D.-No. 2

No. 8. The Hon. the Colonial Secketaby to the Supebintendext, Auckland. Sib, — Colonial Secretary's Office, Auckland, January 4, 18G5. I have to acknowledge the receipt of your Honor's letter of the 28th ultimo, in which you siibmit proposals in reference to the management of the immigration into this province, undertaken by the late Government in pursuance of the New Zealand Settlements Act, 1863, and the Loan Appropriation Act, 1863. I have also to acknowledge the receipt of your Honor's letter of the 29th ultimo, in reference to the same subject. I have the honor to express my satisfaction at finding that your Honor is prepared generally toaccept the management and responsibility of the arrangement. I transmit copies of documents showing the nature of the agreements entered into with the immigrants and Emigration Agents, as far as I am in possession of them, particularly the correspondence referred to with the Emigration Agents in England. I return the documents relating to the immigration from the Cape of Good Hope. As regards the location of the immigrants, and their employment upon public provincial works, I desire to express generally the views of the Government. One main principle to be borne in mind is, that engagements entered into with these immigrants by the Government should be scrupulously fulfilled. Another is that the location of the settlers should be effected in such a manner as will best tend to> carry out the objects of the Colonial Legislature, who appropriated altogether in 1863, £600,000 forthe " introduction into the Northern Island of settlers from Australia, Great Britain, and elsewhere,, and for the cost of surveys, public works, and other expenses incident to the location of settlers." The objects of the Legislature may be inferred from the Loan Appropriation Act, 1863, to be the formation of permanently defensive settlements, and the recovery of the cost of such formation from the province concerned, either from the sale of land within it, under the New Zealand Settlements Act, 1863, or ultimately from its revenue. It may be safely concluded that the administration by the Provincial Government of the whole undertaking, under the overriding control of the General Government is the best means of dealing with the subject. It is the best, because the Province which conducts its owu Provincial Emigration has at its disposal administrative machinery for the purpose ; because it can combine the two classes of emigration into one harmonious whole, the elements of which mutually assist each other ; and because the Province is most interested in the economical and successful management of the matter, as the direct recipient of the benefits conferred, and the ultimate payer of the cost. On this assumption it remains for the General Government to indicate to the Provincial Government in broad outline its views of such a " location " of the immigrants as will compatibly with the means at the disposal of the General Government, best carry out their engagements the wishes of the Legislature. The promise of temporary employment on public works must be considered an engagement. The formation of thriving permanent settlements will moreover be the best means of fulfilling the objects of the Legislature in the pacification (actually and prospectively) of the country; in the civilization of the natives ; and in so enhancing the value of adjacent Crown lands as to make it the meansof refunding in a considerable degree the expenditure incurred. On these grounds the General Government will, within its means, give to the Provincial Government every resonable facility for rendering the location of these immigrants the means of creating permanent settlements, and securing to the utmost extent beneficial results. Having expressed these general views, I observe in particular that the employment of the immigrants upon public works must be undertaken by the Province: the works themselves to be arranged in concert with the General Government, which will place at the disposal of the Provincial Government means for the purpose so far as it lies in its power, subject to the question of future adjustment between the Province and the General Government, under the provisions of the Loan Appropriation Act, 1863. Pending the realization of funds from the disposal of securities issued under authority of the Acts of last session, or from the sale of land, the Government will place in the hands of the Provincial Government sufficient 8 per cent, debentures (1864) to cover these and all other estimated liabilities to be undertaken by the Provincial Government, on account of these immigrants. The question whether the works should be undertaken by contract, or otherwise, is one which will be properly left to your Honor to decide. As regards surveys, I concur in your Honor's remarks, as to the importance of conducting them upon a general and true system, and I would gladly facilitate your Honor's wish to institute a proper geodetic system of triangulation, embracing the whole of the confiscated territory, with a view to thp future extension of such system over the whole of the province. At the same time I must point out that the heavy burden now thrown on the Government, by the sudden arrival of immigrants in large numbers, for whose reception no preparation has hitherto been made, renders it imperatively necessary to lose no time in placing them upon their land, for which purpose the quickest kind of survey practicable, imperfect though it may be, must be had recourse to. I am desirous that no time should be lost in organising such a plan of surveys. I transmit a copy of an Order in Council, declaring certain districts to be settlements, under the New Zealand Settlements Act, available for the location of military settlers and immigrants. I shall be glad to confer with your Honor on the subject of laying out these districts, or some of them, for the immediate location of the newly arrived immigrants, and for sale. In reference to your Honor's wish to be informed of the particulars of charges which, in the opinion of Government, ought to be made against the Province, upon the final adjustment of accounts, I will supply the required information as speedily as possible. As regards the number of immigrants expected, I have no means of giving you an approximate estimate beyond what appears in the published papers, and in the other correspondence transmitted to

4

CORRESPONDENCE RELATIVE TO MAINTENANCE