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G.—B

be so extended as to cover that amount, and that in the meantime the site chosen for the mill together with the machinery and buildings shall be held under mortgage by the Government as security, which under the above-named conditions Marsh Brown Kawiti would be" very willing to give. I have, &c, The Under-Secretary, Native Department, Wellington. H. T. Kemp.

Enclosure in No. 25. Maihi P. Kawiti to the Hon. the Native Minister. [Translation.] Friend, — Kawakawa, Bay of Islands, 9th April 1873. Salutations. Mr. Kemp has arrived for the purpose of ascertaining and enquiring into the facts in reference to the application I made to you for assistance to erect a flour and flax mill which shall be for the benefit and support of my own people, and also that of my European friends. Now then, listen, this matter has been carefully turned over by myself and Mr. Kemp, and the result has been that a block of land has been set aside for this object. The land so offered is near to the Kawakawa river, and, in fact, joins the block of land I sold to the Government some years ago, known as Ruapekapeka. The sum I asked of Mr. Kemp was 2s. per acre, and the cost of survey to be borne by the Government and the Crown grant. Mr. Kemp replied that Is. 6d. be given, and the Government to bear the cost of survey and the Crown grant. As it is for you to decide the price you may consider fair and reasonable, my request to you is this, be considerate, let no delay take place, so that we may commence the work of putting up the mill while the fine weather lasts, so that the finish of this work may bo successfully carried out as a saving help for the whole people. I have. &c, The Hon. D. McLean. Maihi P. Kawiti.

No. 26. The Under-Secretary, Public Works, to Mr. H. T. Kemp. (Telegram). Wellington, sth June, 1873. Re your letter 15th May. Purchase Kawiti's block. Approved as you suggest. Boundaries to be extended to cover £800 advanced if no obstacle in the way rather than mortgage of mill. Telegraph when purchase is complete, that money may be sent. John Knowles, Under Secretary Public Works.

No. 27. Mr. H. T. Kemp to the Under Secretary, Native Department. Sir,— Native Office, Auckland, 24th June, 1873. In continuation of my former report ofthe 15th May and agreeably with instructions conveyed to me through the Under Secretary, Public Works Department, by telegram No. 1,263, of sth June, I proceeded to the Bay of Islands to explain to the chief Marsh Brown Kawiti the wishes of the Government, as far as an extension ofthe boundaries of the block he proposes to sell. I have the pleasure to report that after entering fully into the details of this question, he has not only agreed to extend the boundaries so as to cover the amount of £800 originally asked for by him as an advance towards the erection of a flour and flax mill, but has promised to use his influence to extend the block so as to connect it with other large blocks over which the Native title has already been extinguished at the same rate, viz., one shilling and sixpence per acre. Negotiations have so far advanced that I have already employed a surveyor (Mr. R. Fairburn), who knows the district, and thoroughly understands the language, at contract prices, to complete as much ofthe outline survey as cannot be obtained from former surveys made by the Government in this district. As one effect arising out of these negotiations, I am also glad to be able to report that the long standing dispute as to the use of the tramway line by the Kawakawa Coal Company has been at length amicably settled and the lines of the water terminus fixed during my visit, reserving the remainder for the site ofthe mill. I now beg leave to recommend that the sum of £SOO be placed to the credit of Marsh Brown Kawiti at the Bank of New Zealand, Auckland, for which I shall take his receipt in due course. I have, &c, The Under Secretary, Native Department, Wellington. H. T. Kemp.

No. 28. His Honor the Superintendent of Auckland, to the Hon. Colonial Secretary. Sir,— Wellington, 23rd July, 1873. I have the honor to acknowledge receipt of yours of the 14th inst., covering copies of reports relative to the acquisition of the Touwai block for which I thank you. I have, <fee, The Hon. Colonial Secretary, Wellington. Thomas B. Gillies.