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3. Wherever the seat of Magistracy of a Civil Commissioner is placed, where consequently the Runanga will sit, the Civil Commissioner, Clergyman, and Medical Officer of the district will reside ; where assizes will be held, where the gaol will be built, and a laud registry office will be established ; a small country Town will gradually spring up, where land w rill in time become of considerable value. At some places such as Tauranga, large seaport towns may ultimately spring up, from such causes as I have above detailed. I think, therefore, that at every seat of Magistracy of a Civil Commissioner, a town should be laid out, in wdiich sites for public buildings aud for the residence of the Civil Commissioner, for hospitals, parks, &c, should be reserved as public lands ; whilst the remainder of the allotments in such town should be disposed of subject to the payment of a perpetual aunual quitrent, which should be available in the first instance for the payment of the cost of he proposed plan, and ultimately for the public purposes of the district. By a careful reservation of the public lands in the vicinity of towrns, for the purposes such as I have indicated, a very large revenue will be raised ; and to foster this, aud to aid in the civilization of the Natives, and the development of the resources of the country, I think that every encouragement should be given to butchers, bakers, blacksmiths, carpenters, and tradesmen of every kind, to settle in these inland towns. I would even, if necessary, upon application from the different Runangas, bring out emigrants of this class from Great Britain, for the express purpose of being located in such of the inland towns as might be agreed upon with tho Runangas. I think also the principal chiefs of the district should be allowed, in such towns, to have one or more allotments subject to the payment of an annual quitrent. If such allotments were judiciously selected for them, they would soon take a great interest iu the town, and an income might be raised from this source for themselves aud their heirs. 4. I think it might be found expedient to require of all persons, who untler the new regulations purchase laud direct from the Natives, to pay an annual quitrent to the Government for such land, to be applied to the public uses of the district; and in all cases of the resale of such lands, I would require a transfer-duty of two per cent, on the purchase money as a fee to the Crown ; the proceeds of this tax to be applied in like manner to the public uses of the district. I would also require all persons who leased land from the Natives under the proposed regulations, to pay a fee for the registration of such lease, and also an annual licence fee to the Government iu proportion to the extent of laud leased, to be applied in like manner for the public uses of the district. 5. I think that the Ruuangas would soon, if empowered to do so, raise funds for public purposes by local taxation. The Natives are not realiy a poor people. They can only be said to be so whilst their lands are of no value. If, under the proposed regulations, law and order are introduced throughout the whole country, Europeans flock into the Native districts, and a considerable value is given to the lands of the Natives, they will soon be a people quite able to bear local taxation, aud willing to impose it, to give a still increased value to their property. Before closing this Memorandum, I wish to remark upon a few other points. The Natives belong almost entirely to the three following Christian bodies: The Church of England, the Church of Rome, or the Wesleyan Methodists. In my belief, nothing would tend more to promote the peace of the country, to civilize the Natives, to lead to the settlement of a large European population amongst them, and to the welfare of that European population when so located in Native districts, than that the country should as rapidly as possible bo filled up with European Clergymen. The presence of a European Clergyman and his family in a Native district produces advantages for the Native population which can be only fully estimated by those who have witnessed the results which flow from the residence of a European Clergyman in a Native village. I would, therefore, earnestly recommend that as the new regulations are introduced, the Natives in all populous places should be encouraged to set apart lands for the endowment ami support of Clergymen of the three denominations which I have named. Arrangements should theu be made with the head of the particular religious botly for securing, with as little delay as possible, the services of a Clergyman for the locality in which such an endowment had been set apart. I feel so strongly the benefits which would result from this plan, that, did it rest with myself, I would pay from public funds part of the cost of the introduction of such Clergymen into the country, and their establishment here when they had arrived, and woultl share with the Natives, for three or four years, the salary of the Clergyman until the Native contributions, and the produce of the glebe, might reasonably be expected to be sufficient for his proper support. Again, in selecting persons to introduce the proposed plan for the government of the Natives, I would earnestly recommend that some Military men should, for the present, be employed. I do not think it will be possible immediately to obtain the services of a sufficient number of qualified civilians to fill the posts of Civil Commissioners aud Magistrates. A civilian once put into such a post, however ill-qualified he may prove to be for it, will be very difficult to be got rid of. It therefore appears essential to have time to make well considered choices, and to choose really able men. Energetic men are required for these offices. On my return here, I have been much struck with the increased ability, energy, and independence of the Natives. They now require very able and energetic men to influence them, to shew them where they are wrong, and to lead them to what is right. Tho largo Military force now stationed here, affords a considerable choice of officers in the prime of life, well educated, energetic, accustomed to command, and, what is of equal importance, accustomed to obey, and to carry out, literally and faithfully, any plan which they are employed to bring into execution. It is also of great importance that the officers of the force serving here,

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