E—No 2

relation to the vendor and the purchaser. As regards the former, Sir George Grey is aware how much jealousy exists at the present moment in the minds of the Natives on the subject. There seems to be only one method of removing that feeling, without at the same time absolutely abstaining from all further purchase : and that is to leave the matter substantially in the hands of the Runangas. A title sifted through the investigation of these bodies (whose knowledge on the subject will in all except a comparatively small number of disputed cases be found complete), and made the subject of publicity, may be considered as pretty w-ell ascertained. The process of putting a title on record, aud ensuring such publicity, may (Ministers believe) be easily and well effected by the plan formerly proposed by Mr. Fenton, and reduced by him into the form of a Bill which it was intended to introduce into the Assembly, aud which will be found in the House of Representatives' papers, 1860, E. No. 6w. Iu principle, it is analogous to the copyhold system in England : and in case of the Native title in New Zealand is peculiarly applicable, in consequence of the publicity attending every transfer conducted under it. It may be aelded that it has been already in partial operation, though without enactment of law, in the Kaipara district; where Mr. Fenton introduced it when Resident Magistrate there. When a title has beeti so ascertained in any particular case, and the Government satisfied of the fact, it is submitted that the Natives should then be left to hold, sell, lease, or otherwise dispose of their lands in such manner as they might themselves choose. Of course it is contemplated that in this, as in all other matters, the Commissioner, acting under tho authority and knowing the ideas of the Government, will suggest, and endeavour to induce the Natives to adopt, such regulations as may lead to the sale and occupation of those lands in the mauner most beneficial to both races. As regards the case of disputed titles among the Natives themselves. Ministers conceive that, when once confidence in our rule shall have been established, no great difficulty will be found in inducing the Natives to refer these to some tribunal, to be hereafter constituted, of a certain number of the great Chiefs of the country, whose decisions, on receiving the ultimate sanction of the Government, may become final. As to the terms ou which Europeans w rill be allowed to purchase land from the Natives. Ministers think that the restrictions proposed by His Excellency are too rigid, and would to a great extent act as an actual prohibition on European settlement in Native districts, which they are aware Sir George Grey is very desirous to promote, and iu the expediency of which they most entirely concur. Ministers are quite alive to the importance of preventing a scramble for Maori lauds among speculators, who might only buy to re-sell, and from whose ownership iu the meantime no advantage—but, on the other hand, positive injury—might ensue. But the very stringent requirements of personal residence under such severe penalties, is not in accordance with the spirit of the European population of this Colony, and would deter the very class which it is most desirable to encourage. Actual bona fide occupation for a term of years would probably effect all that His Excellency has in view, and would not be open to the same objection \t\. 3. As regards the salaries for clergymen and schoolmasters, Ministers think that Government aid should be limited to the latter. The ecclesiastical question may involve difficulties better avoided. Every exertion should be made to promote schools, and it is believed that towards this object the Natives may be induced generally to contribute. There are instances now of their carrying ou very efficient schools of their own, and of their maintaining wholly or in part their ministers of religion. The extension of the normal schools, and particularly those of an agricultural and industrial character, should be also promoted as far as possible, and as the Colony progresses these might prove of the greatest advantage to both races. 4. As regards His Excellency's proposal to submit all sentences of the Assessors involving punishments above a certain amount to the revision of the Supreme Court, Ministers suggest that such a course, at present at all events, is not necessary. Tho District Commissioner will be a person of personal character sufficiently high to create confidence in the decisions of the Courts which he superintends, and ultimately the Governor in Council has in all cases the power of pardon [ni~\. 5. The proposal to establish regular circuits of the Supreme Court, Ministers submit to be premature; they think that for the present the Supreme Court should be resorted to in the case of homicide aloue, in which case Ministers concur in the very great importance of the trial taking place iu the district where the offence may have been committed —a proposition which will, no doubt, be fully appreciated by the Native race. The Supreme Court could in such cases be put in motion by Special Commissions. Ultimately, when more complicated relations arise between the Natives and Europeans living together, regular circuits will, no doubt, be desirable [n~\. In conclusion, Ministers think that the plan proposed by His Excellency has in it all the elements which are essential to supply the present deficiencies in the machinery of the Government of this Colony, so evident in its bearings on the Maori race. Ministers have made these observations on His Excellency's plan, not as the result of any difference of opinion ou its main features, but with the desire of contributing from their more recent local knowledge and experience, suggestions which may enable His Excellency surely and successfully to carry his ideas into practical operation. They believe that even an instalment of what is proposed by His Excellency, if successfully established, will suffice to reconcile tho Maoris to live under one common government with the colonists; while, if the whole plan can be catricd into operation, it will so evoke the energies of both races, and afford so vast a scope for enterprise in this island, as will make its material and social growth as remarkable as that of any portion of Her Majesty's dominions. William Fox.

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GOVERNOR AND MINISTERS.