Enclosure 2 in No. 92.

Sir,—

Referring to your letter of the 24th July, 1867, I beg to state that if the accumulated rents of the Princes Street Reserve, now in the Colonial Treasury, be paid into the Provincial Treasury or to the "Provincial Account" of the Province of Otago at the Bank of New Zealand, and the Crown Grant under which I hold the reserve be at any time hereafter declared invalid, as to the whole of or any part of the land, in any Court of competent jurisdiction or by the Legislature, or the right of any portion of the Native race, or of any persons other than the Superintendent of Otago, be established or declared by the Legislature or by any Court of competent jurisdiction to the said accumulated rents, I, as Superintendent of Otago, and on behalf of the Province, undertake that a sum of money equal to the sum paid into the Provincial Treasury or to the "Provincial Account," as the case may be, or such part of it as may have accrued as rents of such part of the land as shall be declared or decided to be not bound by such grant, or to be legally held thereunder, shall be repaid by the Province into the Colonial Treasury whenever the Colonial Treasurer requires it.

I also undertake, on the part of the Province, to guarantee the Crown and Government of New Zealand against all claims which may be made against the Crown or such Government in consequence of the above-mentioned rents being paid over to the Province.