Stapelton, Coromandel. Oct. 7 1857. My dear Sir, I forwarded you a letter a few days ago I alsp send you a report on the several matters referred to me as far as I can at present the other matters I will report on as soon as I can obtain the needful information. You will see that I have recommended that some purchases should be made as soon as possible because the gold diggers are now finding gold in large quantities last week three men who were not able to work half their time on account of bad weather got gold to the value of £26--19--0 from that I think that it is clear that something must be done to put Government in possession of land that has gold in it. Moore's land has the most gold of any that has been worked as yet it is of no service to him the only good of it is as ligging ground he would I believe part with it on moderate terms and as a good portion of it will revert to government I have recommended that they purchase his grant and then extend their purchase as soon as it can be done on each side aeserving the whole for the use of gold diggers by doing so much disputing would be prevented and peace ensured to all. The compensation to Moores could be either in land that would be in a locality that would be of more use to him or it could be in a sum of money which would be nothing compared to the difficulty that now exists in the in the Government being destitute of land for the diggers to work on it would give great satisfaction to the public of the Province I do think that when all the present claims are arranged that the natives will be ready to offer land I have had a good deal of talk about their various wants I have pointed out to them how they could be supplied by selling land that they did not want which I think that they will do. You will see that I have recommended Motutipere to be reserved for the use of the Natives as I think it would be of great service to them but of no importance to the Government I trust that they may have a crown grant made out in their favour for it if practicable as that would secure it to them. In haste believe me to remain Yours very truly James Preece. D. McLean, Esq., Auckland.