E—No. 9 See. I.

With regard to other matters, I have now to make the following further observations for your guidance. 1. — Relations between Commissioners and Magistrates. The questions here involved make it necessary that the subject should be very carefully considtred before final instiuctions are laid down. It is, lowevtr, the intention of the Government as early as possible to publish in a circular foitn such general directions as may guide the several classes of ISative officers in their official communications; and these will be sent to you in due course. 2.— Payment of Salaries. For the present the Sub-Treasurer at Eussell will be directed to advance to you such sums as you may require for paying on the 1st of each month the salaries of all officers under your orders. You will render accounts current for such advances in the usual way, and acquaint the Minister for Native Affairs with the requisitions you make on the Sub-Treasurer. Eventually it is intended that the Civil Commissioner shall be the Sub-Treasurer of his district; but the financial arrangements required mu6t be postponed till the Colonial Treasurer's return from the South. 3.— Letters of Appointment to Chiefs. As I have stated, it is probable the Eunanga will be formally constituted by Order in Council or ether instruments; meanwhile there is no objection to your signifying his appointment to each Chief at once, in the manner proposed by you. 4. Erection of Buildings. The Government arc so desirous of giving you every support at the outset of your difficult task, that it is with regret they have felt obliged to reduce considerably the amount you propose should be allotted to the erection of buildings. They desire to record their opinion, that the Natives themselves should in each district be called upon to contribute labour and material towards such buildings as may be necessary for the Bunauga. In the Waikato country the Natives in several places, put up really commodious buildings without any assistance from the Government, except in supplying doors, windows, &c; and this example ought to be sedulously inculcated elsewhere. The Government have decided to place at the disposal of the Eunanga the sum of £100 towards building an Assembly Room and Court House for the Bay of Islands district; and they trust you will be enabled to obtain from the Natives themselves such contributions of material and labour as will suffice to put up all that is presently required. They desire me to thank you for the liberal manner in which you have offered to convey a piece of hind as a site for the proposed buildings; but they would rather leave the matter to be laid before the Runauga. It may be that the latter would prefer some other site than Waimate for a permanent building and the place of meeting; and in this, as in every other practicable case, the Government wish to leave the decision entirely with the Eunanga; satisfied that any scheme of government proposed for the acceptance of the Natives, will best recommend itself to them if they shall feel that with it practical powers and the application of funds to public purpeses will immediately come into their hands. 5. Authority for trifling charges. Iu deference to your recommendation, the Government will authorise you to expend a sum not exceeding £10 in each of the three Hundreds constituted as above-mentioned, on the occasion of meeting the chiefs to inform them of their appointments. But, considering the very large sum which was lately spent in provisions for them, it will be desirable to reduce your disbursement under this head to the smallest possible sum. 6. Clothing for the Kareres. As the contract has been made for providing the uniforms of the Kareres here, all that will be necessary will be that a rough measurement of the men who may be recommended by the Eunanga for that office should be sent up with their names. Directions for this will be enclosed herewith. 7. Date from which. Native appointments to be made. In the case of the ten chiefs whose names are given in your list, their appointments will commence from the 1st January last, as well as that of the Warden. The appointment of the Kareres and any others will date from the time of their nomination by the Runanga. I have, &c., Henry Halse, Acting Native Secretary. George Clarke, Esq., Civil Commissioner, Bay of Islands.

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BAY OF ISLANDS.