G.—2.

It is true, no doubt, that a time must soon be fixed Avhen the offers and promises of the Crown must be either accepted or refused once for all. No one would pretend that Te Whiti may on his side keep the whole country-side in turmoil and danger as long as he likes, and that the Government on their side must be ready to redeem their promises whenever he chooses. Later on Your Excellency will see, when Ave come to speak of the legislation we advise, that our proposals are to-day, as they were in March, limited by the condition that if the Native people are to have the promises fulfilled, the English settlers must have some guarantee that they too shall have done Avith this long suspense, and may live on their land in security and peace. (5.) The Takoha System and the 5 per Cents. In speaking of the takoha system in our Second Report, Ave said that it was only make-believe, that it demoralized the Natives, and that at Waimate it Avas pure Avaste. We think the time has come to put an end to it. In Major BroAAm's first evidence he said his estimate of the sum he would have to pay for Waimate Plains was £15,000; but in his telegram of 27 May he pointed out, that as he " had authority to give as much as 7s. 6d. an acre, this on Waimate Plains alone would come to £35,000, and to a much larger sum including all the coast to Waitara." And when Ave asked him whether the Government was any better for all the money that had been already paid for the mana of the chiefs beyond Waingongoro, he ansAvered, " No; and that is the reason Avhy I have recommended in my report that takoha should cease." There is an essential difference between continuing the takoha and making full reserves. In the one case it is absolutely necessary for the people to have land to live upon. In the other there can be no obligation to renew an offer of money which Te Whiti has so often rejected Avith contempt. And perhaps the most absurd thing that has been going on upon the coast is, that large amounts of the takoha already paid have simply gone in catering for the Parihaka feasts. To some extent, however, the good faith of the Crown is pledged. Mr. Sheehan tivice distinctly promised that, in addition to the reserves, the chiefs , should " receive money as takoha to assist them in fencing their reserves and otherAvise promoting their social improvement." And as regards Manaia, Avho has received none yet, there is a clear engagement to pay it to him. Major BroAvn told us: "Manaia asked me one day if I AA rould pay him any money. I told him ' Yes,' and that he could have £100 at once if he liked. I then took him over to the bank at HaAvera, and put the vouchers before him for his signature, Avith the money in notes. This Avas in presence of the banker. He declined to take the money, saying lie Avas satisfied Avith having seen it. Some months afterwards he asked me if that money AA ras still available, and I said it was. He then asked if it could be increased. I said, ' Yes, you can have £1,000 if you like: will you take it ? ' He declined : he said he Avas satisfied with knowing he could have it." We asked, " Have you any doubt in your mind that he understands he is to get a considerable sum ?—No." It avqulc! be bad faith now to repudiate the payment to this chief: nor are Ave saying that in every case the payment of gratuities can be dispensed with. But the system, and the rates offered by Sir Donald McLean in 1876, should cease. Wit! i regard to the " reservation of 5 per cent, in value of every rural and suburban block for the benefit of the Natives Avho were residing in the district on the 30 June 1867 and have since remained loyal," which Avas promised under the Orders in Council of 26 November 1867, 13 April 1870, and 11 May 1871, it has always been a dead letter : Ave can only find one case where the letter of the Order was obeyed. But its spirit has been more than carried out. Much more than " 5 per cent, in value " of all the rural and suburban land that either has been or can possibly be offered for sale, will have been set apart Avhen the reserves Ave recommend are finally made. It Avould bo going very far beyond Avhat could be with any reason claimed, to let this engagement apply to any new land opened for settlement: but it may be necessary that the Orders in Council should be formally xepealed.

Major Brown, Evid. Q. 1042.

Ibid. Evid. Q. 1069.

Hon.Mr.Sheehan. Minute, 14 April 1879, PP C. 4.

Major Brown, Evid. Q. 1054.

Proclamations and Orders in Council, Appendix C, No. 4

LIV