No. 17.
Mr. Mantell to the Private Secretary.

Sir,—

I have the honor to request that you will report to His Excellency the Lieutenant-Governor my return to this place, accompanied by fourteen Southern Natives, including several men of considerable rank and influence who were not present at the last payment.

Since my last communication, I have set apart a small reserve at Kakaunui, a larger one at Moeraki, and after much difficulty another at Waikouaiti. In this last case I was compelled to leave, subject to the Lieutenant-Governor's decision, the exclusion from the reserve of about 50 acres occupied and cultivated by Europeans; on this case I shall have the honor to report on my return to Wellington.

After the settlement of the reserve, Mr. John Jones made his selection of 560 acres in these blocks. I approved those selections, and they were marked by Mr. Wells on the map of the district.

Having made reserves at Purakaunui for the Natives resident there and at Purehurehu, I reached Otakou, Port Chalmers, on the 9th of December. While here I was engaged in meeting the Natives, and selecting those who should accompany me to Akaroa. I had also occasion to bring under the notice of the acting Resident Magistrate the reckless manner in which the Europeans supplied the Natives with spirits, a practice which caused me much inconvenience.

On the 21st instant, having arranged with the agents of the schooner "Dolphin" to leave myself and party at Akaroa, I left Otakou, and reached this place this afternoon. On my arrival I received from the Resident Magistrate the letter of His Excellency the Lieutenant-Governor, which I have had the honor to acknowledge, and was informed by that gentleman that the money for distribution to the Natives had not arrived. As there is now a great concourse of Natives in this place, I shall direct them to remain quietly at the various kaikas until the appearance of a vessel from the northward, when they will reassemble at Akaroa.