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suffice to make the road and the main drain on both sides of it, then it will appear that the difficulty of reclaiming the swamp is much less than was supposed, and this is the element of uncertainty which Mr. Heale and myself (see memo. 73/164) desired to eliminate from the transaction by means of the preliminary survey which we recommended to be made. If the land can be drained easily, the upset price, 55., which I have named, would not, in my opinion, be sufficient. In the absence, however, of specific information, upon which an estimate of the value of the land measured by its drainability can be based, I think that the proposition made by me to Mr. Russell is fair to the projectors and to the public. I have, Ac, The Hon. the Native Minister, Wellington. Daniel Pollen. The Government to sell the swamp on the following terms: — 1. The boundaries of the land to be those defined by the accompanying tracing. 2. The price to be ss._per acre. 3. The purchasers to construct a main line of road over the land defined, in the best direction, to form part of a road to connect Hamilton or Ngaruawahia, or both those places, at his option, with the head of the navigation of the Piako River. 4. The road to be at least 66 feet wide, and to be formed with earth, to be taken from two large deep drains, one on either side, thrown up between them. 5. The road to be properly formed and levelled, and left suitable for laying down thereon a line of iron rails when required. 6. On the completion of the road, or the expiration of three years, the purchase-money to be due, and on payment thereof the purchaser to be entitled to a grant of the land. 7. As a contribution by the Government towards tlie cost of the road, and the necessary surveys, drains, and works connected therewith, an allowance to be made out of the purchase-money. 8. Such an allowance not to exceed 2s. 6d. per acre, proof of expenditure to be made to the Government; and if the works cost less than 2s. 6d. per acre the purchasers are to pay the Government the difference in cash. 9. After the above allowance, the balance of the purchase-money to be paid in cash on the issue of the Crown grant.

Mr. T. Russell to the Hon. Sir D. McLean. (Telegram.) Auckland, 15th April, 1873. Youe terms are too hard. Our heavy expenditure on roads and drains, probably £20,000, will come on within twelve months. We cannot use the land for two years, or even then. Will compromise by paying for it within two years instead of three. Reply prompt. The Hon. Sir D. McLean, Wellington. T. Russell.

The Hon. D. McLean to the Hon. Dr. Pollen. (Telegram.) Government Buildings, 15th April, 1873. Russell telegraphs again about swamp; says his heavy immediate expenditure is sufficient guarantee for completion of bargains. I thought matter was all settled, but will now agree, if that is only obstacle, to your proposal of giving twelve months to pay half-a-crown an acre, and to other proposals you make. T. Russell, Esq., Auckland. D. McLean.

The Hon. D. McLean to Mr. T. Russell. (Telegram.) Government Buildings, 15th April, 1873. Have told Pollen I agree to twelve months to pay half-a-crown an acre, and to his other proposals. Considered matter settled days ago. T. Russell, Esq., Auckland. D. McLean.

Mr. T. Russell to the Hon. D. McLean. (Telegram.) Auckland, 15th April, 1873. Swamp.—Pollen waits reply to his telegram to you. I will not pay down 2s. 6d. per acre; my heavyimmediate expenditure is sufficient guarantee for completion of bargain. The Hon. D. McLean, "Wellington. T. Russell.

The Hon. D. McLean to Mr. T. Russell. (Telegram.) Wellington, 16th April, 1873. Consideeing the heavy outlay you will have to make in roads and drains, I agree to accept the payment of the 2s. 6d. per acre within two years. T. Russell, Esq., Auckland. D. McLean.

The Hon. D. McLean to the Hon. Dr. Pollen. (Telegram.) "Wellington, 16th April, 1873. T. Russell considers my terms too hard. As it is probable a heavy expenditure of £20,000 will have to be made on roads and drains, I therefore agree to accept the payment of 2s. 6d. per acre within two years, and have telegraphed to him to that effect. The Hon. D. Pollen, Auckland. D. McLean.

The Hon. Dr. Pollen to the Hon. the Native Ministeb. (Telegram.) Auckland, 4.40 p.m., 16th April, 1873. No. 93. —Please to direct that Russell's letters, or copies of them, and the plan sent with my letter 2—l. 13.