No. 56.
The Under Secretary to the Town Clerk, Dunedin.

Sir,—

I am directed by Mr. Stafford to acknowledge the receipt of your letter of the 29th ultimo, applying by direction of the City Council "for certain moneys in the hands of the General Government on account of the reserve lately known as the Maori Reserve, Princes Street South, Dunedin."

Mr. Stafford is not aware of the grounds upon which this application is made. The land in question has been granted to the Superintendent of Otago as a "Reserve for public wharves and quays, and other purposes connected therewith of public utility to the Town of Dunedin and its inhabitants."

There appears to be no power to transfer rents accruing on account of this land, previously to the issue of the grant, either to the grantee or the City Council of Dunedin.

A Bill will be submitted to the General Assembly next session for determining doubts as to the appropriation of the land and the funds arising out of it.