G.—4a.

4

twenty-one years, with a restriction as to the area each person should be allowed to hold, which in any case should not exceed 2.000 acres, the Government guaranteeing to the lessees a renewal of their term, so as to give intending settlers an inducement to lease and improve their holdings. What is required is to open up the country and populate it as speedily as possible; to enable this to be done we must work with the Natives for the time being, instead of in any way opposing their views, simply pursuing some such course as that indicated above, so as to prevent the alienation of the whole of this land, or its alienation in large areas, which would not conduce to the successful settlement of the Native difficulty. If some such plan as that suggested could be followed for a few years, I have not the slightest doubt but that long before the expiration of the first term the whole of these lands could be administered under some reserve scheme; but such a scheme for the next few years would be unbearable to the Natives, and one not likely to be appreciated. I am inclined to think that the policy just now with reference to these lands should be to conciliate the Natives, and not force them, because I am sure their intention is to open up the country very shortly. It would, however, be necessary for the Government to pass some measure through the Legislature, which would enable them to take action with respect to these lands at any moment. It appears to me what Tawhiao requires is that he should be recognized as the head of those tribes who agree to place him in that position, and that no negotiation affecting the lands of those people should be entered into without his being first consulted. He has no expectation of ever being recognized as King by us, and it matters very little by what title the Natives choose to designate him. This, I think, is one of the proposals of Sir Donald McLean which he dwells upon, when he says (e rua nga kupu a te Makarini), "He made two proposals which drew me to him ; if any one else makes similar proposals he will bear me off." The second, I think, refers to the return of certain confiscated land still unsold, and situated within that district commencing from Alexandra, then along the west bank of Waipa to Ngaruawahia, and then by west bank of Waikato Elver to its mouth. lam not aware how much land is still in the possession of the Government within this boundary. There are, however, two large compensation awards to friendly Natives, the one the Akau Block of ninety-six thousand acres given to Tainui and Ngatitahinga, which takes in all the coast country from Waikato to Raglan; the other contains about twenty-five thousand acres, awarded to William Barton's tribe, and extends from the "Waipa River to the head of the Raglan Harbour. There was also a proposal to appoint certain chiefs who were to be paid, and who were to assist Tawhiao in maintaining good order within his district: besides this, Tawhiao was to receive £500 a year ; this is probably the money to which he refers in his speech. Rewi told me that Tawhiao wanted Te Kooti to come and reside at Whatiwhatihoe, but he (Rewi) objected, considering it advisable that he should remain at Te Kuiti for a time. As far as I could gather from Rewi and other chiefs, it appears they are under the impression that Te Kooti, Purukutu, and those implicated with them, would ultimately be pardoned, but they evidently do not think this in the case of Winiata. I could not ascertain anything as to the whereabouts of the latter ; none of the Natives seemed to know where he had got to, one and all saying that since Tawhiao's visit to Auckland nothing had been seen or heard of him ; that when they returned from their visit to Auckland he was not to be found. Possibly, Winiata came to the conclusion that the opening of the country would follow this visit; therefore, deeming it unsafe, has removed to some other place where he is not known, and where he could preserve his incognito, and thus evade capture. There is a great probability of many of the hitherto friendly Natives, who have parted with the lands they obtained through the Land Court and also their compensation awards, joining with Tawhiao in the hope, no doubt, that they may be permitted to participate in what is left. It appears to me that it will be impossible for Tawhiao and his Kingite people to keep the lands locked up but for a very short time ; the real owners of the soil will bring so much pressure to bear on them that they will be forced to give way, if they desire to be recognized and consulted by the bulk of the people. There is no doubt that the King movement, as an opposing power, is played out, and Tawhiao will have to be most careful in the management of matters if he desires to possess the confidence of the people, who I am inclined to think are tired with the past state of affairs. They are one and all anxiously looking forward to derive some benefit from their long locked-up lands, and unless something is done very speedily Tawhiao will lose all control over his people. I do not quite comprehend the action of the southern people in uniting with the Waikato King party at this late hour, as their interests and mode of life apparently are quite different from that of the Hauhaus. The only way in which I can account for their conduct is to attribute it to a desire to receive an interest in what is left to Tawhiao and his people. For their grievances they have no one to thank but themselves; they are, as a matter of fact, simply wailing over spilt milk. Having parted with their lands, they are now regretting that they cannot get them back again to sell a second time. Though listening most attentively, I could not discover any other. There are some three hundred Natives under the leadership of Te Awha, of the Akitai Tribe, who are dubbed " Tekau ma rua," the Twelve Apostles. These people are adherents of Te Whiti's, and have for years been in the habit of paying a periodical visit to Parihaka. They keep aloof from Kingite affairs; consequently they did not attend the late meeting. Te Kooti, Purukutu, or other similar characters, did not come to Whatiwhatihoe. The Tekau-ma-rua reside at Kuiti. I believe Wahanui is shortly to visit the Taupo and other districts with the object of inquiring what lands are free, and also to compel those Natives who have entered into leases to carry them out. So far as I can gather, after the present term of these leases has expired, then Tawhiao will have to be consulted in all future disposals of these lands ; that is what he desires. It remains, however, to be seen whether he will be able to carry them out. From a long talk I had with Hone te One, the leading Kawhia chief, I understood that he and his people were anxious that Kawhia should be opened, and that they had spoken to Tawhiao on the subject. I have no doubt that this harbour will shortly be opened.