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Enclosure 3 in No. 50. His Honor T. B. Gillies to the Hon. the Colonial Seceetabt. Sib, — Superintendent's Office, Auckland, 30th December, 1872. I have the honor to acknowledge receipt of yours of 11th instant, No. 395, relative to the establishment of an immigration settlement at Victoria Valley, Mongonui. In reply, I have to inform you that there are at the disposal of the Provincial Government in that district at least 10,000 acres of good agricultural land, principally bush. It is situate from fourteen to seventeen miles from the harbour of Mongonui, to which a steamer runs weekly from Auckland. A good main road has been formed from Mongonui through the block to Kaitaia Settlement, and the Provincial Government are preparing to execute a minor triangulation of it (a major triangulation has already been executed by Captain Heale), for the purpose of throwing it open for settlement under what is known as the Homestead Act ("The Auckland Waste Lands Act, 1870"). For such a district the immigrants required would be from twenty to thirty small-farmers, who, with their families, would take up say 100 to 400 acres each, with sufficient capital to erect houses and bring the land gradually into cultivation. Each such family, to be successful, should have a capital, of say, from £400 to £1000. Employment would thus be given to a certain amount of labour, say sixty labourers without or having a trifling capital. Sufficient land would thus be left for extension of holdings, for the natural aggregation of other settlers to the district, and the prospect of industrious labourers becoming small landowners. Although a fine district, I would deprecate the planting it with mere labourers without capital, a course which would only cause disappointment and distress, there being no market for labour in the district. In reference to your inquiry as to " what provision it is proposed to make for the supervision and care of the immigrants after arrival," lam somewhat at a loss to understand the question. As I understand the present immigration scheme, the Provincial Government have been relieved of these duties as they have been of the means of performing them, and the General Government have undertaken them, so that I can hardly suppose that you suggest that the Provincial Government should provide for the supervision and care of those immigrants apart from the provision which no doubt your Government will make in regard to all immigrants brought out. I presume, therefore, that what you desire is, suggestions as to what provision ought to be made by your Government in respect to these matters. I would suggest that as soon as possible after arrival in Auckland, the Immigration Officer here should put them on board the steamer to Mongonui with their luggage, and accompany them ; that meanwhile an energetic settler at Mongonui, such as Captain Butler, should be appointed to take charge of them there, and convey them to their locations and aid them by advice, and enlist the assistance of the present settlers on their behalf. A surveyor should also accompany them to lay off their several allotments ; but little beyond this would be required to lay the foundation of a flourishing settlement. Provisions and supplies they could get at Mongonui. In connection with this subject, I annex copy of a letter received from a Moravian settler here, proposing to form a Moravian settlement in that locality. From the well-known character of the Moravians as settlers, I desire to encourage them as much as possible, and I annex copy of my reply to the applicant. Should I have erroneously stated anything in connection with the Government immigration scheme, I shall feel obliged by you at once advising me; and I shall feel further obliged by your advising the Agent-General by first mail to give every assistance and encouragement to any application which may be made to him on behalf of this class of settlers. I have, &c, Thomas B. Gillies, The Hon. the Colonial Secretary, Wellington. Superintendent. Sub-Enclosure to Enclosure 3 in No. 50. Mr. S. Dunn to His Honor T. B. Gillies. Sib,— "Wade, 12th December, 1872. I have the honor to state that, as a member of the Moravian body, and knowing the anxiety and intention of its chief members, with whom I am connected, to form a settlement in New Zealand, I would solicit your interest in behalf of such intention, and trust you will be pleased to furnish me in reply with such information as your Honor may deem fit to facilitate this undertaking, and enable me to set its advantages before my friends with as little delay as possible. I would also request information on one or two points for our guidance, viz.:—lf a sufficient number of families are found to join the party to complete one ship, will such a ship be found for the immigrants of the Moravian Society from London ? What would be the expense per head ? "Would the ship be chartered by the Government to land the said immigrants at Eussell, with a view of settling in the Victoria Valley ? AVould accommodation be found for them at Russell for a few days to prepare for the settlements ? What quantity of land could be guaranteed to the party, and on what terms ? I have, &c. His Honor the Superintendent, Auckland. Samuel Dunn. Sub-Enclosure 2 to Enclosure 3 in No. 50. His Honor T. B. Gillies to Mr. S. Duircf. Sib, — Superintendent's Office, Auckland, 30th December, 1872. I have the honor to acknowledge the receipt of your letter dated the 12th instant, and regret that I have been unable sooner to reply. I shall be glad to further in every way the planting of a Moravian Settlement at the Victoria Valley, and have been in communication with the Minister for Immigration on the subject. The following information will, I trust, be such as to enable you at once to write to your brethren to form a settlement in the locality mentioned.

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