Mssers. Richmond and McLean to the Private Secretary.

Sir,—

We have the honor to report, for the information of His Excellency the Governor, that in settling the Nelson land question we found it necessary to pay the Natives a sum of £320 for lands included in Mr. Spain's award in favour of the New Zealand Company, and which additional payment had not been foreseen in making the general purchase of the Nelson Province.

In the map signed by Mr. Commissioner Spain, it appears that certain lands were included, such as Separation Point, the cession of which to the Company has never been acknowledged by the Natives; and the claimants to this land stated to us, at a public meeting at Nelson, that the land had never been sold; that they had never signed any document transferring it; and, if such document existed, they requested that it might be produced, when they would, on the production of any deed or receipt to Which their names are attached, relinquish all claims.

We could not trace out any deed or other evidence of this land having been sold by the Natives; consequently, after full investigation of the subject, we deemed it advisable to make a payment of £150 for the Separation Point District, to prevent all further difficulties or disputes respecting it.

At Motupipi and Takaka a dispute had existed since the date of Mr. Spain's award, partly in consequence of some of the claimants not having received a share of the money awarded by Mr. Spain, and partly of their reserves not having been properly defined. This difficulty was overcome by making necessary reservations, and paying a sum of £60.

A similar difficulty occurred at Aorere, in the Massacre Bay District, and it was deemed advisable that these outstanding claims should be definitively settled, in order that Europeans might obtain undisputed possession of sections they had purchased in these districts, and on which, in some cases, gold had been discovered, rendering the speedy settlement of the Native claims a matter of urgent importance. A payment of £110 was made accordingly to settle this question.

The total sum expended to make good the whole of the disputed land included in Mr. Spain's award, amounts to £320. £300 of this amount was verbally authorized by His Excellency when at Nelson in November last; and we have now the honor to request that this amount, together with the additional sum of £20, which we found it expedient to pay, be submitted for the approval of His Excellency.