The Hon. the Colonial Secretary to His Honor the Supreintendent, Otago.

Sir,—

I have to acknowledge the receipt of your Honor's letter of the 14th instant, requesting that no decision be arrived at by the Government, involving the issue of a Crown Grant or the Princes Street Reserve at Dunedin, until such time as the Provincial Government of Otago have had an opportunity of appealing to the House of Representatives for a full investigation into all the circumstances of the case.

In reply I have to inform your Honor that the Ministry, after peruaing the opinion of the Hon. the Attorney-General, a copy of which I enclose, sees no reason to doubt that the Princes Street Reserve is a Native Reserve under the operation of "The Native Reserves Act, 1856."

No action, however, will be taken in reference to the disposal of the proceeds of such reserve, pending the decision of the Government as to the mode of dealing with the proceeds of Native reserves.