Copy of Memorandum by Mr. Alexander Mackay, to the Hon. the Native Minister.

The County Government of Westland, in consequence of the roadway fronting Sections 38, 39, and 40, Native reserve, Arahura, having been washed away, propose now to make a road at a cost of £400, between Sections 34 and 38, and along the rear of the Native reserve, for the purpose of giving access to the Native reserve land abutting the proposed line of road, and also to Greak's and German Gullies, in aid Of which they ask from the Government a contribution from the Native Reserve Fund to the extent of one-half the estimated cost. Although the amount asked for appears out of proportion to the benefit likely to be conferred on the property by the proposed line of road, but seeing that the estate has derived considerable benefit from the trunk road already passing through the reserve, a work done entirely at the expense of the local Government, I beg to recommend, under the circumstances, that a contribution of £200 should be made to the County Government out of the fund in aid of the work, under certain conditions, viz:—

First. That the County Government pay the sum of £100 demanded by Mr. Cassius in compensation for the line recently constructed through his leasehold at the Arahura instead of looking to the Native Trust to meet it.

Second. That in the event of its being found necessary by the Government to construct other lines of road through the property, at some future date, the Trust shall not be called on to defray any proportion of the requisite expenditure, of whatever nature, neither for the expense of forming such lines, nor for compensation demanded by the occupant of any land through which the lines of road may pass.

Third. That the local Government take back the 560 acres included in the reserve for road purposes, less the quantity already absorbed by roads (170 acres) off the upper end of the reserve, so that the beneficiaries may enjoy the full benefit of the land to which they are entitled, without fear of encroachment for the future.

Mr. Hoos, the County Chairman, has had these conditions explained to him, and he makes no objection.

If the last condition is carried out, the Native Trust will have to purchase 390 acres to keep the reserve its present size, the price of which, at 10s. an acre, as arranged, (see memorandum attached), will necessitate an outlay of £195.