Waikato. 11th. June 1878. My dear Featherstone, I am delighted to hear of your success in Immigration, and hope when the streamr is fairly directed to our shores that it will continue. I have been here during the last fortnight, arranging preliminaries for a settlement of differences with the King Party; and have made considerable progress in this direction. A Meeting with the King has not yet taken place, partly owing to jealousy between the Waikato and Maniapoto tribes. Both parties however are most friendly, and send messages to me from day to day, each in their turn abusing the other for delaying a Meeting. From the advances now made I am satisfied the time is not distant for a perfect reconciliation. The idea about restoration of Waikato will be tempered down to something reasonable; and other matters can be adjusted. In the interests of the Colony, I consider it best to take time than to hasten a settlement that might not be satisfactory, or permanently binding on the natives. The Governor has had a satisfactory tour through the Interior; which leads him to think that an equally favourable demonstration would be accorded to him by the King Party. But in this he is greatly mistaken; and I should be glad if he would meddle less, and express his opinions with more reserve, in native, and other matters. It appears to me that he would like the Home Government to resume the management of Native Affairs, If such were possible, and that Sir George had the direction of them, we should soon be launched into endless complications. (Signed) D. McLean.