B.—No. 5.

One (1) penny per acre for the first Seven (7) years, and Two (2) pence per acre for the remaining Seven (7) years of the Lease. That a pre-emptive right to purchase such Lands at the rate of Thirty (30) shillings per acre for that portion of the Ahuriri Block contained between the Mangaone River, the Esk River, and the Pohui Reserve : Twenty (20) shillings per acre for the remainder of the Ahuriri Block and the Block known as the Arapawanui : and Ten (10) shillings per acre for the Block known as the Mohaka, be given to the Lessees over such portions of the Lands so leased as they shall improve. The term Improvement shall be held to mean, sowing with grasses and fencing. Provided, however, that in such cases where from the nature of the country fencing is impracticable, and a certificate to that effect shall be given by the Commissioner of Crown Lands, the Lessee shall be entitled to the pre-emption right on laying such Land down in grasses without fencing. That it being deemed advisable that certain portions of the Waste Lands of this Province should be reserved for Special Settlement, to be disposed of on a system of credit, — This Council resolves, That His Excellency's Government be requested to legalise the following Regulations for the occupation of Lands reserved for Settlement as aforesaid. The Council is aware that under the provision of the " "Waste Lands Act, 1858," "No Land, after the first day of August, " 1860, shall be sold upon credit, except such as it may be lawful to set apart for Special Settlement " by Immigrants expected to arrive," but it is of opinion that the interests of the Province would be better secured by extending the privileges of the disposal of Land on credit to others than those named in the " Waste Lands Act " —namely, " Immigrants expected to arrive ; " and trust that His Excellency's Government will take the necessary steps to exempt this Province from the operation of that provision, in so far only as Lands reserved for Settlement for Agricultural purposes is concerned. The Council adopts the following as Regulations for the disposal as aforesaid of Lauds on credit :— 1. Before any credit Land shall be sold, the Superintendent shall declare by notification in the Provincial Government Gazette, and in such newspapers in the Colony of New Zealand and elsewhere as he may think fit, that the same will be open for sale at a price to, be there stated, at a place, and on and after a day to be fixed in the notification ; which day shall be at least two calendar months after the first publication of such notification. 2. The price of all Credit Land shall be fixed by the Superintendent, acting by and with the advice of His Executive Council, and shall be disposed of only to persons willing to purchase the same, subject to the conditions hereinafter contained for the occupation and improvement thereof. 3. Any person upwards of sixteen years of age desirous of making a selection of Credit Land shall, on application to the Commissioner, or his Deputy, in Napier, or to such other person in the Colony of New Zealand as shall be appointed by the Superintendent to receive the same, be entitled, upon payment of a sum after the rate of Ten (10) per cent, by way of deposit upon the price fixed for the Allotment of Land selected, to receive a Land Order, in a form to be from time to time prescribed by the Superintendent : Provided always that no person shall be entitled to any such Land Order for more than Eighty, or less than Forty, acres of Land. 4. Evei'y such Land Order shall authorize the person entitled to the same, or his Agent, constituted in writing, to make a selection out of any Credit Land which shall be open for selection at the time such person shall desire to make the same : Provided always that the Land so selected shall be either in one allotment, or in contiguous allotments. 5. Every right of selection must be exercised within two calendar months from the date of the Land Order, if such Land Order has been issued in the Province of Hawke's Bay ; but, if such Land Order has been issued elsewhere, within six months from the date thereof, and the selection under any such Land Order shall be deemed to be complete, whenever the person making the same shall have delivered such Land Order daring office hours at the Waste Lands Office, together with a description in writing (under a sealed cover, with the words " Description of Credit Land" legibly written thereon) sufficient for the purpose of identifying the Land selected. 6. All such sealed covers shall be opened at noon on the next Monday (not being a holiday), by the Commissioner, or his Deputy, in the presence of the Receiver of Land Revenue, or, in the absence of the Receiver of Land Revenue, by such other Officer of the Provincial Government as the Superintendent may from time to time appoint for that purpose, and in the presence of any applicants, if they shall attend; and, if there be more than one application for the same Allotment, the Commissioner, or his Deputy, and such Receiver or other Officer, shall at once put up the same for sale by Auction at the upset price of such Allotment, at which sale those only who applied for the Allotment shall be allowed to bid, and the highest bidder amongst them shall be declared the purchaser thereof; and the amount bid shall be deemed to be the price of the said Allotment : Provided always that, when the person so receiving a Land Order does not make a selection within two months or six months respectively after the date thereof, it shall be lawful for such person to return to the Waste Lands Office such Land Order, and to receive back the amount paid for the same : Provided also that, if any such Land Order be not returned within seven days from the time within which the selection in respect of the same should have been made, such Land Order shall be held to have lapsed, and the amount paid for the same forfeited. 7. Any person whose application shall be granted shall be entitled to have immediate occupation of the land selected, and shall be entitled to a Lease of the same for five years in a form to be from time to time prescribed by the Superintendent, at a yearly rent after the rate of ten (10) per cent, per annum on the price paid for such Land, payable yearly ; and the payment hereinbefore required by way of deposit, shall bo deemed to be payment in advance for such rent. 8. After five years bond fide occupation, and the payment of the rent reserved by the Lease, the

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