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in their portion of the province that the two races have been living in for some time. No great number of them have been even actively hostile to the Government, and it can hardly be said that any of them, joined in the last hostilities on this coast under Titokowaru. The Ngatiinaru joined the Ngatiruanui under Titokowaru, and, being an offshoot of the latter tribe, could not well avoid doing so. Partly, I believe, with the object of not affording Ngatiruanui an asylum again in Ngatimaru in the event of hostilities, and perhaps having their lands confiscated, they have been steadily alienating their lands to the Government, and show every sign of continuing to do so, until only reserves for their own use are left. They are peaceable and well behaved, and more temperate than most of the coast Natives. They are, however, but a small tribe. The only homicide among the Natives in the province last year, took place in Ngatimaru,—one Hauteki shot Rongowhenua, of higher rank, who had been living for some time with the wife of Hauteki. The Native feeling is with the man who was shot, because the character of the woman, Te Piki, was notorious previously, and because the husband did not resent her leaving him at the time, instead of allowing a long period to elapse. One of those curious phases of Maori feeling and reasoning that guide to a great extent their line of conduct, has arisen out of this homicide or murder. The Native who shot the other was a land-seller ; the Native who was shot was a staunch opponent of land-selling. The daughter of the latter, in consequence of his having been shot by the former, has determined to sell her own and the landed interests that have passed to her from her father. Hauteki with his wife Te Piki are in concealment, it is said with Titokowaru and his people. Ngatimaru Natives report that Ngatimaniapoto has offered to join in attacking Titokowaru for sheltering Hauteki. If this is true, I do not believe it will be accepted. The time that has elapsed is altering the feeling from revenge for the dead to sympathy for the living. The Ngatiruanui Natives south of "Waingongoro have sold some land outside of the confiscated boundary, and have also shown a disposition to meet the Government as regards the occupation by settlers of those portions of the confiscated lands that have not hitherto been occupied. A source of difficulty exists as to the management of the reserves that have been made by the Government for the Natives out of the confiscated lands. The Natives have insisted on leasing the greater portion of these reserves to Europeans, and the difficulties that arise are these: these reserves have been made for the benefit of the tribes who had formerly rights where the reserves are located; but inasmuch as some of the_members of a tribe had no rights formerly in the land reserved, their former rights having been outside of the reserves, and alienated by the Government to the settlers, when a reserve is let to a European the original owners of the land claim and take all the rent, leaving the rest of the tribe without land or income, a state of things that will make paupers of a portion of the Natives. It is useless to tell them that the tribal rights have disappeared, and that they hold a reserve by Crown grant for the benefit of the whole tribe. The line of argument with them is, that if it is given to the tribe because it had rights formerly in the land, those in the tribe who held rights formerly should have them now. As the leading Natives have determined to lease these lands, I recommend that some system for regulating their lease should be adopted in the interests of the whole tribe, and because a better class of settlers will take them, if they can obtain the sanction of the Government, than are likely to be got when they are taken without that sanction. I recommend that in future reserves for the Natives in the confiscated lands be a number of small ones instead of a few large ones; and that they be located, as far as practicable, where their former rights wore. The benefits will be that they will be scattered amongst the settlers, and that, if let, they will be taken for farming, as not large enough for pastoral purposes, and a consequently larger European population will be maintained on them than is at present the case with the majority of the reserves in Ngatiruanui. "With reference to the Waimate Plains, the difficulty in arranging for their peaceable occupation has been for years, and is still, due to the advice given to the Natives by persons whose interests are adverse to the Government, not to come to any arrangement with it, and that the Natives will be eventually allowed to deal directly with Europeans for their lands. Amongst these I can instance Colonel McDonnell, Captain Blake, Mr. Worgan, and Mr. Knnimore. The boundary of my duties has been extended this year to include the confiscated land between Patea and Waitotara, occupied by Ngarauru. A difficulty arose in this district from a Native named Tapa, his two brothers, and a few other Natives, settling on some outlying sections granted to military settlers in 1867, and since acquired by a Mr. Dickie. The grounds of his occupation he stated to be, that he was on land that was surveyed and sold by the Government in September last (as it happened, he was wrong, for the land he referred to was adjoining Mr. Dickie's), on the east side the Kohi Stream, and that he did not recognize the confiscation ; for' had not my predecessor (Mr. Parris) and myself paid money to the Whenuakura Natives on account of the land on the west side of the Kohi; and if that were right, what was the confiscation worth ? After many meetings with Tapa, at one of which Mr. Booth, E.M., and Major Kemp (Rangihiwinui) were present, and at which I explained to Tapa that the Hon. Sir D. McLean did not sanction the purchase of confiscated lands, and that what had been given on the west side of the Kohi was a gift from the Government in consideration of the former claims of the tribe in the block ; and that he should have the same consideration on the east side of the stream. All argument failing to move Tapa, Mr. Dickie took out a summons against him and his two brothers, and my opinion being asked, I advised that the law take its course. This resulted in their being committed for trial at Wanganui, where the indictments against them were withdrawn on Tapa promising not to trouble Mr. Dickie any further, a promise which he has kept. Throughout I was very much pleased with the manly bearing of Tapa and his brothers. He told me that I was right to take them by night from Patea to Wanganui, as the tribe would have felt bound to take them out of my hands, and he wished to see the question between himself and the Government carried to its conclusion according to our laws. Tapa was not much supported by his tribe in settling on Mr. Dickie's land, although all the Natives who have had their land confiscated sympathized with him. When, however, he was to be tried, the tribe subscribed £100 to retain Dr. Buller to defend Tapa and his brothers; but as the tribe feel very sore at losing the money, the idea has suggested itself to them to let the Government take the rest of the confiscated and unconfiscated land of the tribe, so that a similar question to Tapa's may not again arise.