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Tou inform me, at the same time, that you have appointed Mr. Buller to the office of Private and Confidential Secretary to yourself, at the rate of £400 a year, but you have omitted to state the date from which this appointment was to commence, though I infer from your letter that it was some time towards the end of March. His Excellency the Governor has been pleased to accept Mr. Buller's resignation of his offices, of which fact be will receive notice from the Hon. the Minister of Justice. With regard to his appointment as Confidential Secretary to yourself, I have the following remarks to make :— The Government recognize the propriety of the selection of the person to fill an office of this naf tire being left entirely in the hands of the officer to whom he is to be attached, and the Government therefore make no objection to your choice of Mr. Buller. The rate of salary which you have assigned to the office is also sanctioned. I must however inform you that Mr. Buller cannot be allowed to retain this appointment unless he furnishes a full explanation in reply to Mr. Grisborne'a letter No. 66, of sth July, 1872, as called for by Mr. Reynolds in his letter No. 47, of 7th May, 1873. Another condition of Mr. Buller's retaining the office to which you have appointed him must be, that he shall refund any sum that he may have received from you during the period from Ist January to 30th June, 1573, in excess of the £200 voted for him by "the General Assembly. That vote was taken at the time that the extension of his leave of absence was authorized, and was intended, as the language of Mr. Hall's letter No. 150, of the sth December, clearly conveys, to be paid in tho shape of salary during the period of the extended leave. Mr. Gisborne also, in his letter of the sth of July, 1872, uses the following words: —" It must be understood that ho (Mr. Buller) is not under any circumstances, after the 31st December next (1872), to draw any salary as Resident Magistrate, or as Acting Secretary to yourself." The Government are surprised that, in the face cf these communications, you should have assigned a salary to Mr. Buller as your Secretary for any period prior to the Ist of July, 1873; and any amount that he may have drawn anterior to that date must, as I have already stated, be at once refunded, as a condition of his continued employment. I have, &c, The Agent-General for New Zealand, London. Daniel Pollen. By Authority: Geobgb Dcdsbubt, Government Printer, Wellington.—lB73. Price 3(1.]