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The Hon Dr. Pollen to the Hon. D. McLean. oth March, 1873. I have obtained from Mr. Heale a plan showing the laud, which is submitted herewith for your information. Daniel Pollen.

The Hon. D. McLean to the Hon. Dr. Pollen. Auckland, 17th March, 1873. With reference to the accompanying proposal, I shall be glad if Captain Heale and you will inform me as to the following points : — (1.) What is the average value per acre of the block P (2.) What would be a fair estimate of the cost of making the pi'oposed road, so that it shall be fit for wheeled carriages. (3.) Generally, any suggestions you may think desirable to give on the subject. Donald McLean.

Memorandum by the Hon. Dr. Pollen. 22nd March, 1873. The making this road involves the main drainage works of the great swamp, since it is only by the effectual un-watering of it that the road would be practicable, the side drains of the road being probably a leasing part of the system of drainage. It is impossible to make any reliable estimate of the cost of such works, or even to assert their practicability, without some explorations, and the taking of flying levels over the whole swamp. Upon the information thus derived, and the conclusions as to its drainability to be deduced therefrom, a fair estimate of the value of the land itself can only be made. These are Mr. Heale's views, and have my complete concurrence. D. Pollen, General Government Agent.

The Hon. Dr. Pollen to the Hon. D. McLean. (Telegram.) Auckland, Bth April, 1873. No. 83. lie great swamp, I proposed that price of land be ss. per acre. Purchase-money to stand over for year. That application should be made in course prescribed in regulations for aid in making roads, and that scrip should be agreed to be given for one-half of actual cost of works. Such scrip to be received as part payment of purchase-money. Balance in cash. Russell will not accept this. He agrees to price of land. Requires an allowance of 2s. Gd. per acre for making road, but consents to render amount of expenditure, and to refund if actual cost of road is less than amount of allowance. He presses for an answer. "Will send the papers by mail. The Hon. D. McLean, "Wellington. Daniel Pollen. The Hon. D. McLean to the Hon. Dr. Pollen. (Telegram.) Government Buildings, 10th April, 1873. I consider Russell's proposals quite fair and reasonable, but I see no reason why the half of the purchase-money — i.e., 2s. 6d. per acre—should not be paid at once. The road should be sufficiently wide and available for wheeled traffic. The objections in the regulations to this arrangement can be met by an Order in Council. Dr. Pollen, Auckland. Donald McLean.

The Hon. Dr. Pollen to the Hon. the Native Minister. (No. 278.) Sib, — General Government Office, Auckland, 10th April, 1873. I have the honor to return herewith the letter of Mr. Thomas Russell, relative to the construction of a road across the great swamp from Hamilton to the head of the navigation on the Piako River, and to the purchase of the adjacent lands. In compliance with the instructions conveyed to me in your note of the 31st March—namely, that I should reply to Mr. Russell's application, I have proposed to him the following terms, with the understanding that if accepted I would recommend that the necessary legal steps should be taken to give them effect in those points in which they exceed the power of dealing with the confiscated lands deferred by the existing regulations : 1. That the upset price of the land (about 80,000 acres) shall be ss. per acre. 2. That the purchase-money shall be paid in — years (say two), or on the earlier completion of the road. 3. That, upon the purchase being effected, application shall be made by the purchaser, in terms of section 20 of the Land Regulations, for aid in making a road from Hamilton or Ngaruawahia to the head of the navigation on the Piako River, and that land scrip shall be issued in payment of onehalf of the actual cost of that work, to an amount which shall not exceed a moiety of the whole pur-chase-money. This scrip to be received at its nominal value in payment for the land at the time fixed. The balance to be paid in cash. Mr. Russell declines to accept these terms, and has made in writing a new proposal, which is annexed. The difference between us is that Mr. Russell, believing that a contribution at the rate of 2s. 6d. per acre will cover the whole cost of making the road, requires a remission in the price of the land to that extent absolutely, or with the modification that any difference between the actual expenditure on the work and the amount of the allowance shall be paid by him as a refund. Upon the plan proposed by me one-half only of the cost of the road would be paid by the public. If Mr. Russell be right in his conjecture, that an expenditure at the rate of 2s. 6d. per acre will