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No. 26. Memoranda by the Hon. Mr. Rolleston. I had an interview with Mr. Hesketh upon this matter to-day (15th March, 1882). I told him, after a good deal of discussion, that I did not think Government would be at all likely to acquiesce in any arrangement more advantageous to Mr. Russell than that proposed by Mr. Smith, which he (Mr. Smith) admitted to be in excess of what he considered the justice of the case. I said any arrangement would have to be acquiesced in by the Cabinet and submitted to Parliament, and it was ultimately arranged he should write and ask the Government whether it would be prepared to acquiesce in a settlement of the case in accordance with Mr. Smith's recommendation, but placing the 6,000 acres at the southern end of Waiharakeke East. (I said that was not likely.) If not, what course would they propose for obtaining a settlement ? I said my opinion was that, under the circumstances, it would probably be best for him to petition Parliament. I told him what Mr. Mackay and Dr. Pollen had said on the matter. 15th March, 1882. Wm. Rolleston.

No. 27. Mr. E. Hesketh to the Hon. the Minister of Lands. Auckland, 15th May, 1882. (Telegram.) Re Thomas JRussell's Claims. Referring to my interviews with you in Auckland upon this subject I have the honour to state as follows : Having considered your intimation that my request that the 6,000 acres offered by Mr. Percy Smith could not be offered as at the other end of the block, and having considered the delay which has taken place, and which is likely to take place, I have decided, instead of writing to you asking that my request be complied with, to accept the offer of Mr. Percy Smith of 6,000 acres, in terms of his letters of the 31st October and the 17th November, 1880. In taking this course I regret that the Government does not see its way clear to accede to what my client deems his fair and reasonable claims, especially when we have to pay for the land we receive : the public estate is not, therefore, being given away, but we are to pay the cost of it. However, as I have always informed the Government that I was prepared to deal liberally with the matter, I am determined that no fault shall lie at my client's door, and to terminate matters I accept what the Government offers. Edwin Hesketh, The Hon. W. Rolleston, Wellington. , Solicitor for Thomas Russell.

No. 28. The Hon. the Minister of Lands to Mr. E. Hesketh. (Telegram.) Government Buildings, 16th May, 1882. I will bring your telegram about Mr. Russell's claims before the Cabinet as soon as possible. You understand that the acquiescence of Cabinet and Parliament will have to be obtained. E. Hesketh, Esq., Auckland. Wm. Rolleston.

No. 29. The Hon. the Minister of Lands to Mr. E. Hesketh. (Telegram.) Government Buildings, 19th May, 1882. In reference to my telegram of the 16th May I have now to inform you that I shall be prepared, on the part of the Government, to recommend to Parliament during its present session a settlement of Mr. T. Russell's claim in terms of Mr. Percy Smith's proposals. E. Hesketh, Esq., Solicitor, Auckland. Wm. Rolleston.

No. 30. The Hon. the Minister of Lands to Mr. E. Hesketh. (Telegram.) Government Buildings, 21st August, 1882. Referring to my telegram of the 19th May it has been found that Mr. Russell's claim cannot be dealt with this session owing to the title to the Waiharakeke East Block (out of which the land proposed to be granted is intended to be taken) not being completed in consequence of the difficulty which exists with regard to the purchase of twenty-nine unsold shares in that block. lam sorry, therefore, the matter must stand over for the present. E. Hesketh, Esq., Auckland. Wm. Rolleston,

No. 31. Mr. E. Hesketh to the Hon. the Ministee of Lands. (Telegram.) Auckland, 2nd September, 1882. In re Mr. Russell's claims. Feel justified in asking, as I now do, that Bill be introduced to obtain necessary sanction. The Hon. W. Rolleston, "Wellington. Edwin Hbsketh.