Copy of a Letter from Mr. H. T. Clarke, to the Hon. the Colonial Secretary.

Sir,—

I have the honor to hand in for your information a connected report of my proceedings, with reference to the purchase of Stewart's Island for the Crown from the Natives of the Kaitahu and Katimamoe Tribes.

At a preliminary meeting held at Aparima on the 17th March last, it was arranged that, as soon as the Natives returned from their mutton-bird expedition, all those interested in Stewart's Island should meet to discuss the terms on which they would sell all their interests in the Island to Her Majesty's Government.

I wrote to the Natives in the Otago Province acquainting them with the above arrangement, and I requested all those who had claims to the Island to hold themselves in readiness to meet Topi and the others at a time and place to be named in a future communication.

Before entering into negotiations with the Natives, I thought it necessary to come to some clear understanding with the Provincial Government, and decide upon some settled course of action.

The propositions submitted by me for the consideration of His Honor the Superintendent were as follows:—

That the sum of £6000 should be paid for the whole Island, the payment to be made in the following manner:—

First, £2000 to be paid to the Natives at the time of the execution of the deed.

Second. £2000 to be retained by the Government, to bear interest at the rate of 8 per cent. per annum. The interest to be divided annually amongst certain Chiefs to be named. Third. £2000 to be expended, under the direction of His Excellency the Governor, in the purchase of land in Southland Province, for educational, and other Native purposes.

His Honor the Superintendent agreed in the main with the above, but recommended a modification in the mode of dealing with the second apportionment. His Honor suggested that the sum be "invested in Provincial Government securities, debentures bearing 6 per cent. interest;" but on mature deliberation, I consider that the amount accruing from the £2000 at 8 per cent. quite small enough for the purpose for which it was intended to be applied. I, therefore, in submitting these propositions for your approval, recommended that the second apportionment should also be expended in the purchase of land, and that the General Government should guarantee 8 per cent. interest, making it a first charge upon the estate when made available.

The Hon. Mr. Whitaker, in your absence, was pleased to approve of the course recommended by me, leaving the question of investment for future determination.

For some reason or other, the Natives from the Otago Province began to assemble without waiting for my second letter, and had quartered themselves upon their Aparima friends long before the Natives returned from their bird expedition. Topi Patuki on finding so large a body of claimants assembled, expressed great annoyance, the claims of many of whom he entirely ignored. He even refused to meet the Waikouaiti Natives at all.

However, after many delays, a meeting was at last effected at Aparima. A long discussion took place between. Topi and the Waikouaiti Natives, which was carried on with some warmth on both sides, but the disputed points were at last yielded by the latter, and Topi was unanimously acknowledged as their head, and the principal man with whom I was to deal.

On the 23rd June, I met the Natives. There were 120 men present, representing the Natives from all the Kaikas in the Otago and Southland Provinces (including Ruapuke). Although the question of title had been settled amongst themselves before meeting me, I wished to satisfy myself that no undue pressure had been brought to bear upon any of the claimants. I therefore requested that the different grounds of claim might be stated before me. Horomona Pukuheti argued on the side of the Katimamoe; Paitu and Wiremu Te Rehu, two old men, on the side of the Kaitahu. I need not trouble you with a detailed account of this dry and tedious discussion. I will only state that the Kaitahu established indisputably their right over Katimamoe, so that at the close of the discussion Horomona Pukuheti and his few friends were quite satisfied to hold a secondary position, and claim through their Kaitahu ancestry.

On the 24th, they met again to hear the terms upon which I was prepared to purchase the Island. When I announced that I would give them £6,000 for the Island, they affected to be surprised at the smallnes of the payment. They asked, through Topi, first for £50,000, then for £22,000, and last of all for £12,000, but I told them that I could and would not depart from my first offer, because I believed that it was a liberal and just payment for an Island which was of little or no value to themselves. That in the apportionment of that payment their future interests would be cared for. After some further discussion, they consented to the terms offered by me,—provided that I would pay the £2,000 at once. They also wished that the £2,000 reserved for educational, and other purposes should also be paid over to them. Their reason for making this request was, that all promises of a like nature made by former Commissioners had never been fulfilled. I told them that I would provide page 61against any such contingency by entering the stipulation in the text of the deed. This in some measure satisfied them, and they agreed to leave the matter in the hands of the Government, requesting an answer as soon as possible. I held out no hope that their application would meet with success, but, on the contrary, told them that it would be strongly opposed by me. I promised them, however, that they should have an answer.

The only difficulty then in my way was obtaining the £2,000 to be paid at the execution of the deed.

From what fell from Topi and others at the meeting, I was impressed with the necessity of at once closing the transaction. To allow the Natives to return to their homes without satisfying their claims would cause dissatisfaction, and render the hope of a future adjustment more difficult. To suffer Topi to return to Ruapuke, would be to expose him to the influence of certain Europeans who had already made some overtures illegally to purchase portions of the Island. I therefore waited upon His Honor, and laid before him the state of the case, and the absolute necessity of making the purchase at once. His Honor was pleased to entertain my view of the case, and made arrangements to pay me over the money when required. All difficulties being removed, the Deed of Session was executed at the Bluff on the 29th June.

I would take this opportunity of giving an epitome of the terms of sale, viz., £6,000, the price to be given for the Island, and apportioned as follows:—

First. (£2,000), paid over to the Natives at the execution of the deed.

Second. (£2,000), held by the Government at 8 per cent., the interest to be paid annually, and divided amongst the following Natives:—Tioni Topi Patuki, Paitu, Tioni Kihau, Frederick Kihau, and Ellen Kihau, and their heirs. Failing all these, the Governor shall direct how the principal shall be applied.

Third. (£2,000), to be expended in the purchase of land in the Southland Province for educational, and other Native purposes.

It will be necessary for the Government to make some arrangement, as soon as possible, regarding Nos. 2 and 3. The interest payable on No. 2 ought to date from the execution of the deed.

A memorandum respecting the reserves made by me, their position, extent, and the Natives for whom made, I herewith enclose. I have left a copy of this memorandum in the Superintendent's Office, Southland, for the guidance of surveyors, &c. I also enclose a list of the "Titi" Islands, adjacent to Stewart's Island, reserved for the sole use and benefit of the Natives, in the lawful use of which the Government guarantee them protection.