Enclosure 2 in No. 1.
James Kelham, Esq., to T. C. Harrington, Esq.

Sir,—

I have the honor to enclose a letter, received by me from Mr. Hamilton, written at the Port Cooper Plains, whither he had proceeded by boat along the coast after the failure of an expedition in which he accompanied the Lieutenant-Governor.

The assertions of the Natives that some of the country between the Kaikoura Mountains and Port Cooper Plains has not been purchased, may have some foundation. I heard the same story when I was at Kaikoura Peninsula in the "Acheron"; but the district is included in the Nelson grant, which was issued under the purchase made by Sir George Grey, in person, from Rauperaha and Ngatitoas. The few Natives resident in it assert that Rauperaha had no right to sell, having never fully conquered the inhabitants. Into the merits of such an assertion I am not prepared to enter; but the question is of no immediate importance, and may, I have no doubt, be settled at any time for a very small sum of money, if not without.

Mr. Hamilton placed in my hands, at Port Cooper, an interesting report of his boat voyage down the coast, above referred, but I left it with Captain Stokes, in the "Acheron," and have not yet received it again. On his return here, I will forward it.