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C—3

My reply to the first question is, that Sir George Grey did sanction the reservation o the kauri timber on the Tokatea and Kapanga blocks, that were handed over to the Government for mining purposes, because it had previously been sold to us by the Natives. My answer to the second question is, that our rights to use the water of the Driving Creek were reserved for us. My reply to the third question is, that the miners did considerable damage by silting up the creek with debris from their claims. We applied to the Superintendent, R. Graham, Esq., for compensation for the damage sustained by us ; he tendered us £350, which we refused to accept, and we consider that we have still a claim against the Government for damage done. Since 1859, and to the present time, we have continued to cut timber on these blocks, and still have the right to use the water of the driving and main creeks for purposes connected with our mill. I have, &c, To Mr. Mackay, Auckland. J. W. Ring.

Enclosure 3 in No. 2, I AGREE; on the part of the Government, to grant permission to Mr. Ring to dam up the main creek, and enjoy the privilege of driving logs up till the Ist November, after which time only with the consent of the Commissioner. The Government to protect Mr. Ring in his right to kauri timber, and further to give a sum of £350 sterling for injury sustained. Robert Graham, i 4th March, 1863. Superintendent. By Authority : Gxobgb Didsboby, Government Printer, Wellington.—lB7s. Price 9d.]