Auckland, July 1, 1844. Sir, I have the honor to acquaint you that in compliance with your instructions of the 21 June I proceeded with Dr. Campbell the Gent appointed by Mr. Taylor to negotiate with the Natives to conclude the payment for the Island of Pakehe at Princes Inlet. When the Natives connected with the said Island were collected I informed them that His Excellency was about sanctioning the sale of that Island to Mr. Taylor who would on the completion of a further payment commence operations thereon, at the same time giving them to understand that as they had previously complained to you of not having received an equivalent payment for the Island that a further payment would be now made. The Natives replied that the original payment recd, by them was one Double barrelld gun for which they would willingly pay the Government two ship loads of Manganese. The reasons assigned by them for not coming to a final conclusion in reference to the Island were that some of their lands that had been sold to Europeans had not been as yet fully paid for. I recommended these cases to be laid before you for your consideration in the meantime they wished a little more time to think of the present proposals. Enclosed I send for your information the names of the Native Claimants of the Island. I have herewith the honor of forwarding my a/c of travelling expences. Yours, (D. McLean)