No. 8.
H. T. Clarke, Esq., to the Superintendent of Southland.

Sir,—

Now that I am about to enter into negotiations with the Natives for the purchase of their page 58interest in Stewart's Island, I wish to bring the matter prominently before the notice of your Honor's Government.

The position in which I stand is, I conceive, rather an anomalous one. On the one hand, I shall be expected to purchase for the Provincial Government on the most favourable terms. On the other, I am instructed to have due regard to the interests of the Natives.

Under these circumstances, it appears to me to be necessary that I should come to some clear understanding with the Provincial Government before opening up the question with the Natives.

I would therefore submit the following propositions, for your Honor's consideration:—I would recommend that the sum of £6000 be set apart for the purchase of Stewart's Island, to be apportioned as Follows:—

First. One-third (£2000), to be paid to the Natives at the time of the execution of the Deed of Sale.

Second. One-third (£2000), to be held by the Government as a loan at an interest of 8 per cent. per annum. The amount of interest to be paid annually in certain proportions, to certain chiefs to be named.

Thrid. One-third (£2000), to be expended under the direction of His Excellency the Governor in the purchase of land in the Southland Province, as a reserve for Native, educational and other purposes.

These propositions, are I submit fair. The mode of payment will be easy for the Provincial Government, and at the same time the future interests of the Native will be Provided for.

The apportionment is in accordance with the spirit of the instructions sent to Mr. Heale, to which also I am referred.

With regard to apportionment No. 3, for Native, educational, land, and other purposes I wish to be clearly understood, that this arrangement has reference to Stewart's Island only, and does not in any way compromise any obligations which may have been entered into by the Government with the Natives at the time of the purchase of the Murihiku block.

The reserves necessary for the Natives will be two only;—one at Port Adventure, for William John Topi (Topi Patuki's half brother) and other residing in that locality; and one at Paterson's Inlet. It will also be necessary to reserve three or four of the small Island adjacent where the Natives procure the "titi," or mutton bird.

I wish also to bring under the notice of the Government the necessity of making some special provision for the half-castes now resident in Stewart's Island, over and above any interest derivable from the Native reserves.

May I beg of your Honor to give this matter your early attention, so that I may forward by the next mail the arrangement we may agree upon for the consideration and approval of the General Government.