No. 7.
Mr. Commissioner Hay to the Chief Commissioner.

I have the honor to state for your information that the Ngatatimatera have come to the determination that they will cede no portion of the land on account of money advanced to Ngatai.

Even supposing them to have consented to a survey being made of the block sketched by Ngatai, they would not have recognised the advance made as payment for any portion of the land but that which really belonged to him; and I am confident that he cannot claim more than a thousand acres, and that there would be several other claims as good as his which would have to be silenced by payment in addition to the advance already made. As for Taraia having taken part with the Government, the Ngatitamatera do not recognise any right on his part to authorize advances in money being made on a block which includes almost all their principal claims.

As my latest official information is a letter dated 2nd February, 1858, I, of course, am not acquainted with the nature of the arrangement made with Taraia, who affirms that Ngatai received the whole of the money advanced. A very slight share of responsibility rests on his own side. I have pointed out to him that, as I conceive, in all probability it was mainly through his consent that Ngatai obtained any advance from the Government; and he has desired that I should forward the enclosed letter (dictated by him to me) for His Excellency the Governor's information.

In case a report that Hopa Totohi has offered land on the eastern side of the Cape Colville Range be correct, I recommend that but a small advance be made.