A.—No. 12.

now unable to fulfil and discharge, whereby serious loss to the public interests and to the credit of the Corporation have resulted. We would therefore most respectfully but urgently request that you will move the Government to take immediate steps for the payment of the moneys now in its hands, which have accrued from the sources before alluded to, to the credit of the Provincial Treasurer of Otago. We have, &c, J. Hyde Harris, M.L.C. J. Cargill, M.H.R. Jas. Paterson, M.H.R. William H. Reynolds, M.H.R. D. F. Main, M.H.R. Robert Campbell, M.H.R. George Hepburn, M.H.R. C. E. Haughton, M.H.R. J. B. Bradsiiaw, M.H.R. Julius Vogel, M.H.R. John McLean, M.L.C. D. H. Mervyn, M.H.R. A. Buchanan, M.L.C. James Macandrew, M.H.R. Charles O'Neill, M.H.R. A. J. Burns, M.H.E. The Hon. the Colonial Secretary, Wellington.

No. 4. Copy of a Letter from the Hon. E. "W. Staffoed to the Otago Members of General Assembly. (No. 861.) Gentlemen", — Colonial Secretary's Office, Wellington, 23rd July, 1867. I have the honor to acknowledge the receipt of your letter of the 12th instant, requesting that the moneys which have accrued from the occupation of a certain reserve in Princes Street, Dunedin, granted to the Superintendent of Otago, and which are now in the possession of the General Government, may be paid. In reply, I have to state that the Government, after a careful review of all the circumstances of the case, is of opinion that the payment requested should be made, and will consider in what matter this can be legally effected. I have, &c, Messrs. J. H. Harris, M.L.C.; J. Cargill, M.G.A. j E. W. Stafford. J. Paterson, M.G.A., and others.

No. 5. Copy of a Letter from the Hon. E. W. Stafford to His Honor the Supebintendent of Otago. (No. 342.) Sib, — Colonial Secretary's Office, "Wellington, 21th July, 1867. I am advised that as the Princes Street Eeserve is vested in you as Superintendent, you only, and not the Corporation of Dunedin, can be recognized as the recipient of the rents. I am also advised that as proceedings are threatened, and are, it is believed, about to be commenced, with a view to obtaining a declaration of the invalidity and cancellation of the Crown Grant of these lands, I should not be justified in handing over these rents except upon an undertaking from you as Superintendent, on behalf of the Province, that in the event of the Crown Grant being declared invalid in a Court of competent jurisdiction, or "by the Legislature, or in the event of the right or title of any persons, other than yourself as Superintendent, to these moneys being established in a Court of competent jurisdiction, or declared by an Act of the Legislature, the moneys paid over will be refunded to the Colonial Treasurer. I shall also require a similar undertaking in general terms to guarantee the Crown and Government of New Zealand against all claims which may be made in consequence of the payment of these moneys to you as Superintendent, On receiving from your Government a communication to the effect that it undertakes the guarantee above mentioned, I will cause the rents to be paid over to the Provincial Treasury. I have, &c, His Honor the Superintendent, Otago. E. "W. Stafford.

No. 6. Copy of a Letter from His Honor the Superintendent of Otago to the Hon. E. W. Stafford. Ba,— "Wellington, 25th July, 1867. I have the honor to acknowledge the receipt of your letter of yesterday's date, intimating that the Government is prepared to pay over to the Provincial Treasury the arrears of rental which have accrued in respect of the Princes Street Reserve, Dunedin, upon condition of my entering into an obligation to refund the amount, in the event of an adverse decision of the Supreme Court as to the right to the City of Dunedin to the money in question. 2

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DUNEDIN PRINCES STREET RESERVE.