No. 1.
Mr. Commissioner Johnson to the Chief Commissioner.

This valley is situated on the tract of debateable ground which usually lies between the possessions of every two great tribes in New Zealand, and has been a bone' of contention for generations past, between the two great divisions in the North,—the Ngapuhi and the Rarawa.

Besides the Ngapuhi and the Barawa, another party have now appeared, headed by a young man named Tipene, of the Ngatikahu Tribe, the original possessors of the land in question, who were formerly on the side of the Rarawa, taking part with them against Ngapuhi in 1842. They have now quarrelled with their late Chief Noble, and are urging their claims under the auspices of Tamati waka.

It appears that all parties partook more or less of the payments made by Dr. Ford and the other Europeans, the original purchasers, through whom the lands reverted to the Crown; and had the ground been actually taken possession of at that time, it is very probable that no difficulties would have been raised by the natives.

During the twelve years which have elapsed since that event, affairs have changed. A war between the Rarawa and Ngapuhi, who suffered considerable loss of life on both sides, has taken place, about the right of selling lands in the District of Mangonui, and it happened that the Valley of Oruru was the scene of the hostile encounter.

Whatever the rights of these belligerent tribes may have been respectively, prior to this war, an equal loss of life raised the claims of both parties upon & new basis, and not being able to agree together, the place was by mutual consent abandoned.

Noble appears to have been the first to return to the contested ground, with the sanction, he affirms, of the Government, in consideration of the services he rendered in the war against Heke.

These circumstances have led to a complication of native difficulties; and the land being required for the location of setters, it became evident that the first step was to extinguish the claims of Noble, the party in possession, and this was done recently for the sum of one hundred pounds, through the hands of Mr. White, the Resident Magistrate, and Noble now without equivocation acknowledges the land to be Crown property.

Next in importance, with a view to quiet occupation, is the settlement of the demands of Pororua and the Ma Uri Uri of Hokianga, (Ngapuhi,) and I think a sum of one hundred and fifty pounds might be advantageously spent in attaining that object, as well as a sum of one hundred pounds to the young chief Tipene who has now headed a third party of claimants.

Pohipi, a chief of the Rarawa, also advances a claim of fifty pounds, maintaining that he has as good a right as the other parties, having lost several men in the defence of his claims in the war with Ngapuhi in 1842; and I would also recommend the liquidation of this claim, after which the question will be settled on a satisfactory footing, and considerable blocks of land can be obtained from the Rarawa without any of these complicated difficulties with which the present claim is surrounded.

The aggregate amount now required will be three hundred pounds, which, together with the former payments, will raise the cost of the Valley of Oruru to about the same amount as would have been paid for a new purchase of the same size in the present time; and I beg to request you to move His Excellency the Officer Administering the Government, to approve of the foregoing arrangements being carried out, and the amount transmitted for me, to the care of the Sub-Treasurer, Bay of Islands.

I beg further to state, that some of the foregoing parties of claimants are very insolent in their demands, notwithstanding the liberal manner in which I have dealt with their claims, and propose referring their case to a higher authority in Auckland; but as I have, acted in co-operation with Mr. White, the Resident Magistrate, who is also of opinion that the measures I have proposed are the best that can be devised, I hope that a firm refusal will meet them in Auckland, after which I have no 'doubt but that they will accede to the terms offered them.