Enclosure 3 in No. 17.

Sir,—

In reference to the conversation which I had with your Honor on the 7th instant upon the subject of the survey of Native reserves on Stewart's Island, and on the main land in this Province, I have now the honour to acquaint you that I have received the sanction of Ministers to the arrangement proposed, viz:—

That in consequence of the inability of the Provincial Government at present to undertake such surveys, and there being an admitted pressing necessity for their execution, the money for the purpose shall be supplied by the Colonial Government, and paid on the certificate of the Provincial Chief Surveyor, under whose direction the work is to be carried out; the question as to the fund upon which the expenditure shall be ultimately charged being left open for subsequent adjustment.

Major Heaphy, V.C., who is now in Invercargill, will arrange as to the details of the work with the Chief Surveyor of the Province of Southland.