Enclosure No. 1 in No. 13.
Copy of letter from Lieutenant-Governor Eyre, to the Board of Management of Native Reserves, Nelson.

Gentlemen,—

In reference to your appointment and duties as a Board for managing the Native reserves, I have the honour, by direction of His Excellency the Lieutenant-Governor, to enclose the copy of memorandum showing the circumstances under which the Board was appointed, and the general principals on which the Government propose to act with regard to the reserves.

As it is desirable that the present state of all existing circumstances should be enquired into as speedily as possible, and steps taken to make such new ones as may be most beneficial to the interests of the Reserves Fund, His Excellency desires me to observe that it would perhaps be useful, were the Board to have a preliminary meeting for the purpose of considering the question generally, and fixing upon some stated days for receiving applications for land, or for such other objects as the duties devolving upon them may render necessary, due notice of such days, or any other public intimation which the Board might wish to give with regard to the reserves, could then be inserted in the Gazette.

The Board will of course propose some general principles for their guidance in letting lands, and as a general rule, it would be politic to encourage the construction of permanent buildings of brick or stone, by giving a right of renewal of lease at moderately increased rents, or some other similar arrangements. As a general rule it should also be understood that the fund does not repair or improve buildings, fences, &c., or receive any such improvement at valuation at the expiration of the leases,

It would also be desirable if possible to establish the principle, as universally carried out by the New South Wales Government, of requiring rents to be paid in advance.

Similar terms or others which the Board may consider more desirable or practicable, might constitute the general rules, but many cases would require to be considered separately, and upon other grounds; and it will be especially necessary in reference to all existing arrangements to take each case upon its own merits, and make such recommendations as fairness and equity may require.

As each case is investigated and a recommendation made upon it, the Board will lay it before the Lieutenant-Governor for approval, prior to the arrangements suggested being carried out; the Crown Solicitor will then be directed to prepare any legal documents which may be necessary, or to conduct any legal proceedings which may be determined upon.

Instructions have already been given to the Treasurer to receive any payments which may become due from the leasing of the reserves, and to keep such receipt under a distinct heading, to be denominated the "Native Reserve Fund."

This Fund it is proposed should be from time to time drawn upon and be appropriated by the Lieutenant-Governor acting under the advice of the Executive Council of the Province, to objects having in view the welfare and advancement of the Native race.

It will be desirable for the Board to open a book, in which should be entered the number of any section let, its situation and acreage, the terms of the arrangement made, the periods when rents become due, &c., and every three months a copy extract shewing what rents are falling due, should be fowarded to the Crown Solicitor, that he may recover or collect them.

It will be necessary occasionally, for the Board to engage the temporary services of a clerk to keep the book referred to, and prepare or copy any other documents required, and who, His Excellency considers, might be employed at the usual rate per day, when the Board meet, or when his services are required; or the Board might make an arrangement with some one to attend on such occasions and perform the necessary duties for a fixed annual remuneration.

The Lieutenant-Governor, is also desirous that a brief quarterly report should be transmitted to him by the Board, shewing the state, prospect, &c., of the Reserve Fund, and the increasing desire or otherwise of the public to obtain leases, as also any transactions which have been effected during the three months preceding the date of the report.

With regard to the amounts which the Board may assess as fair and just for the Government to allow to the Reserve Fund for any section which they may find it necessary to alienate for public purposes, it is not proposed to pay such sums over immediately to the fund, but simply to let a record of the circumstance, and the amount assessed be entered in the book kept by the Board until such time as returns showing the sums expended in procuring lands for the Natives, or in promoting objects, having in view their welfare and improvement, shall have been obtained and laid before the Executive Council and some general arrangements resolved upon for balancing the account as between the Government and the Fund.