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The Assistant Law Officer, —Draft regulations herein submitted to you, in accordance with the Hon. Mr. O'Rorke's instructions. —C. E. Haughton.—l3th August, 1874. Under Secretary for Crown Lands, —May I ask you to say whether I am to revise these draft regulations as arc submitted ? If they do not embrace all that is required to be inserted in them, perhaps you will kindly furnish me with a synopsis of the actual agreement between Mr. Russell and the Government.—W. S. Reid.—2oth August, 1874.

Teems agreed on between Sir D. McLean and Mr. Russell. The price to be ss. per acre. The purchaser to construct a main road, to form part of a road connecting Hamilton or Ngaruawahia, or both those places, at his option, with the head of the Piako. 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. The road to be properly formed and levelled, and left suitable for laying down thereon a line of iron rails when required. (10th April, 1873.— Sir D. McLean telegraphs to Dr. Pollen that road should be sufficiently wide, and available for loheeled traffic.} On the completion of the road, or at the expiration of two years, the purchase money to be due; and on the payment thereof, the purchaser to be entitled to a grant of the land — i.e., £10,000 to be paid within two years {vide telegram Wth April, 1873). As a contribution by the Government towards the cost of the road and the necessary surveys, drains, &c, an allowance to be made out of the purchase money. Such allowance not to exceed 2s. 6d. per acre ; proof of expenditure to be made to Government; and if the works cost less than 2s. 6d. per acre, the purchasers are to pay the Government the difference in cash.

The agreement is thus settled between the Hon. Sir D. McLean and Mr. Russell. But the regulations to allow of its being carried out are not yet published; neither has any agreement been made which is binding in law. Regulations are herewith, which have not been drafted in accordance with the terms come to between Sir D. McLean and Mr. Russell. Remarks are made opposite the clauses. One question remains to be decided. Is the Government or is Mr. Russell to decide the line of road ? Mr. Russell's proposal is that the line shall run from Hamilton or Ngaruawahia, or both places, at his option, and no demur has been yet made to this. Mr. James Mackay now proposes a new line. Once the above-asked question is decided, there is no further objection to publishing of the regulations. 20th August, 1874. J. H. St. John.

Get regulations printed. Captain Heale should decide the best direction for the line of road.— D. McLean.—24th August, 1874.

Mr. C. E. Haughton to the Hon. the Native Minister, —There does not appear to be any definite agreement between the Government and Mr. Russell. The heads of this should be settled. Mr. Reid points out the difficulty under the present circumstances of drafting regulations. The communications between Mr. Russell and the Government are confined rather to a series of suggestions and modifications of suggestions. The question of the character of the road, e.g., is left unsettled. 20th August, 1874. C. E. Haughton.

Mr. Eeid to Mr. Haughton, —l have revised draft of the regulations for the sale of the block of confiscated lands at the Komakorau Swamp to Mr. Thomas Russell. The regulations are intended to be special, and only applicable to this particular block of land. A fair copy of these should be made, and, if approved by the Government, I presume a copy of them will be sent to Mr. Russell. There are many minor points which will require to be settled, such as the plan and its approval, &c, &c. I have assumed that Mr. Russell is to survey the land at his own cost. 9th October, 1874. W. S. Reid.

Mr. C. E. Haughton to Colonel St. John, —Draft regulations herewith for approval of the Native Minister.—C. E. Haughton.—lsth October, 1874.

[Mr. Masters's draft in roman character, and amendments by Mr. Reid in italic and erasure.] 1. These regulations shall come into operation, and they shall apply only to the block of land hereinafter more particularly mentioned, that is to say, 8. Thooo regulations- ohall apply to a block All that block of confiscated land in the Province of Auckland containing about 80,000 acres, situated in the Parishes of Taupiri, Komakorau, and Kirikiriroa, Banks County, and known as the " Great Swamp," the boundaries whereof are more particularly delineated upon the plan thereof deposited in the office of the Secretary for Crown Lands, and authenticated by the signature of the Honorable the Secretary for Crown Lands. 2. The said land shall, before the same is granted under the authority of these regulations, be accurately surveyed by and at the expense of the purchaser.