G.—B.

22

I returned to Otaua on the 27th March, and the Natives were prepared to accept what I had proposed, and I have paid them £150 on account of the block. I am happy to be able to state that, although the interference alluded to caused me much extra trouble and delay, the Government are in every way gainers by the present arrangement, as some of the roughest and least available land is cut out of the block, being included in that set apart by Te Haurangi as Mr. White's purchase of Is. 6d. an acre, and the land added to what remained to mako up the block to its original area is of better quality, and more accessable from the Otaua valley, and will, I hope, lead to the purchase of a fine block situated there. I had, therefore, no hesitation in concluding the arrangement of the block as reported, and trust the Government may approve of the action taken. I have, &c, The Hon. Dr. Pollen, Auckland. Thomas McDonnell.

No. 24. Maihi P. Kawiti, to the Hon. the Native Minister. [Translation.] Friend, — Kawakawa, Bay of Islands, 10th February, 1873. Salutations. lam wishful that a mill should be erected for me, that is to say, for my tribes ; a mill which will grind wheat and and also prepare flax, the two to be in one building. I think the Government should consider us, and advance £800 toward the erection of same, We will give our land as security for the amount. If the Government are not agreeable, then do you send us a reply on receipt of this letter. Friend, this is my great wish that we should have a mill erected at Kawakawa, which will raise us up and make us more prosperous. This letter I will hand over to our European friend. I have told him to forward it to you, together with an English one from himself, in order that you may understand the subject of this letter. I have, Ac, The Hon. D. McLean. Maihi P. Kawiti.

No. 25. Mr. H. T. Kemp to the Under Secretary, Native Department. Sir,— Native Office, Auckland, 15th May, 1873. Referring to the application recently made to the General Government by the chief Marsh Brown Kawiti for the sum of £800 to assist him in erecting a flax and flour mill combined on the banks of the Kawakawa, Bay of Islands, I have the honor to report that under instructions from the Hon. the Native Minister, I proceeded to the spot to ascertain as far as possible the nature of the title to the land offered in consideration, its position, extent, and general capabilities for settlement under the Public Works Act. Herewith I enclose a sketch of the block offered for sale from a tracing made by Kawiti himself and which I found on a personal inspection to correspond with the boundaries and lines laid down by him on the ground. First, as to title; with some previous knowledge of the Native claimants to the lands in this district, I think I am able to say that in this case Marsh Brown is the principal and only claimant. Secondly, as to position, extent, and general capabilities ; I have to state that this block—known as the Touwai —joins the Ruapekapeka block of 19,000 acres, formerly purchased for the Government by myself, including the coal mine. It is distant from the settlement of Waionui about three miles, and from the deep water landing at the coal mines, about five miles. It is at present about 7,000 acres in extent. It is far from being level, but nevertheless available in may parts for location; is well wooded with some good kauri and totara and other useful fencing timber. It also comprises a kauri gum field, from the royalty of which Marsh Brown and the other principal claimant derive a small annual income paid by the Native and European diggers, the latter of whom number now about forty persons, who dig all the year round. A settler and merchant residing at Kawakawa expressed to me his willingness to rent the whole field from the Government whenever the Native title was extinguished, thus paying good interest for the purchase money at once. Enclosed herewith is Marsh Brown's letter to Hon. D. McLean, by which it will be seen that after some discussion it was determined that the sum of one shilling and sixpence per acre should be paid subject to approval, the Government to pay the cost of survey, which I may here state would be comparatively small. The lines on the Ruapekapeka and Hemi Tautari's block having already been laid off little remains to be done but the traverse of the. western line, which after some discussion and at my request, is fixed on the present foot and horse track, leaving only the back or south-west boundary —which is forest —to be cut if so required. Finally, the cost of erecting the mill, which is to be worked by steam power, is estimated at twelve or fourteen hundred pounds. If completed it will doubtless be a great boon to the whole district, and will be the means of encouraging more largely the growth of wheat as well as of flax, for which much of the land is well adapted, as well as great facilities of water carriage to the site chosen for the mill. I propose, therefore, respectfully to recommend for the approval ofthe Hon. the Native Minister that the sum of £800 be advanced at once to Marsh Brown Kawiti on the following terms. Ist. That in the event of the area of the block as at present offered not being sufficient at the rate of one shilling and sixpence per acre to cover the sum of £800 thus asked for, that then the boundaries should