No. 1.
I. N. Watt, Esq., to the Native Minister.

Sir,—

I have the honour to acknowledge the letter of the number and date quoted in the margin, (No. 102, 6th March, 1868), and will attend to the instructions therein conveyed to me, as soon as the weather moderates; the heavy weather during the past month having prevented any communication with Ruapuke.

In the meantime, I beg to inquire whether the £2000, part purchase money of Stewart's Island, reserved for educational purposes, or the interest upon it, is available for paying the Native share of the salary of the master at Ruapuke or Riverton.

The Natives are very anxious to be informed upon this subject, as they have learned that some of the settlers who reside in Otago and Canterbury have lately claimed an interest in it.

I do not see that by the Deed of Sale, they are precluded from claiming an interest therein, but I recollect it was my impression, I believe derived from Mr. Commissioner Clarke, at the time of the purchase, that the northern Natives were paid so highly for their claims, because they were to derive no benefit from the reserved £2000; and the Rev. Mr. Wohlers informs me that he is under a like page 70impression, viz., that the amount reserved was for the benefit of the Ngaitahu tribe resident in Foveaux's Strait.