A.—No. 17.

s

EEPORT BY ME. MACKAY RELATIVE TO

Enclosure I.

Enclosure J.

to the north side of Whakaperu ; theuce to the south of Pukataiko ; thence to a stone called Parahako, near the sea, on the East Coast; thence to Pokohunui at low water-mark. On mentioning these boundaries to Ngatimaru and Ngatiwhanaunga on the 16th, they were very angry, and threatened to take forcible possession of the land as far as the Hikutaia River and across to Whangamata. Finding that the dispute was confined to the lands between the Oretai Stream and Hikutaia, I then arranged that the southern boundary of the gold field should be fixed at the Omahu Stream, which was undisputed country. The sketch in the margin shows the relative position of the places. After this I was engaged until the 9th March in fixing the position of residence and cultivation reserves at Puriri, Warahoe, Parawai, and Kakaramata, for the Ngatimaru and Ngatiwhanaunga Tribes, and at Waionui, Te Mata, Kerita, and Matariki, for the Ngatitamatera. On that day the Ngatimaru and Ngatiwhanaunga executed a final agreement about their lands, extending from Omahu on the south to Te Mamaku on the north, and inland to the dividing range between the East Coast and Hauraki Gulf. The lands leased under the agreement of the 27th of July, 1867, were included in this, as well as all those negotiated for with those tribes between the two dates. In consequence of the jealousies existing between the various hapus of the two tribes, it was found necessary to divide the lands leased under this agreement into nine blocks, viz., Te Wharau, Whakatete, Tararu, Te Karaka, Otunui, Whakairi, Te Kirikiri, A\ rarahoe, and Te Puriri. A clause was inserted providing for the transfer of miners' rights from the one to the other of these. Complaints had been made about Europeans cutting timber for other than mining purposes, and it was therefore deemed expedient to agree to issue timber licenses at £5 per annum ; the money arising therefrom to be payable to the Native owners of the land for which the license was issued. The other terms were the same as in the previous agreements. , It may be as well to note here that in all the negotiations and leases to the Crown it was distinctly stated that the Governor had a right to mine as long as he pleased; but whenever any of the land was to be relinquished, the lessors were to receive six months' notice of the intention, so as to enable them to ascertain that all moneys owing to them were duly paid. The land on which Shorthand town stands was (as by the agreement of the 27th July, 18G7,) subject to gold mining; the Natives being allowed the right of leasing the surface for business and residence sites, under the direction of the Government. Graham's Town had, until within a short time of the signing of this agreement, been a "cultivation reserve," but as some of the Native owners had requested me to cause it to be surveyed, with a view to leasing it for building allotments, and as preliminary steps had been taken to do this, I considered it to be a township reserve at the time of signing the agreement, and I afterwards sanctioned the leasing it to Mr. Robert Graham as such, reserving to the Government the right of laying out the main lines of street and of approving the plans of the township. The boundary of the lands ceded for gold mining was also taken along the beach at high watermark, instead of being under the base of the hills as by the first agreement. At the time of signing the document it was not distinctly stated whether the Crown was to have the right of mining under Graham's Town or not, but it was clearly understood that the land was to be leased for town purposes by the Government, the same as Shortland. I therefore believe lam right in. assuming it was then a township reserve, although, since the land has become valuable for mining purposes, it has been disputed by the Natives, and they say it is still a " cultivation reserve." The agreement was carefully read over twice, and explained to them before signing, and they perfectly understood its meaning. The Shortland Township Reserve was by this time cut up into allotments, and many of these were let at the rate of 6s. per foot frontage for ordinary sites, and double that price for corner lots ; with the understanding that this price was to continue for seven years, with an increase for the next term of seven years, and a further advance for a third term of the same duration. About this time I was engaged with a Commitiee of Miners in drawing up new Rules and Regulations for the Thames Gold Eields, which, when completed, were submitted for approval to His Honor the Superintendent. In April I visited Ohinemuri, and endeavoured to prevent the Hauliau Natives from handing their lands and those of the friendly Natives over to the so-called Maori King. A very angry discussion took place between Herewine te Rangai, of Ngatimaru, and the people of Ngatiwhanaunga about the disputed boundary at Hikutaia, which resulted in the discomfiture of the former. I was requested then to open the land there for gold mining, but refused to do so for fear of causing a quarrel between the miners and Hauhaus. I found it quite impossible to do anything towards the cession of the Ohinemuri District, owing to the opposition of Te Hira's party. His Excellency the Governor, accompanied by the Hon. the Colonial Secretary and other gentlemen, visited Ohinemuri just as the meeting was concluded. His Excellency and suite were very well received by the assembled Natives. I drew out a draft Proclamation of the new boundaries of the gold field, and submitted it to His Honor the Superintendent for approval. In it care was taken to except township reserves from gold mining, as well as the Native residence, cultivation, and burial-ground reserves, which were excluded by the agreements with the owners. The reason for this was that it was highly necessary that the same rules and regulations which were in force over the rest of the gold field should not be brought into operation within the township reserves. Incalculable damage might have been done if indiscriminate mining was allowed under valuable buildings and machinery. It therefore appeared advisable to limit the mining in this respect until special regulations could be made for working within and under the townships. His Honor the Superintendent having approved of the proposed Proclamation, and Rules and regulations, the same were published in the Auckland Provincial Government Gazette, on the 16th April, 1868. Subsequently I proceeded to "Waikato, to make preparations for His Excellency the Governor's visit to that district, and also to ascertain the correctness of reports about a contemplated attack on that place by the rebel Natives. About the 9th May information was brought to Auckland that alluvial gold had been found at Kennedy Bay, Harataunga, on lands belonging to a section of the Ngatiporou Tribe. I proceeded there on the 11th May, inspected the locality where gold had been discovered by Mr. George