A.—4

2

Her Majesty's Government feel assured that the Government of the United States will recognise that Mr. Webster's claims have received the fullest consideration both from the New Zealand Land Commission in 1843 and subsequently from the Government of that colony ; and it will be seen that he was treated in respect of them with quite exceptional liberality. The results of these inquiries, which are annexed, shown in a tabular form, to Sir Eobert Stout's memorandum, further prove that in every case except those claims which were withdrawn or disallowed the whole or part of the land claimed was allowed to Mr. Webster, or to those who had bought it from him. In view of the facts disclosed in the accompanying papers, Her Majesty's Government are confident that the Government of the United States will concur with them in the opinion that so much of Mr. Webster's claim as was genuine was allowed to him half a century ago. I am, &c, His Excellency the Hon. T. F. Bayard, &c. Kimberley.

Sub-enclosure. Colonial Office to Foeeign Office. Sib,— Downing Street, 19th July, 1893. With reference to previous correspondence on the subject of Webster's land-claims, I am directed by the Marquis of Bipon to transmit to you, to be laid before the Earl of Bosebery, copy of a despatch from the Governor of New Zealand, transmitting a memorandum from his Ministers, with an opinion by Sir Bobert Stout on the report of the Committee of the Senate of the United States, which formed an enclosure to your letter of the 25th February last. I am at the same time to submit the following observations upon points not touched by Sir Bobert Stout, which will, it is believed, satisfy Lord Bosebery that the Senate and Government of the United States have been grievously deceived, and that Webster is not deserving of the slightest consideration. The numerals indicate the pages of the Committee's report, from which materials for this letter are derived. - 2-. William Webster is an American citizen, who more than fifty years ago failed in business in New Zealand. He is claiming from Her Majesty's Government—(p. 1) " reparation for the seizure and sale ... of large tracts of land in New Zealand to which he had acquired the title, and of which he was in possession before the acquisition of that colony by such (the British) Government in 1840, and for other wrongs." The land is said (p. 2) to have been " about 500,000 acres in all." He is said to have expended in cash, merchandise, and substantial improvements thereon, £15,672, somewhat more than 78,000 dollars. These figures are his own. See his letter to the American Consul, at Sydney (p. 122), where he states that the amount expended in buildings and other improvements from 1835 to 1840 was £9,060, thus leaving £6,612 for the land, which gives an average of about 3|-d. per acre on 500,000 acres. As a matter of fact he did not spend a third part of £6,612,* or buy the twelfth part of 500,000 acres : and two-fifths of what he did buy were bought for two men named Abercrombie and Nagle, who were his partners in one venture, Barrier Island. 3. The amount of reparation, as officially demanded by the United States Government in the enclosure to Mr. Lincoln's note of the 11th October, 1890, is thus made up (pp. 39, 40) exclusive of Barrier Island: — Cases 305, 305a to d, f, g, i to m :— £ 140,760 acres of land, at £1 ... ... ... ... 140,760 200,000 acres (not specified) at 10s. ... ... ... 100,000 3,000 acres of land, case 305h, Tairua, Bay of Plenty, and value of spars taken from the land ... ... ... ... 25,645 266,405 With interest from 30th January, 1840, fifty-three years at 4 per cent, simple interest ... ... ... ... ... 568,160 834,565 Adding for case 305e, Barrier Island, 100,000 acres (p. 10), at, say, £1 = £100,000, interest fifty-three years, £212,000 ... 312,000 Total ... ... £1,146,565 If the rate of interest demanded is higher than 4 per cent., this amount will be proportionately increased. 4. The figures 305 to 305m are the numbers attached to Webster's claims in the list of landclaims sent in to the Commissioners appointed to investigate such claims under the New Zealand Act of 1841, 4 Vict., No. 2. The fourteen claims 305 to 305m were dealt with in 1843 and 1844, and were allowed to the extent of 41,924 acres. No claim was presented in respect of the 200,000 acres (pp. 54-73). 5. In addition to the £1,146,565, Webster also claims (p. 40), without interest, damages for the destruction of his credit and business. No sum is mentioned, nor is any reason given why Eler Majesty's Government should compensate him for his insolvency, nor is any tangible complaint £ s. d. * Page 73.—Cash .. .. .. .. .. .. .. .. 140 10 0 Goods .. .. .. .. .. .. .. .. 1,476 14 0 Page 68.—Cash .. .. .. .. .. .. .. .. 10 0 0 Goods .. .. .. .. .. .. .. .. 570 15 0 Total .. .. .. .. .. £2,197 19 0