No. 11.
H. T. Clarke, Esq., to the Hon. Colonial Secretary.

Sir,—

I have the honour to inform you that when I was requested to visit this Province for the principal object of purchasing Stewart's Island for the Crown, I was led to suppose that on application to the Provincial Government the purchase money would be forthcoming whenever required.

On the eve of the departure of the Superintendent for Auckland, I waited upon His Honor, and asked him whether in the event of my coming to an arrangement with the Natives, during his absence, I could have the money. His Honor could not give me a satisfactory answer, but requested me to communicate from time to time with his Deputy. I have done so, and am informed that the matter is impossible.

This may place me in difficulty with the Natives. The Natives from the Otago Province are already assembling, to detain them would only put the Government to great and unnecessary expense; to allow them to separate before going into the question of "Stewart's Island," would frustrate the principal object of my mission.

Under these circumstances I purpose, as soon as the Natives are assembled, to go into and settle the question of title. To draw up (should we come to terms), a memorandum of agreement, allocating the purchase money under the three heads named in one of the enclosures to my letter of 6th May, (leaving proposition No. 2, reserved for your decision, an open question), and also settle the distribution page 60of the sum that is to be paid at the time of the execution of the deed, setting forth the exact sum, that is to be received by each Chief or Hapu.

This done, should I not be instructed otherwise, I shall proceed again to Dunedin, and from thence to Auckland.