No. 8.
H. Merivale, Esq., to W. Mantell, Esq.

Sir,—

I am directed by Mr. Secretary Labouchere to acknowledge your three letters, just received, of the 31st ultimo, and first of this month, on the subject of the transaction with the Ngaitahu Natives, and of your own position with reference to them, and to answer them together, as the subjects are necessarily connected.

2.	It is quite impossible for Mr. Labouchere to discuss the questions raised as to these Natives, or even to form any distinct view of the position of Her Majesty's Government in relation to them, unless prior reference ho had to the Local Government; you appear to misconceive the functions of this Department in endeavouring to obtain its judgment without that reference, or by the aid of other information. Mr. Labouchere must altogether decline calling in the assistance of Mr. Justice Martin, whose official duties (distinguished as his character may be, and highly useful as he has rendered himself through the interest which he has taken in the affairs of the Maori race) have nothing whatever to do with the questions which you have yourself thought proper to raise between your own Department and the Local Government. It would be not merely irregular in form, but highly prejudicial to the public service in substance, were acts of the Local Government, Central or Provincial, questioned, much more over-ruled by the Secretary of State, unless on prior and full communication with that Government.
3.	The whole of this correspondence will, therefore, be transmitted to the Governor of New Zealand, for such explanation or such other steps as he may think proper.
4.	With respect to your own conduct in these transactions, it is with regret that Mr. Laboucher sees that you avow yourself at last compelled "to inform him that you acted without instructions in the matter of your purchase from the Ngaitahu." Surely so important a feature in the case as this excess of authority by yourself ought to have been at once admitted and fully brought before him, when you endeavoured to procure his interference in the case. As it is, he has every reason to suppose that you acted in this matter only under a strong sense of what was required by the occasion, but it is the Local Government who must in the first instance judge of the propriety of your conduct.
5.	With respect to your own position, it must necessarily depend on the result of the communications now made to the Governor.

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Mr. Labouchero is not able exactly to understand on what grounds you have applied to him for the Royal confirmation in an office which was bestowed on you by the Local Government, and which has not, so far as he is aware, been reported by that Government as requiring such confirmation.

But it would obviously be improper for him now to advise such confirmation, in the position in which you have placed yourself toward those who appointed you. If you return to New Zealand at the expiration of your present leave, and as holding your present office, you will of course have to meet any inquiry, or other proceedings which may be instituted respecting the various transactions on which you have corresponded with the Secretary of State.

6.

But in the meantime, and during the continuance of your leave, you are at liberty, if you think proper, to draw for the half salary of your office, as, since you have returned the public documents which under a mistaken view of your rights, you had thought proper to keep back, the Secretary of State has no further reason for interfering with your enjoyment of the usual rights of an officer on leave.