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no such power was given to it by Parliament over Native lands ; that the company would therefore be unable to construct the easterly portion of the line unless the Natives rendered assistance ; that this assistance might be in one or more of three forms : (1) To cede gratuitously a portion of their tribal estate as an endowment for the railway; (2) to convey to the company a larger parcel of land, which the company, after completion of the railway, would sell, dividing the profits; (3) to take shares in the company, paying for them with land. The tribes very readily promised the required aid, some preferring one mode and some another, and the directors have reason to believe that the aid thus tendered will be sufficient to enable it to raise the capital required, and will commercially justify it in making the line. The directors now respectfully request the co-operation of the Government and its assistance under the powers conferred upon it by "The Thermal-Springs Districts Act, 1881." After forbidding acquisition of land by any private person in any district proclaimed under the Act, it provides that the Governor "may make arrangements with the Native proprietors for rendering available the territory of the district for settlement by Europeans, and he may treat for the gratuitous cession, or for the purchase, or for the lease of any land which he may deem necessary for the purposes of the Act, and may enter into contracts which he may think fit." With the exception of a narrow strip all the land referred to is included in a Proclamation issued under this Act. The preamble of the Act clearly sets forth the intentions of the Legislature, and the reasons which actuate them in passing it. It states that it would be " advantageous to the colony, and beneficial to the Maori owners of the land in which natural mineral springs and thermal waters exist, that such localities should be open to colonization and made available for settlement." It appears to the directors that it would be "advantageous to the colony," and that it would be " beneficial to the Maori owners of the land " (an opinion in which the latter completely concur), that the proposed railway should be made, and they know of no mode more conducive to "the opening-up of the country to colonization, and making it available for settlement." The directors are advised that, if the Government are of opinion that the formation of railway communication with Auckland will assist " in rendering the territory of the district available for settlement by Europeans," it is ancillary to the purposes of the Act, and the powers before stated may be exercised by the Governor. As the Native owners are willing and anxious to co-operate with the company in the direction indicated, it is anticipated that the Government will have no difficulty, and will experience no delays in making arrangements and entering into contracts authorized by the Act. The methods which may be subsequently adopted for executing the trusts thus to be created by the Native owners will present no difficulty, and may be left_for future arrangement, thus giving the Government the fullest power of fixing the terms and conditions on which the lands for this public object may be given. The directors therefore venture to hope that the Government will assist the company and the Native owners in carrying out their now joint enterprise, respecting the public importance of which they need not enlarge. J. Logan Campbell, Auckland, 26th February, 1883. Chairman.

No. 4. Dr. J. Logan Campbell to the Hon. Mr. Bryce. Sic,— Auckland, 26th February, 1883. Referring to the interview which the directors of the Rotorua Railway. Company had the honour of holding with you and the Hon. Mr. Rolleston this morning, it has occurred to.me that a legal difficulty will obstruct the accomplishment of the object which the Government and the company have in common, if the land in the Thermal-Springs Districts is purchased by the Government under the Land Purchase Proclamations. It would then apparently be out of the power of the Government to deal with them in any manner other than that directed by the Waste Lands Act. " The Thermal-Springs Districts Act, 1881," affords the only legal method of acquiring land for the assistance of the railway beyond the endowments sanctioned by the Railways Construction Act. You will pardon me for pointing out to you a difficulty to be avoided. I have, &c, The Hon. J. Bryce, Auckland. J. Logan Campbell.

No. 5. The Hon. Mr. Bryce to Dr. J. Logan Campbell. Sic, — Ohinemutu, Ist March, 1883. I have the honour to acknowledge the receipt of your letter of the 26th instant, pointing out that land acquired by purchase on the part of the Government within the Thermal-Springs District can only be dealt with under the Land Act and the Railways Construction Act. In reply, I may state that this is undoubtedly so; but I have to add that the provisions of the latter Act are extremely liberal in the possible assistance s© be rendered to a railway company: moreover, land, after it has been acquired by Government, might easily be so disposed of as to make it subject to the ratin> powers of the Railways Construction Act. With respect to acquiring land from the Native owners for the assistance of the railway company, I have to remark that in no case can this be made a primary object on the part of the Government. The objects of the Government in making an agreement with Native owners of land under the Thermal Springs Act will be to preserve the