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No. 40. Hawke'e Bay, New Zealand, 22nd September, 1908. Dear Sir, — Ec Mokau. I have seen Mr. Chambers and the others as to the proposal that they should enter into an agreement with Mr. Lewis and Mr. Campbell with a view to special legislation, and they have asked me to say that, while they appreciate your efforts towards a profitable settlement, they would prefer to retire from the adventure —with their own money and interest as provided by the agreement with Mr. Lewis—leaving the others to take the full benefit of any such legislation. I have to thank you for your good intentions and for your considerate discussion of the position. I remain, &c, P. S. McLean. F. G. Dalziell, Esquire (Messrs. Findlay, Dalziell, and Co.), Solicitors, Wellington.

No. 41. 25th September, 1908. Dear Sir, — Ke Mokau-Mohakatino Block No. 1. I am instructed by the lessees of the Subdivisions If, Ig, Ih, and 1j of this block to bring before you the question of the early settlement of these subdivisions. As you are probably aware, the leases of these subdivisions were granted by the Natives in the years 1882 and 1889 for the term of fifty-six years, so that at the present time a period of over thirty years of the term has yet to run. It is no doubt within your knowledge that litigation has been pending in respect of this property for many years past, and that in consequence practically nothing has been done in the way of settlement of the lands. The present owners of the leases are now, however, in a position to deal with the land, and, as they cannot conveniently go into occupation themselves, they are willing to join with the Natives in any scheme which would facilitate the immediate settlement of the blocks in small areas. It has occurred to us that the course which would most efficiently facilitate the settlement of the block would be for the Native Commission to report upon the block, and for the property to be dealt with by the Maori Land Board under the Native Land Settlement Act, 1907. There would probably be no difficulty in arranging for the reservation out of the block of so much of the land as the Commission might think necessary for the occupation of the Natives. It might, however, lead to considerable complication between the Natives and our clients if any of the balance is required to be disposed of by lease, and the simplest course, therefore, would be to amend the provisions of section 11 of the Native Land Settlement Act, 1907, so that it would be left to the Governor in Council, on the recommendation of the Commission, to permit any part of the land to be sold. It is also possible that the provisions of section 22 of the Native Land Settlement Act, 1907, providing for residence upon lands disposed of, might be found detrimental to the successful realization of the property, and our clients therefore desire that if possible the Governor in Council should be given authority to dispense with this condition if it is deemed desirable to do so. All that is necessary for the purpose of giving effect to this proposal is the insertion of a clause in any Native Land Bill which may be passed by the House during this session modifying the provisions of sections 11 and 22 above referred to. This clause might take the following form : " Whereas it is desirable that the settlement, of the Mokau-Mohakatino Block Number 1, Subdivisions If, Ig, Ih, and Ij, should be facilitated : Now it is hereby declared that it shall be lawful for the Commission referred to in section 2 of the Native Land Settlement Act, 1907, to make inquiry affecting the said lands and report thereon, and thereupon the said lands or any part thereof may, with the consent of the lessees thereof, be brought under the provisions of the said Act in manner provided by section 4 thereof, provided that the provisions of sections 11 and 22 of the said Act may be modified to such extent as to the Governor in Council may seem fit. It is also hereby declared that any such Order in Council may provide that the Board shall not dispose of the said lands in manner provided by the said Act, but may, with the consent of the lessees of such lands, grant leases thereof in substitution for the existing leases, upon such terms approved by the Governor in Council as may be agreed upon between the Board and the lessees." We trust that you will see your way to introduce a clause to the above effect in the Maori land legislation of this session, in order that no further delay may take place in the settlement of these lands and we suggest that the proposal we have submitted is favourable to the interests of all parties concerned. The question of the respective values of the lessees' interest and the interest of the Natives is probably the only one about which there can be any question, and this our clients are prepared to leave to any reasonable tribunal, and we think that the course we have outlined will provide the most satisfactory settlement of this and all other questions. We have, &c, F. G. Dalziell, The Hon. the Native Minister, Wellington.

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