D—No. 7

ADJUSTMENT OF NEW ZEALAND COMPANY'S DEBT BETWEEN NELSON, CANTERBURY, AND OTAGO.

No. 1. MESSRS, FREDK. WHITAKER.AND C. W. RICHMOND TO MR. STAFFORD, COLONIAL SECRETART. Auckland, August 20th, 1858, Sir,— We have the honor to enclose an Agreement between the Members of the General Assembly from the three Provinces of the Middle Island, to refer the question of the Apportionment of the Debt of £200,000 between those Piovinces, to our Arbitration; and also an Award on the question referred. As these documents are of public importance to the Colony, we have forwarded them to the Colonial Secretary's Office, in order that they may he placed on record there. We have the honor, &c, Fredk. Whitaker, C. W. Richmond. The Hon. the Colonial Secretary, Auckland.

No. 2. COPY OP AN AGREEMENT FOR THE APPORTIONMENT OF £200,000 DEBT BETWEEN THE PROVINCES OF NELSON, CANTERBURY, AND OTAGO. The Province of Nelson having complained of the Apportionment amongst the three Provinces of the Middle Island, of the sum of £200,000 raised to discharge the New Zealand Company's Debt, effected by the Financial Resolutions of 1856, the undersigned Members of the General Assembly from those Provinces, have agreed to refer to arbitration the question of whether general considerations of equity and fairness call for i-ny, and if so, what alterations in that apportionment. They farther agree that Messrs. Richmond and Whitaker shall be the Arbitrators in the case, with power to appoint an Umpire in the event of their differing. They also pledge themselves to use their best endeavours to carry out the Award to be made by the Arbitrators, to have it incorporated in the Land Revenue Appropriation Bill, and considered in their respective Provinces as a final and binding arrangement. D. Monro, J. Ollivier, W. Cargill, M. Richmond, Crosbie Ward, John P, Taylor, Herbert Evelyn Curtis, John Hall, Jas. R. Menzies, Alfred Domett, Richd. Packer, John Hyde Harris, E. W. Stafford, W. S. Moorhouse, C. R. Blakiston, For the Province of Nelson. For the Province of Canterbury. For the Province of Otago,

No. 3. The Agreement under which the matter in difference has been referred to us as Arbitrators set forth that:— The Province of Nelson having complained of the Apportionment amongst the three Provinces of the Middle Island of the sum of £200,000, raised to discharge the New Zealand Company's Debt, effected by the Financial Resolutions of 1856, the Members of the General Assembly from those Provinces, whose names are subscribed to the Agreement, have agreed to refer to arbitration the question whether general considerations of equity and fairness call for any, and if so, what alteration in that Apportionment. Dr. Monro, on the part of Nelson, Mr. Hall, on the part of Canterbury, and Captain Cargill, on the part of Otago, have attended us to explain the circumstances to be considered in reference to those several Provinces. In reviewing at this time the Apportionment made in .1856 by the General Assembly, we have the advantage of better information in some important particulars than was then available. A more accurate chart of the islands of New Zealand, published since that time, has enabled us to avoid an error as to the size of the several Provinces of the Middle Island. From a careful calculation made in the Land Office at Auckland, it now appears that in 1856 the area of Nelson was much over-estimated, that of Canterbury rather under-estimated, and that of Otago is not so large as it was then believed to be. Additional information has also been obtained as to the relative value of land in the several Provinces; and their resources now appear in a somewhat different relative position. Under all the circumstances, as now presented, we have felt no difficulty in arriving at the conclusion that '' general considerations of equity and fairness" require some relief to Nelson, but we have felt great difficulty in arriving at any conclusion as to the extent to which that relief should be given.