G-—2

6

Subdivision No. 1. This subdivision consists of lands over which the Wellington-Manawatu Kailway now runs ; it was voluntarily given to Kemp by the tribe to hold as his own property, and no members of the tribe have made any claim to be in any way interested. Subdivision No. 2. Prior to the Court of 1886, negotiations took place between the Government and Kemp for the sale of a block for the formation of a township. Discussion amongst the members of the tribe resulted in Kemp being authorised to make an offer to sell to the Crown. In June, 1886, Mr. Alexander McDonald, acting on behalf of the Natives, wrote proposing an interview in reference to the sale ; and, on the 29th June, an interview took place between Mr. Lewis, the then Undersecretary for Native Affairs, Major Kemp, and Mr. McDonald. A memorandum of terms upon which Kemp would sell was agreed upon, but no sale took place. It has never been suggested by Kemp that he held this subdivision other than on behalf of the tribe. The terms upon which the tribe authorised the land to be sold were these : — Conditions upon which Major Kemp proposed to sell a block of land to the Government for a township at Horowhenua : —■ (1.) The township to be named " Taitoko." (2.) The acres for the township to be 4,000 acres, of which it is estimated that 1,280 acres will be on the east side of the railway, with two miles frontage to the railway, and the remainder of the land on the west side of the railway, also with two miles frontage. (3.) 100 acres, by estimation, to be reserved (made sacred) as a garden for the said town by the side of the Horowhenua lake ; the trustees for which garden shall be Major Kemp and His Excellency the Governor ; but when there is a Mayor or Council for the said town, then the said Mayor or Council shall be trustees with Major Kemp instead of His Excellency the Governor. (4.) 4 acres shall be reserved (made sacred) as a square for the said town with the same trustees as above mentioned for the garden. (5.) 10 acres shall be reserved (made sacred) as sites for schools or college under the law of New Zealand, the said schools to be for Native and European children. (6.) The remainder of the land, 3,886 of the said town, shall be sold to the government, and the survey of the said town shall be proceeded with forthwith; and when a map has been completed the Government shall return every tenth section to Maories who shall be named by Major Kemp. The price of the land—that is for the 3,886 acres—shall be , but if Major Kemp and the Native Minister cannot agree as to price they shall refer the question to arbitration; one arbitrator to be appointed by the Native Minister, and one by Major Kemp. (7.) The lakes Horowhenua and Papaitonga, and the streams issuing from them to the sea, and a chain around the borders of the lakes shall be reserved so that they may not be drained, for which purpose Major Kemp shall be appointed trustee. (8.) Major Kemp has also divided the owners of Horowhenua into 5 classes. (9.) If these proposals are approved by the Native Minister, Major Kemp will apply to the Native Land Court to subdivide the block in order that the town and each class of owners shall get their portion. And we think, in addition to these terms, that it was distinctly arranged between Kemp and the Natives that the purchase money to be received for this block was to be expended in paying for the subdivisional surveys of the block, the boundary surveys having been paid for by the Crown. It will be noticed that the