Despatch from Governor Grey to the Right Hon. Lord Stanley.

My Lord,—

In reference to those portions of your Lordship's Despatch No. 28, of the 15th of August last, which directed me to notify that I would for the present waive, in favour of the New Zealand Company, and of no other person, the Crown's right of pre-emption of all lands and rights belonging to the Natives within those portions of the Northern and Middle Islands which are usually termed the Company's districts, as originally defined in the arrangement with Lord John Russell, I have the honor to enclose the copy of a Proclamation which, in fulfilment of these instructions of your Lordship, I issued upon the 21st of February last.

I beg further to state, in reference to your Lordship's directions, contained in the same Despatch, that I should make the Company an unconditional grant of the 400,000 acres purchased at Otago, excluding, of course, the land reserved to the Natives. I have to report that I directed the Crown Solicitor, after conference with the New Zealand Company's Principal Agent, in order that no misunderstanding might occur, to prepare such a grant for my signature, and that the details of the grant having been agreed upon, and the document itself prepared, it was yesterday formally executed by me.