A.—No. 17,

•1.

REPORT BY MR. MACKAY RELATIVE TO

Enclosure D.

Enclosure E,

Enclosure Ea.

Enclosure F.

Early in 1864,1 was holding an appointment as Assistant Native Secretary, my proper station being the Middle Island; but Government business having caused me to visit the Thames District, I ascertained that many of the Natives who had been in rebellion then wished to surrender, in accordance with the Proclamation of the 2nd February, 1564. I then received instructions to proceed to the Thames, and take steps to facilitate the return of the Natives to their allegiance. This necessitated my visiting the various settlements in the Hauraki District, and, among others, Ohinemuri. At that place I found Nepia te Ngarara, whom I had formerly known as a gold-miner at Collingwood, in the Province of Nelson, and he informed me that he had found gold in alluvial deposit near Ohinemuri. I also received information from Hanauru Taipari (since named AVilloughby Shortland Taipari) that gold had been obtained near Kauaeranga. I reported these circumstances to the Hon. the Colonial Secretary, then head of the Native Department, in a letter dated 23rd April, 1864, and in the concluding paragraph made the following remarks : —" I would suggest that if a Magistrate is appointed for that district, it should be one of his duties to endeavour to bring about an arrangement for the working of the Thames Gold Fields. If an available field was discovered there, it would be very useful to this Province, and would tend to prevent that depression which otherwise will be felt after the cessation of military expenditure. I visited the Coromandel Gold Field, and as far as I can judge from the limited survey I took of it, am of opinion that it is only the outside of a gold district, and a better field exists in the neighbourhood of the Thames." In May, 1804, I was appointed to be Civil Commissioner for the Waihou or Hauraki District. Subsequently Colonel Chesney sent a report to the Government, informing them of the discovery by him, some time before, of alluvial gold in the neighbourhood of Te Aroha. A proposition was made by the Government for me to form and head a prospecting party, but the disturbed state of the country caused the idea to be abandoned. I was however instructed by the Hon. Mr. Fox to use every exertion to make arrangements for the opening up of the district for gold-mining purposes. A few persons returned to the Coromandel Mines, and in October, 1864, I was ordered to proceed there, to ascertain the arrears of rent due to Biria Karepe and others for the Tokatea Block, and also to make an arrangement for the payment of head-money due to Pita Taukaka, Tanewha Kitahi, Patene Puhata, and their people, for the Kapanga, Ngaurukehu, and Matawai Blocks. The first was a comparatively easy business, but the latter was a task of no ordinary difficulty. The Government agreement was to the effect that the sum of £1 per annum was to be paid for every person who worked on the land, but no returns had been furnished, and there were no data on which to calculate the amounts due to the Natives ; consequently it became a matter of compromise, and a new agreement was made, by which the owners of the land were to receive £1 for every license issued for gold mining, instead of that sum for each person working on the land, which would have always been a source of difficulty and dissatisfaction at the time of making payments, from the fact of there being no other means of ascertaining the number, and the Natives would invariably have claimed more than their right. This, together with the previous agreements, is the reason why, in the subsequent arrangements made about the Thames Gold Fields, the Natives required £1 for every miner's right issued. At the numerous political meetings held in 1864 and 1565, in the Thames District, at which I was present, I always endeavoured to point out to the Natives the advantages which would be derived from the leasing of their auriferous lands, but was met invariably by the old arguments used by the Land League party. The only person who was really anxious to open up his land was Hanauru or Wirope Hoterene Taipari; he contended for a long time against the whole of the Ngatimaru, of whom his father is the principal chief, and it was only because of the constant pressure put on the tribe by him that they at last agreed to allow him to permit Europeans to prospect for gold on his own land. Messrs. Walter Williamson and James Smallman were then engaged by me, at Taipari's request, to prospect on his property, he finding them the greater portion of their provisions whilst so employed, They worked there for several months, but with little success, and were most jealously watched by the other members of the tribe, and brought back immediately they trespassed beyond the Karaka Stream on the north, or the Hape on the south. Under these very unfavourable circumstances the prospectors could not accomplish much, and they left the district. The chief Te Moananui also allowed them to search for gold on his lands, at which time they received some little aid from the Provincial Government. W. H. Taipari afterwards arranged with Paratene Whakautu, a Native who had been engaged in gold mining at Nelson, and Hamiora Kewa, of Ngatipoa, to continue the search for gold on his own lands; they succeeded in obtaining a small quantity from the south bank of the Karaka Stream, which was brought to Auckland by Mr. Eogan, Judge of the Native Land Court, and the chief W. H. Taipari, and shown to the Honorable Dr. Pollen and myself. At this time the Province of Auckland was in a sad condition; the withdrawal of the Imperial troops and the removal of the seat of Government to Wellington had caused a stagnation in business, and commercial failures were of frequent occurrence ; numbers of labouring men were starving for want of employment. The news of the discovery of gold at Kauaeranga caused immediate excitement, and the offices of Dr. Pollen and myself were besieged with applicants for permission to go to the Thames. These we were compelled to refuse, but the danger of the district being " rushed," and a quarrel ensuing with the Natives was so imminent, that, after consulting together on the subject, we agreed to proceed at once to Kauaeranga, and endeavour to make an arrangement with the Natives for the leasing of their lands to the Crown for gold-mining purposes. On our arrival there we first inspected the ground whence gold had been procured, and having satisfied ourselves of its presence there we convened a meeting of the Natives. We found a majority of them objected to any lease being executed; but after very lengthened arguments we succeeded, on the 27th July, 1867, in making an agreement with Te Hoterene Taipari, W. H. Taipari, Eaika Whakarongotai, and Eapana Maunganoa, to allow mining over their lands, bounded on the north by the Kuranui Stream, on the south by the Kakarimata, on the east by the summit of the seaward line of hills, on the west by the sea and certain survey lines. A large portion of the Moanataiari and the whole of the Waiotahi were excluded from this arrangement by the opposing portion of Ngatimaru.