No. 28.
The Native Secretary to Mr. H. Clarke.

Sir,—

I am directed to write to you relative to a communication made by Mr. D. Bell to the Hon. the Colonial Secretary.

Mr. D. Bell states that while he was at Otago the Superintendent and Mr. Cutten spoke to him about the Native Reserve at Dunedin fronting the Harbour and Princes Street, which Sir George Grey made on Mr. Mantell's recommendation many years ago, and which, as he says, the Provincial Government have objected to as being made without authority.

Mr. Bell goes on to say that when the gold fields were discovered this land rose enormously in value, and that Mr. Cutten, having let the frontages from year to year, has now in hand about £6,000 derived from this source.

Mr. Fox directs you to go into this matter with the Provincial Government and Mr. Cutten, and to report thereon, at the same time suggesting how the money had better be applied.

Mr. Bell also states that the Taieri Natives have written to him offering to sell to the Government a portion of their reserve at the ferry, which he remarks is the best site in that locality for a township.

Mr. Fox also directs you to make full inquiries on this matter, and to report to him thereon.

I have, &c.,

Edward Shortland.
Native Secretary.
H. Clarke, Esq., &c