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purchase of land in the Middle Island, and stating the limits within which you are willing to undertake payments in extinguishment of the Native title to the land referred to. In reply, I have to inform you that I have forwarded to Mr. Kemp, the Commissioner appointed to conduct the negotiations with the Natives in reference to this question, a copy of your letter, and have instructed him to endeavour, if practicable, to carry out your wishes, but that if, unfortunately, any unforseen obstacles or difficulties should occur he must again communicate with me prior to concluding any final arrangements. I trust, however, that no such impediments will occur, but that, on the contrary, he may be able to complete the negotiations for the proposed purchase in a satisfactory and final manner, and in that case be enabled to pay over to the Natives, in accordance with your wishes, the first annual instalment. With respect to the boundaries of the contemplated purchase, Mr. Kemp has been instructed to extinguish any title to the tract of country in the Middle Island lying within the limits mentioned by you which may upon inquiry be found invested in the Native inhabitants thereof, making for them such complete reserves as may be required for their present and prospective wants. As the local Government have not any maps or plans relating to that part of New Zealand to which Mr. Kemp is proceeding, I have requested that officer to call on you and solicit the loan of any such maps as the New Zealand Company may have and be able to spare the use of for this service. I have, &c, Colonel W. Wakefield, &c. E. J. Eyre.

No. 3.—Mr. H. T. Kemp to Mr. Gisborne. Sir,— Wellington, 19th June, 1848. Agreeable to the Lieutenant-Governor's instructions conveyed to me in your letter of the 25th April, I embarked on board H.M.S. "Fly " for the Middle Island, to endeavour to acquire by purchase from the Natives the tract of country lying between Nelson and Otago Districts, and thereby to form one continuous and complete block of land. I have now the honour to report for His Excellency's information my return from that expedition, and it affords me much pleasure to be able to state that the deed of conveyance comprising the district referred to, extending over the West Coast, was duly executed by the Native chiefs on the 12th instant, in the presence and with the consent of the people; and I have every reason to believe that the whole of the proceedings gave them general satisfaction. The deed, together with its translation, and a map of the portion of land surrendered to the Company, I beg herewith to enclose. In carrying out His Excellency's wishes I have been greatly indebted to Captain Oliver for his ready co-operation and advice, and to Mr. Kettle, the Company's principal surveyor, for his assistance throughout the negotiations that took place-; and I trust I may be allowed through you to tender those gentlemen my best acknowledgments for the same. I propose in a separate letter to address you with reference to those portions of land already guaranteed to the Natives, as well as with regard to those that are hereafter to be reserved for them under the immediate sanction of the Government, and with reference also to the payment of the future instalments, having thought it desirable in my dealings with, the Native settlers to meet their wishes without, I think, deviating from the general tenor of my instructions. Under all the circumstances, I shall venture to hope that the arrangements I have made will meet with His Excellency's approbation, and at the same time prove satisfactory to the principal agent of the New Zealand Company, on whose behalf the land has been acquired. I have, &c, W. Gisborne, Esq., Private Secretary. H. Tacy Kemp, Commissioner pro ton.

Mr. H. T. Kemp to Mr. Gisborne. Sir,— Wellington, 20th June, 1848. In continuation of my despatch addressed to you on the 19th instant, I beg to state, with reference to the reserves intended for the Natives in the newly-acquired block of land between the Kaikouras and Otago, that, in obedience to the Lieutenant-Governor's instructions, their pas and cultivations have been guaranteed to them, as expressed in the deed of sale; they are, generally speaking, of comparatively small extent. Beyond these I have not felt myself authorised in making any guarantee, and with the consent of the people, have thought it better to leave the subject to be considered and decided upon between the Government and the Company, as soon as the survey of the district shall take place. By a reference to the map accompanying the deed of sale, His Excellency will perceive that, while there are several Native settlements upon the line of coast between Akaroa and Otago, the inhabitants are but small in number, and, as they are widely scattered, I saw there would be great difficulty in inducing them to concentrate into one or even two blocks. In the event, therefore, of its being decided upon by the Government that they should have blocks reserved adjoining each of the settlements, I think there would be then but little obstacle, and little or no interference with the interests of the Company in the division and survey of the district. The Natives clearly admit to have sold the whole of Banks Peninsula to the French company, With the resident Natives chiefly at Port Coopet and Pigeon Bay, I did not think it advisable on this account to enter into any arrangements with regard to the reserves, and knowing also that the question was one at present pending between the English and French Governments. My impression is that no definite reserves were made for them by the French agent at the time of sale, and that they continue to occupy the cultivation grounds they formerly did, and without any limitations whatever. 2—l. 8.