No. 9.
The Superintendent of Southland, to H. T. Clarke. Esq.

Sir,—

I have the honour to acknowledge the receipt of your letter of 26th ultimo.

You propose that the sum of six thousand pound should be set apart for the purchase of Stewart's Island, of which sum one-third should be paid at the time of the execution of the deed of sale. One-third to be held by the Provincial Government as a loan, bearing 8 per cent. interest, the amount of which would be paid annually to certain Chiefs, to be named; and the remaining third to be expended in the purchase of land in the Province of Southland as reserves for education and other purposes.

The Provincial Government agrees in the main with these Proposition. On one point it has to suggest a modification, namely with regard to the second moiety, which, it is of opinion, should be invested in the Provincial Government securities, debentures bearing 6 per cent. interest; in other respects it believes the propositions are most judicious as regards the Maoris.

It has, however, further to suggest, with reference to the destination of the third moiety, that a definite provision should be made form that source for the half-castes on Stewart's Island. Seeing that the Maori, who will be entitled to receive those lands purchased by the third moiety are few, and decreasing in number from year to year, it appears to the Government that reserves so purchased will be ample to provide for the support of those, and at the same time leave a margin which will admit of the allocation of a considerable portion for the behoof of those half-castes. Whether such an arrangement as that suggested will be finally agreed on or not, the Provincial Government fully concur in the opinion you indicate, that it is necessary to make proper and sufficient provision for these half-castes, and the subject will receive the further and careful consideration of the Provincial Government.