No. 10.
Mr. Fox to the Hon. the Colonial Secretary.

Sir,—

I have the honor to acknowledge the receipt of your letter of the 30th August, covering one from Mr. Mantell to yourself, reporting the progress of his negotiations for the extinction of Native claims on Banks Peninsula. I beg to express my satisfaction at Mr. Mantell's success in arranging with the Port Cooper Natives, and, considering the necessity of immediately obtaining that harbour, I think the amount not unreasonable.

As regards the residue of the Peninsula, however, I should hope that, considering that the land was more or less sold to the French Company, and that a larger reserve was made at Kaiapoi than requisite for the Natives there, on the express ground of the promise of the Port Levy Natives to quit the latter place, I hope that Mr. Mantell may be able to complete the transaction without any considerable outlay.

I am prepared to make the advance requested by Mr. Mantell, but feel the same difficulty as on a previous occasion in reference to the custody of the money. As future payments will be made at or near Akaroa, I beg to suggest that the money should be intrusted to the Sub-Treasurer there, Mr. Watson, I sending it as far as Port Cooper, whence it could be transmitted overland. I shall have an opportunity of sending by a respectable party in a week or ten days.