C—No. 3

The Provincial Council, after much consideration, thought that the best way of dealing with the matter would be to vote sufficient funds to enable the Government to regain possession of the lands which had been sold. It now appears, however, that His Excellency cannot be advised to assent to the Bill which was passed in accordance with this resolution. It further appears, by reference to the correspondence which passed between the General Government and the late Superintendent on the subject, that in your letter of tho 16th February, it is stated that any Appropriation Act of the Province of Otago, purporting to give effect to the Proclamation of the 20th December, 1864, issued by His Honor the Superintendent, would have in the opinion of the Attorney General to be disallowed. The Council would not therefore, if they had desired it, have voted the sum needed to pay the tax with any hope of obtaining His Excellency's assent to the vote, and I have now the honor therefore to request that you will inform me what action, if any, would receive the sanction of the General Government in connection with the undertaking of the late Government. I have, &c, J. Richardson, The Hon. the Colonial Secretary, Wellington. Acting Superintendent. No. 4. The Hon. the Colonial Secretary to His Honor the Superintendent, Otago. Sir,— Colonial Secretary's Office, Wellington, 21th July, 1865. I have to acknowledge the receipt of your Honor's letter, No. 4548-4, of the 15th instant, on the subject of the withholding of His Excellency's assent to the Appropriation Bill, No. 2, passed by the Provincial Council of Otago, and reserved by the Superintendent for the signification of His Excellency's pleasure thereon. In reply, I have to inform your Honor that if a measure is introduced into the General Assembly egalizing the Bill in question, the Government will not, under the circumstances of the case, oppose such measure. I have, &c, His Honor the Acting Superintendent, Dunedin. J. C. Richmond. No. 5. The Superintendent, Otago, to the Hon. the Colonial Secretary. Province of Otago, New Zealand, Sir,- — Superintendent's Office, Dunedin, Ist August, 1865. I have the honor to acknowledge the receipt of your letter No. 311, of 24th July, 1865, and in reply have to thank you for the assurance that if a measure is introduced into the General Assembly legalizing " The Otago Appropriation Bill (No. 2), 1865," the Government will not oppose it. I have, &c, J. Richardson, The Hon. the Colonial Secretary, Wellington. Acting Superintendent.

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RURAL LAND SOLD IN PROVINCE OE OTAGO, ETC.