No. 1.
The Superintendent of Nelson to the Hon. the Colonial Secretary, Wellington.

Sir,—

In carrying out the instructions of His Excellency the Governor-in-Chief relative to the purchase of the block of land in Massacre Bay, which has not been alienated by the Natives, I went over a great part of the tract, accompanied by Mr. Tinline, the Native Interpreter, and several of the chiefs who have an interest in the land, previous to entering into any negotiations with them. By this means I ascertained that the available portion, although considerable, was neither of the character nor quantity to warrant me in recommending His Excellency to give the price (£1,000) they demanded for it. The chief value of the district consists in the minerals, particularly the coal, which is in great abundance, and of the same good quality as the sample which was tried before His Excellency while at Nelson.

The seam, or rather field, is of great extent. We walked about three miles over it up a stream called the Pakawau. In several parts it jutted out four or five feet, and it is evidently of considerable breadth, as the same indications appear in the small rivulets which run into the Pakawau as exist in that stream. There are great facilities for working this coal: barges can enter the Pakawau at halftide to within a mile and a half of the commencement of the seam, and at high-water, if spring tides, can reach to about two-thirds of the distance. The seam also lies in a horizontal position, with good natural drainage, and so near the surface, as was traced by the bed of the stream, that a large supply can be obtained for many years by merely quarrying.

There is scarcely any perceptible rise through the small valley at Pakawau, which forms a pass between the hills from Massacre Bay to a large harbour called Te Whanganui, on the West Coast, and I understand from engineers acquainted with the locality that a good tramway (the materials for which are on the spot) could be laid down, at a trifling cost, between the coal and where the barges would take in their lading.

Plumbago exists upon a hill sloping into the Pakawau, which appears easy of access; and copper is said to have been found in the rocks behind Tamatea Pa, on the sea coast, and a short distance from this valley.

With the prospect of such abundance of good coal and other valuable minerals in the district, I was the more anxious to acquire it for the Government at once, as the longer the purchase was delayed (it appears to me) the more difficult it would be of accomplishment, for I found the cupidity of the Natives had already been aroused by the reported value of the minerals upon their land, and if they were advised that it would be more to their interest to retain the ownership, the present opportunity might be lost of acquiring it. I therefore arranged with the Native chief William King Te Koihua, who resides at Pakawau, for the purchase of all the land commencing from the limits of the late New Zealand Company's survey at the mouth of the Aorere to Cape Farewell and the Sand Spit, and the page 290West Coast from Cape Farewell to Te Whanganui, including the latter harbour, for the sum of £500, out of which he engaged to settle with the other claimants connected with the district; but having had an opportunity of seeing some of these claimants on the subject since the above arrangement, I observed that William King's influence was not sufficiently recognized over a portion of the district, and objection was made to these terms; but I entertain no doubt that if His Excellency would place at my disposal a further sum of £100, making the purchase-money £600, that I would be able to conclude, finally and satisfactorily with all parties, for the acquisition of so valuable a district to the Nelson Settlement.

In my progress through the district of Massacre Bay I was grieved to find so many pas deserted, and those that were occupied so miserable in appearance and containing so few inhabitants that I suggested to them the advantages of congregating in one or two places where villages might be formed, schools established for their children, and places of worship erected; and pointed out to them at the same time the impossibility of their improvement whilst living in this isolated state. I anticipate that this advice will be acted upon except in one or two localities, where the old inhabitants expressed great reluctance to leave the places where they had buried their fathers and children. Such an appeal could not be resisted, and I promised that reserves should be made for them.