[New South Wales, Vol. 179.

J. C. Littleton to R. Horton, Secretary of State.

Mr. Lyall, who is our active New Zealander, wishes to see you, and will call on you early to-morrow morning at the Colonial Office, to submit to you a proposition relative to establishing a fort and small complement of men at New Zealand. Our hope of obtaining from Gov. a grant of an exclusive privilege being now destroyed by a refusal on the part of Huskisson, we are desirous of ascertaining whether we can expect any encouragement from your Department. I confess for my own part that in the present state of the money market in England I see no hope of success for our project. An exclusive privilege might have carried us through our difficulties; but in my judgment nothing else can, and yet our project was of real national importance.