Memorandum by the Assistant Treasurer.

No requisition was made upon the Comptroller in respect of the £6,031 18s. 9d. paid for the Dunedin Disputed Reserves. The money had been placed in deposit with the Bank of New Zealand by the Colonial Treasurer, and was withdrawn from such deposit when required for payment. This was before the coming into operation of "The Public Revenues Act, 1867."

The amount appears in the published Accounts under the heading "Trust Fund," because, although the Public Revenues Act was not in existence at the time of the payment, the operation of the Act was made retrospective, and therefore the accounts of a large portion of the year have had to be reconstructed in accordance with its provisions.

Annexed are copies of the voucher and guarantee under which the money was paid.

Enclosure 1 in No. 92.

The New Zealand Government Dr. to Superintendent of Otago.

Balance to credit on account of Dunedin Disputed Reserves, 24th September, 1867, £6,031 18s. 9d.

I certify that, to the best of my knowledge and belief, the foregoing account is true and correct in every particular.

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.