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No. 278, of date 10th April instant, may be returned to me in order to the formal closing of the arrangement for the purpose of the swamp. The Hon. the Native Minister, Wellington. D. Pollen.

The Hon. Dr. Pollen to Mr. T. Ettssell. Sic, — General Government Offices, Auckland, 17th April, 1873. With reference to your proposals to purchase the swamp land between Hamilton and Piako within the eastern boundary of the confiscated lands, and to make a road from Hamilton to the head of the navigation on the Piako Eiver, I have been directed by the Hon. the Native Minister to inform you that the price offered by you for the land — namely, ss. per acre —will be accepted; that an allowance will be made to you for such amount of money not exceeding one-half of the whole purchase-money as shall have been shown to have been expended on the making of the road, and that the purchase will be required to be completed within two years from this date. The papers not being in my hands at this moment, I am not able to do more than give the basis of this agreement, leaving details for future settlement. I have, &c, D. Pollen, Thomas Eussell, Esq., Auckland. General Government Agent.

Since receipt of this letter I saw Dr. Pollen; he has not embraced in this letter the conditions of my memorandum handed to him. Dr. Pollen informed me he could not do so because my memorandum was at Wellington, and he had no copy; but he would do so, and that the arrangement was concluded upon the terms contained in my memorandum, except that the time for payment of purchase money is fixed for two years, instead of three, as I proposed. I have, &c, 18th April, 1873. T. Eussell.

This, as I understand it, is the proposal accepted by the Government. 18th April, 1873. D. Pollen, Agent.

It is understood that no land affected by this engagement is to be taken for sale by the Government if (or?) for other purposes than to satisfy engagements made for the settlement of Native claims within the block between Tamahere and the hills marked A on plan. 18th April, 1873. D. Pollen.

The Undee Seceetaey, Native Office, to the Hon. Dr. Pollen. Sib,— Native Office, Wellington, 18th April, 1873. I have the honor to forward herewith, for your information, copies of correspondence and plan requested by you relating to the proposal of Mr. Thomas Eussell to construct a road across the great swamp in Waikato, and to purchase the adjacent lands from the Government. I have, &c, H. T. Clabke, The Hon. Dr. Pollen, Auckland. Under Secretary.

Memobandusi for Inspector of Stteveys. (Enclosures.) The surveyed allotments on the margin of the swamp near Hamilton are clearly not included within the limits of the purchase made by Mr. Thomas Bussell and his friends. But the land is required by them for drainage purposes, and it is right that they should have at least the privilege of pre-emption. In laying out the boundaries of the block, therefore, these allotments may be included ; the price to be paid for them being left for settlement before the Crown title is given. 4th March, 1874. D. Pollen,

In personal interview, Hon. Dr. Pollen confirmed my directions to the surveyor to adopt as the southern boundary the lines cut by Simpson 03° by compass from Eunciman's south-east boundary, then by that boundary to the surveyed road, then by that road as surveyed, and by the production of it near the edge of the swamp till it meets the confiscated boundary. 4th March, 1874. T. Heale.

Mr. D. Simpson to Hon. F. Whitakeb. Drainage Works, Waikato and Piako Swamp. Sib,— Hamilton, 19th April, 1874. I forward you the plan showing the extent of drainage works laid out to date. The drains are marked by blue lines. Nos. 1 and 2 are complete (2^ miles) ; Nos. 3, 4, 5, 6, 7, 8, 9 and 10 are in operation (13 miles) ; Nos. 11, 12, 13, 14, 15, and 16 will be let on 24th instant (11 miles). The proposed road towards the Piako has been laid out 3? miles, and we are proceeding with the work now. If there is any point on the Piako you would prefer for a terminus let me know, and, if favourable, it can be adopted. Another main road, which would be of advantage to you, is one leading in a direct line from Hamilton towards Te Au, Waikato, which would follow the line of the Thames and Waikato Eailway marked on plan. These would be the main roads through your purchase; the other roads required to give access to farms, &c, &c, shall have my attention as the work progresses. As soon as possible you should have your boundary defined by the Government, as a great many