No. 10.
Mr. Commissioner G. W. D. Hay to the Chief Commissioner.

I have the honor to state for the information of the Government, that I reached Wai Aro, Te Moananui's Settlement, on the 2nd instant. Te Moananui and his party have offered to cede their land on the west bank of the Waitoa. I can form no idea of the extent until I have seen the Ngati-werewere, at Pakarao, who own the adjoining land. I consider it highly advisable that the Government should avail themselves of this offer, as the sale of land in that part of the country will inevitably lead to other purchases. Te Moananui, who took the most active part in stopping the sale of land in the Waihou, on account of the advance made to Ngatae, is now ready to sell. Te Hira Kake will withdraw his opposition, and the Natives residing in the Waihou have only been deterred from selling by their fear of the Ngatitamatera.

Amongst the Ngatimaru there are a good many who are anxious to sell their claims, but they are opposed by the others, who maintain that no individual claims shall be sold without the consent of the whole tribe; not that the tribe have any right to the land, but because such sale may compel them eventually to sell the adjoining claims.

Under the present system of opposition to sale of land, especially amongst the Ngatimaru, I would recommend the acquisition of all claims offered to the Government, especially with river frontages to the Waihou.

As long as the claim is not too small, the adjoining claims would soon be offered for sale, and I think in a very short time a frontage of from ten to fifteen miles would be acquired on the west bank of the Waihou, with an average depth of two miles. There is not the slightest possibility of any large block being offered for sale near the mouth of the Waihou, and those Natives who are now willing to sell their claims, would in all probability make the strongest opposition were land offered for sale there, at any future time, unless their right to sell is recognized.

The Ngatitamatera are to meet in the Waihou, about the middle of December, when they will enter into negotiations for land in that part of the country. In the Waihou, much time necessarily elapses before anything can be settled finally about the land, the claimants living so far apart; and in the present instance, the sale of land having been altogether put a stop to by general consent, they must all re-assemble to remove the restriction.

I expect some of the Ngatipaoa in a few days, when I hope I may be enabled to take further steps towards consolidating the Piako Block.

Taraia has again spoken of some land he wishes to cede on the east bank of the Wairoa. I have arranged to go there with him, on my return to Auckland.