their purposes was only to be obtained by purchase from the Aboriginal occupiers of the soil. The treaty of Waitangi too, clearly laid down that principle of the English Government as the foundation of their relations with the Natives. The first Governor in carrying that principle into practice so far assisted the Company as to pay a sum of money to the conquerors of this district for the extinguishment of their claim to it on the right so obtained. The Home Government jealously watching over this principle, of right to the soil, by the natives sent out a Commission to enquire into the manner into which the Company as well as others had pretendedly or otherwise acquired considerable tracts of land in New Zealand. Mr. Spain entrusted with that Commission amongst other awards made one in reference to this place wherein he declared that the purchase was a valid one, and appeared especially to rely on the payment made to the Waikatos. Shortly afterwards our second Governor carried away by his feelings in favour of those who had by war been dispossessed of their lands reversed Mr. Spain's decision, and so far as he was able put the former Native occupants in possession. Our late Governor knowing how dangerous it would be to adopt a line of policy towards the Natives opposed to that of his predecessor exerted himself to repurchase that which Mr. Spain had decided, had been previously rightly obtained and would not in any instance use other means to acquire possession of land. The Waikatos have however never relinquished their Sovreignty (if I may use such an expression) to this District, for when through the interference of the Wesleyan Missionaries the Puketapus had their freedom given them, and they were allowed to return again to their former homes it was on condition, that the latter should do so for the purpose of cultivating the land and living on peaceable and friendly terms with the Europeans. I believe up to this day the Waikatos look on the occupation of this land more as a permissive one than any other. So long as the natives merely refused to sell their lands, so long were we bound religiously to respect the promise made that they should not be interfered with, and we had only patiently to wait until they became convinced that it would be for their interests to sell them, but when a sectional part, banded with other tribes, to prevent those who were disposed to sell, from doingso; and when this combination assumed the form of a league the ramifications of which are widely extending; a league established