No. 12.
Mr. Preece to the Chief Commissioner.

I herewith transmit the deed of part of the Ahuahu Block, which I purchased yesterday. It contains full half of the island; the remaining part of the island I could not agree for. I offered them the fixed price, but they demanded much more. They now have agreed to refer the subject to you for your direction. I shall be ready to pay them when I get your directions. Two deposits have been made some time past—one on Rawiri's claim of Forty pounds (£40), and one on Anaru's of Five pounds (£5).

Anaru is deputed by the others to wait on you. It would be well, if it could be done, to secure the whole island; but the two most important claims are Matenga's and Karaitiana's. Matenga will be here on Monday about his. Karaitiana I do not know what to do with; his is a very important claim, and should be secured at any price.

I think that it would not be well to take any notice of the deposit he had from you. Please to look to the map and see the harbour, and his claim in connection with it. You may depend that it will soon be needful for the Government to put some one there, as that is the station at which more smuggling is done than any other harbour in the land.

Yesterday the Natives were here about Wainuiototo; all the three parties have now agreed to part the money equally between them, but we could not agree about the price. I offered them Two hundred and forty pounds (£240), which would be Eighty pounds (£80) for each party, but they want Three hundred pounds (£300), and are going to you about it.

I believe that they will take what I have offered when they find that no more will be given. Three reasons I think may be named for purchasing.—First, it contains a very large proportion of kauri, which will at no distant time be of no small value. Secondly, it is commencing the purchase on the other side of the range, which, however long it may be delayed, will eventually be made. In the third place, it is a piece of land that has been contended for for at least two generations; the purchase of it will prevent any further dispute.

With respect to the Awakanae Block, I have seen Maihi, but as yet I have not been able to come to any conclusion. I find from all parties that the internal boundaries as marked by Mr. Heaphy on the maps are incorrect, half of what is marked as Maraea's belongs to Maihi. All the outer boundaries are perfectly correct; it is only the division between the land of each party; but as Maihi has a claim to meet soon, I have offered him Three hundred and twenty pounds (£320) for his claim, as that contains what is most wanted. I have not as yet had an answer. Horopeta will sell his, and Maraea could be left for the present.

All the plans are made on the deed, and ready waiting. I fear that not much land will be sold except the purchase money is increased; the Natives have by some means got to know the price that Keven's land has sold for, which will be very injurious here for some time.

July 17th.—Since writing the above, I have had the honor to receive your letters of June 29th July 6th, and July 13th.

The map of the Matakitaki Block, the printed deed, and the general map of the Mercury Bay District, mentioned by you as sent, have not as yet come to hand; they must have been left behind.

I return one letter which must have come by mistake as it is for some person at Maungatautari.

I should be glad to know by what party of Natives the islands mentioned by you are offered for sale, as that would be a guide to me in negotiating for them. When I go to Whakatane I shall be able to examine all the islands, as I believe that they want to sell several more; it would, I think, be well to purchase all that are worth anything, as I believe that they will before long become of value, when they may not be so easily procured.

There is a most valuable piece in this harbour near W. B. Moore's, which is offered; it is the place where the Custom-house will stand, if ever there is one here.

I shall purchase it without any regard to its acreage, as those small pieces cannot be purchased by that plan.

When the Collector of Customs was here, he thought it the only place fit for the Custom-house. Should it not be purchased now it would be difficult to get it.