15.—10

12

The Hon. G. M. AVaterhouse to the Hon. E. Richardson. Government Buildings, 24th January, 1873. Re Kawa Kawa. —Referred your telegram to Hall, and have just seen Hector, who thinks no good would result from Hutton's going Kawa Kawa, as both Hutton and Hector remain of former opinion that the two bore-holes already sanctioned should first be completed. Submitted is Hector's report: — "Re Kawa Kawa Coal Mine. —Captain Hutton is at present engaged in ail important survey which it would be inconvenient to suspend. He examined and reported on the mine Last year, at tho special request of the Directors of the Company, but as the mine was full of water he was not able to do more than confirm suggestions I made in 1866 for testing the field. One bore-hole commenced about that time has since been completed (17th April to 17th July), and the coal was cut in 277 feet from the surface, but was only 5 feet thick instead of 13 feet as reported. Two more of the bore-holes originally suggested have still to be made before any further data can be available for forming an opinion of the value of the property. I have consulted with Captain Hutton in replying to this reference, and he agrees with the above. —James Hector." The Hon. E. Richardson, Auckland. G. M. Waterhouse. Dr. Hector to Hon. Dr. Pollen. Government Buildings, 25th January, 1873. Bore-hole sites selected are marked on my map, 6 chains to inch, sent to Auckland in 1866, copy of which Mr. Whitaker has. Hutton also pointed them out on tho ground to AVilliams, the manager, who knows exactly how to proceed if he gets funds ; the bore that should be first done is the 300 feet one, G chains south of Moodie's bores 7 and 8, being as far up the gully as possible. Dr. Pollen, Auckland. J. Hector. The Hon. E. Richardson to Mr. T. Russell. (Telegram.) AVellington, 4th February, 1873. Have you sent papers relative to Kawa Kawa ? If not, please do so by first boat. E. Richardson. Mr. T. Russell to the Hon. E. Richardson. Dear Sir, — Auckland, sth February, 1873. I enclose the telegrams. AYe have sent instructions to the Bay to begin tho bore-holes. AVill you write us in reply to our letter, yet unanswered, or shall we write again in terms of the arrangement made with you here ? which I understand to be that we go on with the holes indicated by Dr. Hector or Captain Hutton, .and that you supplement the Company's expenditure to the extent of £1,000 ; the work to be certified as done by some Government officer to bo appointed by you. I have, &c, Tho Hon. Mr. Richardson. T. Russell. The Under Secretary to Mr. J. A. Gilfillan. Sir,— Colonial Secretary's Office, Wellington, 14th February, 1873. AVith reference to your letter of the 3rd December Last, and to subsequent correspondence on the subject of exploration of coal at the Kawa Kawa, lam directed by the Colonial Secretary to inform you that the Government will supplement the Company's expenditure to the extent of £1,000 in boring in the spots indicated by Dr. Hector, the work to be certified to by .an officer appointed by the Government for that purpose. I have, &c, J. A. Gilfillan, Esq., Secretary, G. S. Cooper. Bay of Islands Coal Company. Mr. J. A. Gilfillan to the Hon. the Colonial Secretary. Bay of Islands Coal Company (Limited), Sir,— Auckland, 26th February, 1873. I have the honor to acknowledge receipt of tho Under Secretary's letter of date the 14th instant, informing mo that the Government will supplement the Company's expenditure, to the extent of £1,000, in boring in the spots .at the Kawa Kawa Coal Mines indicated by Dr. Hector, the work to be certified to by an officer appointed by the Government. In reply, I am instructed to inform you that my Directors accept the conditions named, and that tho work has been begun. I have, &c, J. A. Gilfillan, Tho Hon. the Colonial Secretary, AVellington. Secretary. The Under Secretary for Public Works to Mr. J. A. Gilfillan. Sir,— Public AVorks Office, AVellington, 14th March, 1873. I am directed by the Hon. Mr. Richardson to acknowledge the receipt of your letter to the Hon. the Colonial Secretary, of 2Gth February, relative to supplementing the Company's expenditure, &c, and to inform you that when payment is asked for, Mr. Stewart, Resident Engineer, Auckland, will certify to tho account from time to time. I have, &c, John Knowles, J. A. Gilfillan, Esq., Secretary, Under Secretary. Bay of Islands Coal Company,