No. 16.
Mr. Commissioner Hay to the Chief Commissioner.

I should wish to call the attention of the Government to the following facts, from which have arisen the delay and difficulty in settling the Piako question.

They have refused the sum offered yesterday (£50) because they did not consider it sufficients; and also because they maintain that some payment ought to be made by the Government on account of Webster's purchase With regard to this purchase, they have been most consistent in asserting that though their names were signed together in token of assent, and their evidence before the Commissioner's Court went to prove that the purchase was a bonâ fide one, still they were induced to act thus from the promises and representations of Webster, and that at that time they hardly knew the importance of the steps they were taking. I may observe that the sum promised by Webster was five times the amount paid by him; it is needless to state that the promise was not kept.

In parting with the Piako Block it must be borne in mind that in doing so the Ngatipaoa Natives almost extinguished their claim in that district, and consequently lose their influence for which money even for larger amount than that offered to them would be no remuneration, as on no point do they feel so strongly as on this.

The principal mover amongst those who will not come to terms is Te Wi, son of Te Hoehoe, and by right of descent the feudal chieftain of the residents on the land; he feels that if he sells the land, his vassals will be independent of him, his influence diminished, and himself lowered in rank. I think the Government would do well to look at this purchase as a matter of policy not at so much per acre. I would add also that the Natives feel painfully that having in 1854 given £550 in advance on their land, we appear to be driving them into a corner to force our own price upon them for land which they value more highly on account of its being their entire claim in that district.

If the Governor would authorize me giving as high as £1000 I would make the best terms I could with them.