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No. 20. Messrs. Gbant and Fosteb to the Hon. the Peemiee. Sic,— Healing, Ulceby, Lincolnshire, 18th November, 1880. I have the honour to enclose copy of the several telegraphic messages that have passed between us, and to explain that, in asking you to get Mr. Eussell's claim removed from that part of the Aroha Block which the Government have agreed to give us, we were urged by practical difficulties which impeded, and in fact prevented, our selling the land here. Mr. Eussell has not made any difficulty, and indeed has recognized the greatly-increased value his adjoining lands would probably acquire from our settlement; but the fact has become generally known in England that this Aroha land now promised to us had been allotted by previous New Zealand Governments first to Mr. Eussell, then to Mr. Broomhall; and that in both cases different Governments had declined to ratify the promises made, and had offered or paid compensation to the claimants. These facts have been studiously spread by opponents to our plans, and they have prevailed sufficiently to prevent purchasers taking up the lands from us. Under these circumstances we were naturally anxious to have the matter cleared up as much as possible before we pressed our immediate friends to accept our assurance that the title would be right. Moreover we had in view a proposal that we should colonize Mr. Eussell's land in the Thames District, under which we should have had at our disposal for settlement about 40,000 acres, instead of 17,000. We now understand the position taken by the Government to be that, as our agent Captain Steele has made an arrangement with your Government, we are bound by that arrangement whether Mr. Eussell's claim is withdrawn or not. We have not heard from Captain Steele, but shortly expect to have letters. Meanwhile we wait receipt of information from him. I have, &0., Saml. Geant, The Hon. the Premier, Wellington, New Zealand. For self and J. S. Foster.

No. 21. Mr. E. Hesketh to the Hon the Ministee of Lands. Bo Thomas Bussell's Claims to Land in the Thames District. Sib, — Auckland, 25th November, 1880. I have the honour to address you again upon this subject, and this for the following reasons: As you are doubtless aware, I, on Mr. Eussell's behalf, have had several interviews with Mr. Percy Smith, to whom I was referred by you, for the purpose of trying to arrive at some definite settlement of this matter. You are, no doubt, aware that Mr. Percy Smith, on the 31st October, made a proposal to me in the following terms : " 31st October, 1880.— -Be Mr. T. Russell's claim to Te Aroha. In accordance with my promise I have reconsidered the grounds on which I based my proposals for settling this matter, and can only say that I come to the same conclusion as at first, that such proposal is a fair method of adjusting the difficulty. That, in fact, I should not feel myself justified in recommending to Government anything else. I will briefly state what that proposal amounts to : "1. I consider Mr. T. Eussell entitled to a portion of Te Aroha, bounded on the North by the production of the northern boundary of Waihekau No. 2 to the Waihou, including an area of about 2,940 acres. 2. That, in order to clear Te Aroha of this claim, I propose to recommend to Government to exchange this 2,940 acres for 4,000 acres at the south end of Waiharakeke East, on Mr. Eussell repaying to Government the price paid by them to the Natives (about 6s. per acre, not Bs., as I said yesterday), but such price not to exceed 6s. per acre. Crown grant to issue on completion of title. 3. That, on completion of title to Waiharakeke West, Mr. Eussell to receive a Crown grant for it on repayment of price paid by Government. —S. Peboy Smith." To this letter I replied on the Ist November to the effect that, being satisfied that Mr. Eussell was entitled to more than 2,940 acres, as stated by Mr. Smith, I could not of my own motion accept the offer of 4,000 acres in Waiharakeke East, and that, as far as I could see, Mr. Smith was wrongly informed as to the boundaries of the piece of land which Mr. Eussell was to get, and that it would be necessary for me to cable Mr. Eussell before I could reply. Having received a reply I was obliged to write declining the proposal made by Mr. Smith. On the 17th November I received another letter from Mr. Smith, in which he proposed to increase the offer from 4,000 to 6,000 acres in Waiharakeke East. This offer, as well as the first one, has been fully cabled to Mr. Eussell, who replies that he cannot accept it, there being some serious misapprehension on the part of the Government as to the nature and extent of his claim; but he desires me to submit the following proposal to the Government, in the hope that it may be accepted, and the matter advanced towards a settlement. The proposal is that the whole matter be referred to the sole arbitration of Sir Dillon Bell, who shall take whatever evidence he can in the colony, and take Mr. Eussell's evidence in London, the Government binding itself to give effect to the award, and that, pending the award, Waiharakeke East not to be disposed of by the Government. Ido trust that this may receive careful consideration, and that it may be the means of disposing of this matter, as to which I cannot but feel that the whole facts in connection with it have not been fully and rightly understood. I have, &c, The Hon. the Minister of Lands, Wellington. Edwin Hesketh.

No. 22. The Chief Surveyoe, Auckland, to the Stjkveyob-Genebal. Sib, — Survey Office, Auckland, 6th December, 1880. I have the honour, in compliance with your memorandum, to report the result of my investigation into Mr. T. Bussell's claim to Te Aroha.