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D.—sa

No. 15. His Honor the Supeeintendent, Auckland, to the Hon. the Peemieb. (Telegram.) Auckland, 23rd May, 1874. I hate nothing to add to what has already been stated in my letter to the Hon. Mr. O'Rorko — viz., that the Provincial Government are ready and willing to carry out my predecessor's promises and engagements with respect to provincial lands, but decline to interfere in any arrangement entered into by the General Government with Mr. Stewart in respect of lands which are not yet handed over to our administration. I cannot, on behalf of the Provincial Government, undertake responsibility to "request" the General Government to deal with Mr. Stewart on terms and conditions with the nature of which lam unacquainted. This was pointed out fully to Messrs. Kelly, Morris, and Johnson when they called. I found, however, at that interview, that Captain Morris, the representative of Tauranga in the Provincial Council, differed widely from Mr. Kelly in his views of the system upon which Kati Kati land should be disposed of. Kelly recommended " deferred payments," and Morris was in favour of "free selection," and occupation under Homestead Act, 1870. There must be some misunderstanding between Dr. Pollen and myself with reference to the "alleged agreement " on the regulations for the disposal of this block. The Doctor had a paper in his hand when he called with Mr. O'Eorke at my office, but I did not peruse its contents. I merely stated that, as the regulations prepared and submitted by Mr. Tole and myself were not accepted, I could do no other than act on whatever conditions were to be attached to the transfer of the block to our administration, so long as those conditions should be consistent with the terms of your memorandum conveyed to me in Colonial Secretary's letter while I was at Wellington. The Provincial Council is now in possession of the whole correspondence in our possession re Mr. Stewart's proposals, and a Select Committee has been appointed to consider and report upon the whole matter. I shall forward to Committee a copy of your telegram and of this reply, and the result of the Council's deliberations shall be conveyed to you. Pray request Dr. Pollen to forward to me copy of Mr. Stewart's letter received by him here, proposing terms on which he desires to get possession of block. I think Provincial Council should know the whole case. I cannot understand what grounds Mr. Kelly had for his opinion that lam not inclined to give Tauranga lands to Stewart if handed over to me. Mr. Stewart stated in one of his letters to me that he could rely with confidence on the promises of the General Government; but when I expressed displeasure at what appeared to me to be implied in this remark, he afterward called and explained. It was clearly understood by Mr. Stewart that so soon as he had made his selection of a block of land suitable for the purposes of his proposed special settlement of small farmers, that block should be set apart, upon giving his assurance that his people might be expected to arrive in the province within a reasonable time, to be stated. If not then arrived, the Provincial Government to be at liberty to throw open the land to be otherwise disposed of. Accept my thanks for acquainting me with the telegraphic correspondence between Mr. Kelly and yourself. J. Williamson, The Hon. J. Vogel, Wellington. Superintendent.

No. 16. The Hon. J. Vogel to His Honor the Superintendent, Auckland. (Telegram.) Wellington, 26th May, 1874. Mr. Stewaet's letter was to Mr. O'Eorke, not to Dr. Pollen; the former has been asked to supply you with a copy. I have not seen it, but I understand it comprised request to give Mr. Farnall a large grant of land. The Q-overnment are only anxious to do what is best for the Province. We are reluctant to give Mr. Stewart the land he wants, because he has not given evidence of ability to carry out the arrangement he proposes, with everything at his command; and notwithstanding assurances that he would be prepared with his emigrants, it turned out, as stated by the Agent-General, that not one single family had undertaken to join. Again, his proposal to bring out young men whose parents give him premiums of 150 guineas was obviously very objectionable. Again, the prospectus he published contains statements which would have given the emigrants right to complain when they arrived, and perhaps to ask for compensation. For example, it stated that the main line of railway between Auckland and Wellington would pass through the settlement. All things considered, we have determined to leave the Council to decide —Ist. Whether, in its opinion, Mr. Stewart has any claim on Tauranga land. 2nd. Supposing it is otherwise, whether it is desirable to let him have such land. If the Council is willing to decide, it must wait arrival of mail, which leaves to-day, and by which I will forward you all papers. It must be understood, however, that if the Council decide in favour of Mr. Stewart having Tauranga land, that the Government will impose restrictions such as that only a reasonable time will be allowed for carrying out agreement; that there be no power to sell or transfer concessions ; that no grant be given to Mr. Farnall; that Agent-General approve emigrants ; and that those who receive land pay their own passages. In the case of the Fielding Settlement, we give free passages, and the Corporation pay for the land. The land is really good; and if the emigrants pay their own passages, we will pay the province for the land, under the terms of the Bill of last year. To enable the Council to decide on the whole matter, I will also send a copy of the regulations for the sale of land at Tauranga, which it is proposed to gazette at once, if Mr. Stewart is not to have the land. I hare, &c, His Honor the Superintendent, Auckland. Julius Vogel.