I.—3a.

F. H. J). BELL."

commence improving it, and the Natives would have had the benefit of those improvements at the end of the lease. You cannot take the land's value from the condition it was in through Mr. Jones's impecuniosity. Whoever purchased the lease would have improved the value of those lands, and the Natives were entitled to the inheritance which they would come into. 61. After twenty-odd years? —After twenty-six years. That is a very important matter. If you lease land at a very low rent you do so because you are going to get the land back at a very much higher value. 62. You said that a change came about in the mind of your committee which ultimately resulted in their consent to the sale, of which you were not apprised I— For some reason they were careful not to inform me that their minds were changing. 63. Mr. Tuiti Macdonald is a land agent, is he not?—l only know him as a licensed interpreter. 64. And a conductor of cases in the Native Land Court? —Yes, I think he is. 65. And Mr. Hardy—l do not know his connection with Native-land matters, but being a European I should say he knew what he was about? —I think he did. 66. At the critical moment they failed —both these gentlemen of experience and intelligence and business capacity in regard to Native-land transactions —failed to inform you of the proceedings which led up to the conclusion of the deal?—l think they arrived at the conclusion that it would be a very good thing if I did not go up there. 67. You say that the sale of the freehold by the Natives did not extinguish any claim against the Assurance Fund, supposing there was a claim?— That is so, and I do not see how it could. You might have got a release from some of the Natives, but it could not release the claim by the whole body. Ido not know what steps the Government may have taken to protect themselves, but assuming they have taken no steps the claim still remains, if it exists at all. Of course, I think it is all bogus—blank cartridge. May I add that Mr. Skerrett put it in because the time had nearly expired. If the six years ran from the registration of the first transfer to a purchaser, the time had very nearly run out. He put it in to save that. I do not think you will find that Mr. Skerrett has ever told you there is anything in the claim on the Assurance Fund. 68. He had to preserve their right of action? —If the time does not run from when that lease was first registered, or if you can find that Mr. Skerrett does not say so, 1 shall be very much astonished. 69. You have read Mr. Skerrett's letter to myself —the letter that is printed? It reads: " The existing leases reserve a very low rent, and are, generally speaking, disadvantageous to the Natives, apart from the circumstances that they keep the Natives out of possession of the land for some thirty years to come. Under these circumstances an arrangement between the Natives on the one hand and Mr. Herrman Lewis and his mortgagees on the other is very desirable, both in the Natives' interest and in the public interest. It is desirable in the interests of the Natives because it will put an end to what may be an expensive and long-drawn-out litigation, and will put an end to leases granted by my clients upon disadvantageous terms. It is desirable in the interests of the public because such an arrangement would at once make available for settlement a large area of land suitable for subdivision and sale, a condition of things much to be desired in the interests of the public generally and of the west coast of the North Island in particular. Negotiations have therefore taken place between myself as representing the Natives on the one hand and Mr. Dalziell as representing Mr. Herrman Lewis and his mortgagees on the other hand. I think that an arrangement can be made by which the Native owners should sell their reversion in the block expectant on the determination of the leases for a sum of £25,000, to be paid in cash within three months from the date of the contract. It would be a term of the contract for sale that Mr. Herrman Lewis should, within a period of three years, subdivide and sell the blocks of land in areas not in excess of the areas prescribed in Part XII of the Native Land Act, 1909, and that Mr. Lewis should not be entitled to call upon the Native vendors for conveyances or transfers of any part of the block except to purchasers of the same in the prescribed areas. The interests of the Natives will be protected, because if the purchase-money is not paid within three months they will be entitled to rescind the contract for sale, and the parties will revert to their legal rights anterior to the making of the contract. The whole arrangement will be made without prejudice to the existing rights of the Natives to avoid the leases or to re-enter and determine the leases should for any cause the sale not eventuate "? —Yes. I have quite an unfeigned respect for any opinion of Mr. Skerrett's, but I do not think he could have been serious when he wrote that about the Land Transfer Act. Mr. Skerrett supposed, evidently, that you would take steps to get the claim under the Land Transfer Act cancelled if you allowed the sale, but you have nol done it. 70. In your opinion, would the Crown be excused for taking action under advice so given, or opinion so expressed?— Mr. Skerrett was not advising you. 71. No; but on the opinion expressed there, would it?— You see, you ask me a very peculiar question. If you had acted on the advice given you by the Chief Justice of the Supreme Court and the Chief Judge of the Native Land Court, of course, you never would have agreed at all. Now you ask me to compare the Chief Justice and the Chief Judge of the Native Land Court with Mr. Skerrett. It is exceedingly difficult for me to venture an opinion upon that point. 72. I understand your position?—My answer to you is that you have the opinion of the Chief Justice and the Chief Judge of the Native Land Court, and if you are going to act on legal advice you should choose the Judges and not the lawyer. 73. You say that the leases under the Act of 1888 were validated?— They were directed to be registered; they were validated by the Act of 1888. That opinion is against the opinion offered by the Chief Justice and the Chief Judge; quite right. Mr. Skerrett and I are at one as to the leases, all except If — that the opinion of the Commission ought not to be acted upon without

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