No. 3.
Mr. H. T. Kemp to Mr. Gisborne.

Sir,—

Agreeable to the Lieutenant-Governor's instructions conveyed to me in your letter of the 25th April, I embarked on board H.M.S. "Fly," for the Middle Island, to endeavour to acquire by purchase from the Natives the tract of country lying between Nelson and Otago Districts, and thereby to form one continuous and complete block of land.

I have now the honor to report for His Excellency's information my return from that expedition, and it affords me much pleasure to be able to state that the deed of conveyance comprising the district referred to, extending over to the West Coast, was duly executed by the Native chiefs on the twelfth instant, in the presence and with the consent of the people; and I have every reason to believe that the whole of the proceedings gave them general satisfaction. The deed, together with its translation, and a map of the portion of land surrendered to the Company, I beg herewith to enclose.

In carryiug out His Excellency's wishes, I have been greatly indebted to Captain Oliver for his ready co-operation and advice, and to Mr. Kettle, the Company's principal surveyor, for his assistance throughout the negotiations which took place, and I trust I may be allowed through you to tender those gentlemen my best acknowledgments for the same.

I propose in a separate letter to address you with reference to those portions of land already guaranteed to the Natives, as well as with regard to those that are hereafter to be reserved for them under the immediate sanction of the Government, and with reference also to the payment of the fature instalments, having thought it desirable, in my dealings with the Native sellers, to meet their wishes, without, I think, deviating from the general tenor of my instructions.

Under all the circumstances. I shall venture to hope that the arrangements I have made will meet with His Excellency's approbation, and at the same time prove satisfactory to the Principal Agent of the New Zealand Company, on whose behalf the land has been acquired.