the lauds in case of default. The duty of settling those Natives who may wish to return to the districts, and to accept the Queen's authority, and take grants from the Crown, is one which the Government cannot delegate ■without breaking the engagements entered into with the Imperial Government when the New Zealand Settlements Act was left to its operation. The Government must, therefore, retain this duty in their own hands, but they are prepared to deal with the subject promptly aud definitely before handing the rest of the lands over to tho Province. This liability disposed of, they propose to transfer the remaining lands, subject to the following charges and conditions: —

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1. Compensation to Natives, whether in money or in land, as awarded by the Compensation Court under the Settlements Act. 2. The sums expended under the New Zealand Settlements Act for tho permanent benefit of the Province, including any charges which may still come in course of payment under that head. 3. The completion of all engagements with Military and other settlers, except pay and rations to the former. 4. Compensation to settlers for losses incurred in the war. 5. The sum of half-a-crown per acre, for all lands so handed over to the Province, to be paid from time to time as the lands are sold or otherwise disposed of by the Province. 6. Regulations for the disposal of the lands to be made by Order in Council, as provided by the New Zealand Settlements Act, upon the recommendation of the Superintendent and Provincial Council, but subject to revocation or alteration on default of the Provincial Government on any stipulation on their part. The Government must retain the right of excluding from this arrangement any lands such as a part of those at Tauranga, to which the title is still doubtful, and which cannot be settled without creating fresh difficulty ; but such lands are to be handed over as soon as the difficulty attaching to them can be removed. The ordinary power of making reserves, as contained in " The AVaste Lands Act, 1858," must also be retained. The Government are prepared to submit these proposals to the General Assembly, and will accept any alteration in the details which the Houses may adopt. I have, &c, His Honor R. Graham, Esq., M.G.A. J. C. Richmond. No. 10. The Hon. the Colonial Secretary to the Superintendent, Auckland. Sir, — Colonial Secretary's Office, AVellington, sth October, 1565. Referring to your interview with Ministers this morning, I have the honor to inform you that, in order to provide immediate means for the employment ofthe General Government immigrants and settlers on the AVaikato, the Government will propose to the House of Representatives to sanction an advance of £10,000, in anticipation of an arrangement with the Provincial Government of Auckland respecting the confiscated lands. The terms of such advance to be as follows :— The money to be expended by the Provincial Government, but a right of control reserved to the General Government. The advance to be made in eight per cent, debentures at par, and to be reimbursed out of the sale of confiscated lands. Failing an arrangement respecting the confiscated lands, the advance to be a charge against the Revenues of the Province. I have, &c, His Honor the Superintendent of Auckland, J. C. Pichmond. AVellington. No. 11. The Superintendent, Auckland, to the Hon. the Colonial Secbetary. Sin, — AVellington, sth October, 1865. I have the honor to acknowledge the receipt of your letter, dated the sth instant, on the subject ofthe management and settlement ofthe confiscated lands in Auckland. In reference to the proposals contained therein, I have to observe that the Representatives of the Province of Auckland who have lately held interviews with you on the subject, are of opinion that the Province ought not to be called upon to go beyond the proposals contained in my letter of the 22nd ultimo. They consider the offers therein made to be liberal and fair to the General Government. As you intimate your intention to submit your proposals to the House, the whole question had better stand over for consideration ofthe House. I have, &c, Hi tiu Carleton, The Hon.-the Colonial Secretary (for the Superintendent.)

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