No. 12.
Lieutenant-Governor Eyre to His Excellency Governor Grey.

Sir,—

In my Despatch No. 89, of the 5th September, 1848, I informed your Excellency of the steps I had taken for the purpose of completing those details of arrangement connected with the Middle Island Purchase which had been left unaccomplished by Mr. Kemp, and I at the same time forwarded to your Excellency a copy of the instructions given to Mr. Mantell, the gentleman nominated for the above-mentioned purpose, for his guidance.

(2.)	I have now the honor to acquaint your Excellency that Mr. Mantell has accomplished his mission, and to transmit copies of his various letters and reports relating thereto, together with a copy of the letter I addressed to the New Zealand Company's Principal Agent, in transmitting to him copies of Mr. W. Mantell's reports. From those reports your Excellency will gather that Mr. Mantell met with considerable difficulty in consequence of the incomplete manner in which Mr. Kemp's arrangements relative to the purchase were made, and with some opposition from the two chiefs who under those arrangements had been the recipients of the whole of the first instalment, but who, under the more equitable plan adopted by Mr. Mantell, would only receive such amounts as they were respectively entitled to from a consideration of their rank and claims, the number of Natives within the block purchased whom they represented, and other similar points bearing upon the equity of the case.
(3.)	After Mr. Mantell had announced to the Natives the plan of distribution he proposed, and had informed them that he was prepared to pay over the money, the two chiefs above referred to, Tikao and Taiaroa, with some of their followers, objected to receive the proportion allotted to them, and came up to Wellington for the purpose of seeing me on the subject. This interview took place in the presence of Mr. Kemp (who acted as interpreter), of Mr. Mantell, and of the New Zealand Company's Principal Agent, besides some of the Natives who are favourable to Mr. Mantell's plan, and among them a young chief named Topi, of higher rank than Taiaroa, who had been altogether overlooked in the payment of the first instalment, but whose claims and rights were fully acknowledged by all the Natives, and among the rest by Taiaroa and Tikao. Upon a full inquiry into the cause of dissatisfaction by the two latter, I found them so frivolous and so unsupported by any real grounds, that I at once decided upon sanctioning the arrangements made by Mr. Mantell: first, because the Natives who were opposed to it admitted that it was just; and secondly, because it was quite within the terms of the arrangement made by Mr. Kemp to the effect that the subsequent instalments after the first should be apportioned by the Government so as to meet the claims of all who, upon further inquiry, and upon a further knowledge of their respective rights and interests, should appear to be justly entitled to consideration. The reasons for this decision are more fully given in the letter of the Colonial Secretary to Mr. Mantell dated 13th February, 1849, included among the accompanying correspondence.
(4.)	The opportunity of H.M.S. "Acheron" going to the vicinity of Akaroa enabled me again to conclude the payments; and although I have not since had an opportunity of receiving any communication direct from Mr. Mantell, I have heard incidentally, from a gentleman who was present at the payments, that no difficulty had occurred, and that all the Natives, including the objecting ones, had acquiesced in the decision, and had received their respective proportions. I may add that it is not improbable that Tikao and Taiaroa only asked to have the payment made in Wellington but of course I could not consent, as by far the larger number of Natives were waiting for its distribution at Akaroa.