Mr. Vernon Smith to Mr. Somes.

Sir,—

Lord John Russell has had under his consideration the letter which, on the 22nd ultimo, you addressed to him on behalf of the gentlemen who have been associated together under the name of "The New Zealand Company." In reference to my letter of the 29th October, informing you that in a few days the draft of an arrangement would be transmitted to you, and that Lord John Russell could not anticipate that there would be any condition to which the Company would entertain any serious objection, I now, by his Lordship's direction, transmit to you that draft.

Lord John Russell would be glad to be informed whether the Company are disposed to accede to the terms which are there proposed. In that event his Lordship will be prepared to consider the draft of any charter of incorporation which the Company may be desirous to receive; and which in the first instance should be prepared by themselves. On receiving an intimation of the Company's assent to this proposal, Lord John Russell will answer that part of your letter of the 22nd October, which requests information respecting the general principles by which the Crown proposes to be guided in its measures for the government and colonization of New Zealand.