J. R. Godley, Esq., to the Colonial Secretary.

Sir,—

I am informed by Mr. Watson, Resident Magistrate at Akaroa, that the Native claim to a a block of land south of Akaioa, at a place called Lake River, has not yet been extinguished.

This information has completely taken me by surprise, as it has always been understood by the Canterbury Association that the Crown was in possession of the whole district which they have been empowered to dispose of and convey, and the Canterbury Settlement Act is evidently founded on the hypothesis that such is the fact, for I find that no exception in favor of Native property made in the schedule describing the land with which the Association is authorised to deal. I shall be very much obliged if His Excellency the Lieutenant-Governor will inform me whether any such claim is recognised hy Government; and if so, I trust he will give instructions to have it extinguished as soon as possible, as I am bound to give possession to purchasers of any land in the Canterbury district which they may page 8select; and if there be a Native claim to any such land outstanding, serious difficulties may be the result.

[Memorandum on Above.]

The sketch in the letter herewith shews the portion of the Peninsula the claims to which are still unsettled, the Natives there having refused to accede to Mr. Mantell's proposals for arrangement. All that part within the Waikakahi boundary is thus unsettled, the Natives having received payments from the French for parts of it. Of course, the local Government knew nothing of the intention of the Home Government to put the Peninsula into the Canterbury block.

[Memorandum on Above.]

Mr. Domett,—

Reply that I arranged with the Natives; when at Akaroa, that they would sell this land for £200, receiving also a certain reserve which was to be adjusted by Mr. Watson. If, therefore, Mr. Godley will send over a surveyor to Mr. Watson, and the sum of £200, to be paid by the Association, who have all the land fund of the Canterbury district at their disposal, this matter will be at once adjusted by Mr. Watson.