D.—No. 2

I also informed you that, as you had endeavoured to cast blame upon me, and as I was unwilling that any misapprehension should remain on your mind in regard to the Provincial Government, I should, by the next opportunity, address a separate communication to you on the subject. So many questions are raised in your letter of the 10th, that I have found it necessary, to avoid the confusion induced by a succession of quotations, to return you a copy of that letter, with my own remarks thereon appended. I also send certain enclosures in elucidation of those remarks ; among others, a Financial Statement made in Council by the Provincial Treasurer, in order that you may satisfy yourself that the Auckland Loan Fund is not so much at the disposal of the Provincial Government as you appear to suppose. I have, &c, EOBERT GRAHAM, The Hon. Colonial Secretary. Superintendent. Enclosure 1 to No. 39. Colonial Secretary's LETrEK, dated 10th April, 1865, with Notes thereon by the Superintendent, Auckland. Sir,— Colonial Secretary's Office, Welliugton^lOth April, 1865. I have the honor to acknowledge the receipt of your several letters (three in number) dated respectively the 3rd instant, in reference to the intention of the Government to discontinue the employment of immigrants on public works after the 30th instant, and also in reference to the disposal of land under the New Zealand Settlements Act. I have, in the first place, to convey to your Honor the thanks of the Government for the assistance which you have been hitherto good enough to render it in the management of the Immigration Scheme undertaken by the late Government, and I have to express my regret that your Honor and the members of your Executive should decline to continue that assistance. Should your Honor's decision remain unaltered, the Government will make the best arrangement in its power to provide for the change of management. Meantime the Government feels obliged by your Honor's offer to continue the management temporarily till such new arrangements arc made. Previous to the receipt of your Honor's letter, Dr. Knight had been instructed to proceed to Auckland, with powers to act on behalf of the General Government in these and other matters. I proceed to notice briefly your Honor's reasons for giving up the management of the immigration business, founded on the determination of the Government to discontinue the employment of the immigrants after the 30th instant. In coming to this determination, I can assure your Honor that the Government has not been regardless of the obligations contracted towards the immigrants under the terms offered to them by the late Government. The various points to which your Honor refers, together with others which seem to have escaped your Honor's attention, have been deliberately and anxiously considered. The conclusion at which the Government have arrived is, that, as a general rule, no promise has been held out, or any specific engagement (1) entered into with the immigrants, binding the Government to employ them upon public works for a definite time. On the contrary, Mr. Header "Wood (under whose directions I assume the great bulk of the immigrants have been brought out), appears to me to have specially guarded the Government against any such liability. In the language of his letter to Mr. Clark, of the 2nd June, 1861, and which is the basis of the arrangements with the immigrants, the Government does not want to undertake, as a condition of settlement, to employ the immigrants at specified works (2) for a definite time. He states, indeed, that the Government is about to undertake public works upon which the immigrants may expect to be employed; but he adds, that this is a resource on which they must not rely. 1 cannot consider representations of this kind as binding the General Government, under the existing circumstances of the Colony, to undertake public works for which it has no available funds, merely for the purpose of providing the immigrants with employment. I may regret, in common with yourself, (3) that vague inducements of this kind have been held out, without (as the result has shown) a guarantee that the Government would be enabled to realize them. Hut the Government is, as you are aware, absolutely without funds (4) available for the construc(l) The immediate question is, whether specific engagements had been made with the Provincial Executive. But the following extracts from Ministerial papers seem conclusive in regard to promises or engagements with the immigrants:— Extract from Parliamentary papers, relative to Immigration, 3rd March, 1864: — " This land should be given on condition of residence, and granted in fee simple after that condition has been fulfilled for three years. There will be no lack of employment, as public works on a considerable scale will be undertaken in the districts in which settlers are located, and until work is obtainable in the ordinary course of country industrial occupations the surplus labour of the districts will be employed on such works. Frederick Whitaker.—The Hon. B. Wood." " Colonial Secretary's Oflice, Auckland, Ist April. 1864. —The Government will find employment for them during at least six months. W. Gisbobxe, Under Secretary. —Messrs. J. Martin and J. May." Instructions for William Berg, Esq., Emigration Agent, Cape Town : —"There will be no lack of employment, as public works will be undertaken in the districts in which settlers are located, and until work is available in the ordinary course of country industrial occupations the surplus labour of the districts will be employed on such worts." These, in another part of this despatch, are termed " vague inducements." (2) The obligation is to maintain, for a time, the helpless people whom the General Government has imported. Whether by undertaking public works, or otherwise, is a matter for their own consideration and discretion. (3) lam not aware of having expressed any such regret. I did not consider these as " vague inducements," nor do I admit that auy further guarantee than the pledge of the General Government should be required. (4) The General Government are without funds. But had a sufficient guarantee that the confiscated lands would be handed over to the management of the Provincial Executive been given by the General Government, I could have obtained with ease the funds required. In proof of this, I enclose copy of correspondence with the Bank of New Zealand, approved by Mr. Sewell. It was only in consequence of funds being otherwise obtained by the General Government that the arrange-

See ante,

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CORRESPONDENCE RELATIVE TO MAINTENANCE