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The only real difficulty attached to the last class. I took pains to explain the grounds of the doctrine that wherever they had actually parted with their title it passed to the Crown; and that, therefore, they should give up the land sold, irrespective of the date of purchase. Further, that they had nothing to do with any regulations as between the Crown and its subjects of European race, regarding the ultimate disposal of the land. The principal seller had been a chief named Kahutia; and thereupon ho confessed to having sold the land wrongfully, confirmed the allegation of the Natives that they had an equal right to it, which has never been satisfied, and admitted that they talked of sending him off to another part of the East Coast as a kind of punishment. Of course, this last was an unmeaning threat; but the end of it was that they united in the declaration that they would repossess themselves of the land. To this, I objected that they had permitted the settlers to live there for years, and to incur a good deal of expense in building and cultivating, and that it would be unjust to take the land and not pay for the improvements. They admitted the justice of paying for these, and requested me to value them; which, however, I had no power to do. Most of the settlers, seeing the course things were taking, got alarmed and decided not to bring forward their claims at all, lest, when the evidence came before mo, their own witnesses should, as Kahutia had done, repudiate the sales. Even in a case where the evidence seemed to establish the claim, the claimant considered it would be hazardous to make a survey; and though (in accordance with the rule I have pursued from the first) I refused to allow young men to annul transactions of the older chiefs, I think it would be difficult in any case to make, such a survey as I require before issuing a grant. The settlers then expressed a desire to abandon their claims to the Government, in the hope of some day getting a title ; and I took the opportunity of pointing out, in claims arising since 1840, the absurdity of their calling upon the Governor to protect them and expecting the aid of the law to maintain their violation of it. On the whole, I could not but arrive at an unfavourable opinion of the Natives. I never heard anywhere such language used about the Queen's authority, Law, Government, Magistrates, and the like. I think much of this state of things arises from the decline of Chieftainship in the district, instanced by the proverb among them that "' at Turanga all men are equal"; and it would have been far better if the Ordinance of 1816 had been put in force, and straggling settlers prevented from occupying the land contrary to law. This is. in my opinion, the chief cause of the bad state of feeling that has grown up at Poverty Bay. Whatever may be the true reason, it lias resulted in preventing the settlement of the claims, and at present I see no prospect of making such a settlement. F. Dillon Bell, Auckland, 24th Feb., 1860. Land Claims Commissioner.

Printf- in Sess. r»P-, I—o

No. 2. DESPATCH FEOM GOVERNOR GORE BROWNE TO HIS GRACE THE DUKE OF NEWCASTLE. Government House, Auckland, New Zealand, 27th November, 1860. My Lord Duke, — 1 I have the honor to forward the Report of a Select Committee of the House of Representatives, appointed to enquire as to the circumstances under which an attempt was made in the year 1857 to introduce institutions of Civil Government amongst the Natives of the Wuikato District, the practical effects of the same, and the causes which led to its discontinuance. 2. Mr. Fentou's journal having been adopted as a basis of the enquiry, I should inform your Grace that in the year 1856 I had appointed Mr. Feuton to be my Native Secretary, au appointment which was then separate from the Land Purchase Department. As a matter of economy, Ministers proposed that the offices of Land Purchase Commissioner (held by Mr. McLean) and that of Native Secretary, should be united, and I consented on condition that Mr. Fenton should be otherwise, provided for. He was then appointed Magistrate at Raglan, and afterwards transferred to the Waikato. 3. At my desire. Mr. Fenton prepared a Report for which, for his zeal and ability, and for the value of his information, ho received my own thanks and those of the Government expressed in strong terms. 4. I agree with the Committee in thinking that "general soundness of the views expounded in this very able paper has not been impeached." lam not, however, prepared to admit that Mr. Fenton shewed equal discretion in carrying those views into effect. 5. The Chief of Waikato (Potatau or Te Wherowhero) had been employed by Sir George Grey as his organ of communication with the Waikato, and for this purpose he was induced to live at Maugare, six miles from Auckland, on a reserve provided for him. His influence was known to be paramount on the Waikato, as he was a groat warrior and a p rofouud politician; and Sir George Grey judged very wisely that as long as Potatau was faithful to him the tribes of the Waikato would be friendly and remain quiet. 6. Just before Mr. Fenton's appointment the subject of a Maori King had been revived, and Potatau was the person indicated as likely to be raised to that dignity. In 1857 I visited the Waikato and met Potatau at Paetai, when he promised to put a stop to the subject. Mr. Fenton

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DESPATCHES FROM GOVERNOR GORE BROWNE