The Acting Native Secretary to Mr. J. Mackay, Junr., Assistant Native Secretary.

Sir, —

I am desired by the Minister for Native Affairs to acknowledge the receipt of your letter of the 12th February, reporting the existence of a payable gold field on the Native Reserves at Taitapu, and forwarding the agreement entered, into by you on behalf of the Government with the Native proprietors of that reserve, for the carrying on of gold mining there.

In reply, I am desired to convey to you the entire approval of His Excellency and the Government, and to express to you the high sense they entertain of the skill and good judgment evinced by you in all the steps you have taken. It is with great satisfaction that the Government have learnt the willingness of the Natives to permit the peaceable pursuit of gold mining on their own land, and the promptitude with which you have met and provided for what might have been a great difficulty.

It does not appear that further powers are necessary to be sent you at this moment; and the Government rely entirely on your prudence and discretion in taking upon yourself any new responsibility that the exigencies of the case may hereafter require.

I take this opportunity of enclosing you an extract from the deed of cession of Taitapu, with the plan annexed, in order that you may have them for any reference that may become necessary.