A.—No. 2.

No. 2. Copy of a Letter from his honor f. whitaker to the hon. c. w. Stafford. Sin, — Superintendent's Office, Auckland, December Ist, 1865. I have the honor to invite your attention to the difficult position in which I find myself in reg-ard to the maintenance and location of the Immigrants introduced into this Province under the " New Zealand Settlements Act." Permit me briefly to review the circumstances which have led to it. In December, 1864, the Superintendent and his Executive agreed to act as agents for the General Government in lnanag-emeut of the Waikato Immigration Scheme, the General Government engaging to supply the necessary funds. The duty was undertaken solely with a view to minimizing the cost, the General Government deeming it advisable to maintain an overriding control, which they could not have exercised had the location of the Immigrants been made a Provincial matter. In March, 1865, the General Government, considering the financial position of the Colony, and the expense being incurred, directed the Sub-Treasurer at Auckland to discontinue payment on account of the employment of the Immigrants after the expiration of the month of April next ensuing; whereupon the Provincial Executive, being deprived of the means to act, resigned the agency, Dr. Knight assuming the responsibility of conducting the business. After further correspondence, the Superintendent consented to resume the agency, engaging to find the Immigrants in employment, &c, for not less than two mouths after the land should have been allocated for their settlement (a period calculated to extend until the last day of September ensuing), in consideration of the sum of £15,000, to be handed over in eight per cci t debentures, and a Crown Grant of the Tuakau block, supposed to represent in value £18,000 ; this arrangement being subject to the condition that the survey of the land for the settlement of the Immigrants should be proceeded with at once, and that the Tuakau block should be transferred to the Provincial Government within two months from date. Delay, however, took place in the issue of the Grant, and, when received, it was found to be invalid, the Superintendent being consequently disabled from selling, leasing, or borrowing money upon it. The General Government are now proposing other arrangements for the Tuakau block, in common with the rest of the Waikato land. The Superintendent (lny'predecessor) had reckoned upon a sum of £:ia,ooo, to cover the expenses of a period extending to the last day of September. He found himself obliged to provide for them as best he could, with the assistance of only £15,000 from the General Government; and, moreover, at the expiration of the calculated period, found himself obliged to continue Government assistance, a large number of the Immigrants being absolutely unable to maintain themselves. Every exertion consistent with good faith has been made to reduce the expense, and it has been reduced from over £5,000 a month to £1,500; but the drain upon the Provincial funds has been so severe that, unless further assistance be afforded by the General Government, the Province will be brought into serious financial embarrassment, and the Immigration scheme itself must fail. I have, therefore, the honor to request, as special agent in this matter for the General Government, that you will place at my disposal a sum of Eighteen Thousand Pounds, in substitution for the money which wus intended to be provided by means of the°Tuakau block. I have, «fee, Frederick Whitaker, The Honorable the Colonial Secretary, Wellington. Superintendent. No. 3. Copy of a Letter from his honor f. whitaker to the hon. c. w. Stafford. Sir, — Superintendent's Office, Auckland, December 4th, 1865. In reference to the Resolutions passed by the House of Representatives on the 26th of October, relative to the transfer of the confiscated lands in the Province of Auckland, on certain conditions to Provincial administration, for the purposes of colonization, I have now the honor to inform you that 1 have examined the records of the General Government Agency at Auckland, and availed myself of all the sources of information open to me on this subject, with a View to form an opinion as to the desirability of taking the step contemplated by the Resolutions. Of course it is not in my power to undertake the administration of the lands referred to without the co-operation of the Provincial Council; but I am prepared tj bring the matter before the Council in the next Session. Before, however, I can expect them to come to a decision, it is necessary that I should be able to afford them some information as to the source from which the necessary funds can be obtained to fulfil the arrangements, and meet the liabilities it is proposed that the Provincial Government shall undertake. It is also necessary thai, I should clearly see my way on this point before I undertake to accept the* proposed transfer, as I feel bound to say tluit it is plain to me beyond a doubt that, without the assistance of the General Government, it would be quite impossible for the Provincial Government to carry the matter through, and I am anxious, therefore, to be informed whether the General Government will afford such assistance, by way of loan or guarantee (the former if possible), as may be requisite for the purpose. I have called the Provincial Council together to meet on the 12th instant, in order to dispose of the question of Responsible Government in the Provincial administration, as this question has now assumed such a shape that, until settled, the Executive Government is not in a position to prepare the necessary measures for the consideration of the Council. Having disposed of this matter, I propose that the Council

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