Awakino Block.

7. With reference to the block offered by Takerei, I beg to report that no obstacles exist in respect to it. Still the same opposition was made by a majority of the Natives to my proposal to extend the boundary inland, and the result of the conference was the same as at Mokau. The quantity of land comprised in this block is about 16,000 acres, but it is, as will be seen from the sketch, a mere strip along the sea-coast, and the land is very broken and hilly, thickly covered with wood, and extremely difficult—in many cases impossible—of access. The reserves asked for were very small, and were in all cases left entirely to my discretion.

8. I took care to explain to Takerei that the acceptance of his offer would depend in a great measure upon the purchase of the land at Mokau, and that if Peketahi's party persisted in refusing to increase their block, it was most probable that His Excellency would refuse his offer, especially as there was a difficulty about extending the boundary so as to include the available land on the banks of the Awakino. Ta Kerei seemed greatly disappointed at this, as he has for years been extremely anxious to have Europeans settled in his district, and has spared no exertion in endeavouring to obtain the consent of the Natives to my proposals.

9. With regard to the question of price, I made no proposal whatever with respect to the Mokau Block, telling the Natives that when they offered a piece of land worth having it would then be time enough to talk about the price. With regard, however, to the Awakino Block, I think that, should His Excellency deem it advisable to continue the negotiations, it could be obtained for a sum of Five to Seven hundred pounds, paid in three or four annual instalments, but I thought the better course was not to press the question too much at that time, to, avoid in any way leading the Natives to calculate upon the land being purchased by the Government.