No. 3.
Memorandum by Mr. H. Tacy Clarke, on Mr. Watt's letter of the 21st March, 1858.

Mr. Watt's impression with regard to the £2,000 retained out of the purchase money of Stewart's Island is correct. The interest upon it was to be expended for educational purposes for Natives resident in the Southland Province, as it was generally understood that the educational interests of the Natives in the Otago and Canterbury Provinces had been cared for when the Natives sold their lands in those Provinces.