[Enclosure No. 7.]
Captain W. Hobson To The Under-Secretary Of State, Colonial Department.

I have the honor to transmit, for the information and approval of the Right Honourable the Marquis of Normanby, an estimate of the expenses for the first establishment of a colony in New Zealand.

The estimate for the house is offered by Mr. Manning, builder, No. 25, Holborn, who has constructed and sent abroad many houses for settlers in the new colonies. Judging by the rude and imperfect plan he has shown me, he will furnish a very

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good temporary residence for the Lieutenant-Governor, which may be sold and removed when a more permanent one can be erected.

I have estimated the costs of the presents for the natives at one thousand pounds. I hope that sum will not be considered large, bearing in mind the fact that no negociation can be carried on with them unless propitiated by a present.

The estimate for furniture and stationery are the same in amount as was supplied to Captain Hindmarsh when proceeding to South Australia.