Copy of a letter from the Superintendent of Nelson, to the Hon. the Colonial Secretary.

Sir,—

On looking into the affairs of the Native Reserve Trust of this settlement, I regret to say that I find them in a very unsatisfactory state, nothing appears to have been done, or any one page 274authorized to act since Mr. McDonald gave up the charge in January, 1845. The result is that there are rents and moneys due, sums to pay, the Native hostelries fast crumbling to ruins, and land both in the town and country, from which a revenue might be derived, lying waste. In bringing the subject before the notice of the Governor-in-Chief, His Excellency instructed me to draw up a report, and apply to His Excellency the Lieutenant-Governor for authority to grant leases, receive rents, and otherwise act for the Trust.

In going over the documents, there appears due for rents, about £150, upon allotments for which agreements have been signed, but no leases executed. I do not consider that all this sum can, or in equity ought to be recovered, as property has very much deteriorated since the rents were fixed, and in all other cases they have been reduced, and great allowances made by the proprietors of land. The lease also should in my opinion be drawn out more in accordance with the present value of land than the terms formerly agreed upon. I would, therefore, suggest that the Board appointed to open and report upon tenders which is composed of the following persons, J. Poynter, Esq., J. Carkeek, Esq., and J. Tinline, Esq., who are well acquainted with the value of every description of property, should determine both what portion of the arrears the parties now in occupation should in justice pay, and likewise the rent to be embodied in the leases.

The Natives at Motueka have unfortunately had plans given them of the whole of the reserves in that district, and consequently consider them their property, although they comprise a much greater extent of land than they are entitled to, or even can make use of. This has already led to irregularity in the leasing, without any authority, of portions of the super-abundant land to Europeans. It would, therefore, in my opinion be advisable to assign to the Natives of that district out of these reserves, ample land for their present and future wants, with permission under certain restrictions to let, but not to sell, the remainder to be leased for their benefit. Some difficulty may arise in getting the Natives to surrender land they have heretofore been led to believe their own, but on consulting with the settlers in the neighbourhood most conversant with their sentiments, I do not apprehend much opposition, provided they, at the same time, perceive some practical good resulting, such as building a small hospital, putting the hostelries in proper repair (both of which I think could be effected, were the outstanding debts collected), or the experimental farm established as suggested by Dr. Greenwood in the accompanying letter which the Governor-in-Chief directed me to forward, and in connection with which His Excellency was of opinion that the strip alluded to, and distinguished by dotted lines on the plan, should at once be set apart for the purpose specified.

The annexed memorandum will show more clearly the exact state of the trust affairs.