G.—7

I expect the natural outlet from it will be by the Wairoa. Should my surmises prove correct the country might be suitable for Canadians or Nova Scotians, but not for emigrants fresh from the Home country. The lowest price mentioned by the Natives was ss. an acre, but this was a mere matter of form. The utmost value I place upon it, and that only if available roads can bo made to it, is at the outside 2s. per acre. I believe coal exists, as the Natives showed me some said to have been found on the land, a specimen of which I enclose. I have, &c, Tnos. McDonnell, Dr. Pollen, Government Agent, &c. Lieut.-Colonel, N.Z.M.

No. 2. Lieut.-Colonel McDonnell to the Hon. Dr. Pollen. Sib,— Auckland, 7th April, 1873. On my arrival at the Taheke, on the 22nd ultimo, I proceeded with Hone Mohi and others to Hokianga to see the block of land called Omahuta, situate at the head of the Mangamuka River. We were joined at Herd's Point by other owners of the land who had been warned to meet us here ; and the next day we went up the river, camped out, and the next morning we went over the block. I can only give a rough idea of the acreage, and should say it was from 10,000 to 12,000 acres, more or less. There is some very good rich land in the block, and some very indifferent, about equal proportions. There is a large quantity of kauri timber of first-rate quality. I may say that a more magnificent kauri forest I have seldom seen, and much of it is available to the ordinary method of getting it to market. Kauri gum is to be had in large quantities; the surface of the ground is in many places covered with it. I can recommend this block to the Government, if only for the very excellent timber and quantity of gum obtainable. I estimate the timber at many millions of feet. The price for which the Natives say they will sell is 12s. an acre, but from 2s. Gd. to 3s. will, I think, be taken; private individuals might be inclined to give more. If I may be allowed to make a suggestion, presuming this land is purchased by the Government, I would place settlers on this country that have been used to work at timber, such as Canadians or Nova Scotians. They could collect gum and timber a few days after they were located on their land, and so commence work that would not only provide them with the necessaries of life, but provide them with a handsome surplus to improve their respective lots. The boundaries of the block offered for sale are as under: Commencing at the stream of Tahekeiti, and on to Te Tupapa, Karakarere, Te-Wai-o-Pukekohi, Tuara, Whakapai, Te Hutu, Paia, Katutu, Te Turc, To Papa, Te Pihatanginoa, Eatakamaru, Puketawa, Ohawhe, Te Kakauhere, Eahui Kokoromiko, Te Kiripaka, Turangakou, Te Waiaira, joining again to Te Tahekeiti. I have, &c, Tnos. McDonnell, Land Purchase Commissioner. The Hon. Dr. Pollen, Government Agent, Auckland.

No. 3. Lieut-Colonel McDonnell to Mr. J. Knowles. Sic,— Auckland, 7th August, 1873. I have the honor to report my return from the Northern District of Auckland, and state, for the information of the Government, that, on proceeding to Otamatea from here to see Arama Karaka about the Little Barrier, and his.grievance respecting the land purchased by Mr. Thomas Henry, of "Whangarei, I met Arama Karaka at Helensville on the 2nd July. He was on his way up here, a writ having been taken out against him. After a conversation between Arama Karaka and myself about the 500 acres of land he lays claim to, though occupied by Mr. Henry, he agreed to take 6s. an acre, or £150, for his claim on the land; but he declared emphatically that his treatment had been most unjust, and that he consented only in consequence of his being pressed for money. I wrote a telegram and sent it to Major Green, in Auckland, for transmission to Wellington, acquainting the Government with what had passed. I spoke to Arama Karaka about the Little Barrier Island, and, from what he and other Natives have told me, I believe that Arama Karaka and Hori to More are the principal owners. Arama is willing to sell the island, and asked me to go and see the quality of the land and timber on it before anything further is said. I think it may be purchased at a fair price, and, should the Government wish to dispose of it again, a large profit might be realized, for, had it not been understood it was Government property, it would have been bought some time ago. I will wait until I receive instructions before I visit and report on the island in question. On the 3rd July I proceeded to Mangawhau to sec Parore and Tirarau in reference to the Mangakahia land, and gained the information required; after which, with some trouble, I procured a Native to accompany me to Maugakahia, but did not reach Mangakahia till the morning of the sth. The Native proved ignorant of the road, and we were over fifty-four hours in the bush without food of any kind, and it rained all the while, making a heavy fresh in the rivers we had to cross. On arriving at Mangakahia I met the chiefs Matiu and others, aud, subject to approval, arranged for a piece of land called Peka-

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