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possibly they would sooner acquiesce in confiscation of land taken in war than in the action of our Courts. These people have at present, so far as I can unders-.tand, no idea of acknowledging our Couris in any way, so that if we acknowledge their position and the rights they claim settlement must simply stop. Another war would be a most sorrowful and pitiful affair, when all women and children would be driven from cultivations into the bush. Our great object ought to be to avert war while, at the same time, we make provision for the extension of settlement. 10.30 a.m. The boys are now striking the wooden bell to call the meeting. A letter has been received from Eewi. A future meeting with him is appointed. The Pboposals op the Goveenhent. Afternoon. The Hauhaus were assembled in front of their church before eleven o'clock, and at that hour Sir George Grey and the Europeans and friendly Natives walked up. They all sat down in a square, having left a portion of space for the Europeans, and a track of about six feet broad and thirty or forty feet in length for the Maori speakers. Tawliiao began at once. He came close to Sir George Grey and said : I wish to speak in reference to this work whicli ended the conversation yesterday. You understood what I wished to say yesterday, and it could not be said; but you wished me to speak out, and Ido so to-day. I know that it will not be agreed to. [Tawhiao then consulted for a few minutes with Te Tuhi, and resumed.] You are the principal European that can be seen. You are at the head of the Government. [Tawhiao here stuck in the ground a stem of fern.] This is a word of mine: That is Maungatawhiri. Let all the Europeans living on this Island go back to that side, and let me be on this side. Let the Europeans have the control of that side, and let me have the control of this side. Let me—that is, the chief of this Island—have the control of this side. This is my word : that, from the mouth of the Maungatawhiri, following away and ascending to Te Ari Bahirahi (Te Heuheu's settlement at Taupo), this is mine. If any Maori wants a road to be opened I will not consent; but look to me. It will be for me to deal with that question. This is a word of mine. If any one should wish to survey any land, if he should apply to the European to survey it, I will not consent; but look to me. The control is with me. My last word is, if any man should lease or sell now, I will not consent; I will not allow it. This is my last word ; look to me. It is for me to decide ; for me alone to decide. Tawhiao then left the cleared space and sat down amongst the people. Sir George Grey said: You know, Tawhiao, that demand has been made repeatedly, but it could not be conceded. 1 have no power to do it; but I can tell you what I can do : You stand in your inana, and the Government will assist you and the chiefs in your district, so that peace and goodwill may alight on the tribes of this Island. It is for you to say whether the people shall sell or lease in your own district. The Government will give you an allowance to assist you ; they will give £500 a year to you, Tawhiao, and will give you also a lump sum to spend, in your own territory. You will have control in your own district. I will give you, Tawhiao, 500 acres of land near Ngaruawahia, so that you may be near the grave of your father. The Government will erect a house at Kawhia for you, so that you can hold the meetings of your Council there. Those lands which have remained unsold in the hands of the Government on the western side of Waikato and Waipa will be returned, Tawhiao, —that is, those lands on the left bank of the River Waikato as far as the mouth; and, in addition to this, I will give allotments in the towns in the Waikato for you and your tribes. In the forthcoming years, I am desirous that you should become wealthy, and these are land's which will bring money. In reference to roads, that is a matter for you and for me to decide. With reference to surveys, I will say this: it is for you to say that lands should be surveyed ;it is for you to say they should not be surveyed. We have carefully considered this matter. lam anxious to see you living in peace on those places in Waikato —on the places that will be given back to you. It is for you to accept these proposals. In reference to the implements which you require for the cultivation and occupation of the land, I will make arrangements with the Government to supply you, so that you may be able to occupy the land properly. These are the only things lam able to do. In regard to the pieces in the township, it is for you and me to go and select them. Patara te TuJd: Your proposals cannot be settled now. I told you yesterday that you would not get your answer to-day. We will think over it. We will reflect carefully over what you have said. Sir George Grey: Tawhiao, you have said you would consider these proposals. Perhaps it would be as well that those proposals should be put in writing and given to you, so that they may be carefully considered by you, and that they may be left hereafter as a sign of my love to you. lam very anxious that these questions should be settled now, because it is a good time for settling these matters. The Europeans are increasing in this Island, and the question will be very difficult to settle hereafter. I say this on account of my love for the Waikato people during the years past, because I should like to leave them, before I die, comfortably settled. In my youth I knew your ancestors and fathers, and I wish, before I die, to leave their descendants living in peace and prosperity. Now, if you would like to go back to that part of Waikato, you and I will conduct the whole tribe back, and we will locate them on the west side of the Waikato. Tawhiao said : My word is this, and I will never forsake the word : The time these matters are arranged is one day. Let the question be settled here at my own place. This is my Parliament. Sir George Grey: lam desirous that this question may be arranged now, in the face of your and my Parliament. Te Ngakau : A new Government has arisen, and therefore these proposals are made. They should be left for the people to consider, even if it takes a long time. Sir George Grey : Do you wish me to put these proposals in writing, and give them to you now, for you to look at and consider ? Te Nyakau thought it would be well that the proposals should be put in writing. Paul Tuliaere asked if they would be able to decide to-day ?