In forwarding the enclosed sketch of the different blocks, the negotiation for which I submit for the sanction of His Excellency the Governor, together with the requisition for the sums necessary to bring the negotiations to a successful issue, I have the honor to remark, as follows, for the consideration of His Excellency.

Without reference to the difficulties which always arise from the different claimants opposing each other, there is a general feeling prevalent amongst the Maoris that the sale of land is anything but a profitable transaction for them, and this has greatly increased since some Europeans have leased or attempted to lease runs in this district.

There is also much to contend with from the indirect influence of the Ngaruawahia (Maori King) party.

The system of handing over the land to be held in trust by the Ngaruawahia Runanga has obtained greatly of late in my district. In one or two instances I have succeeded in preventing a tract of land from being handed over. As matters are at present, once the land is in the hands of the Ngaruawahia party, there is not the slightest probability of purchasing.

I would call the attention of the Government to the necessity of acquiring all the land they can in this district as soon as possible. Every offer of land with a good title increases the probability of further purchases, if accepted, whereas, if refused on account of small extent, such land may never be offered again, and may perhaps interfere with the successful negotiation for purchase of the adjacent land when offered for sale at some future time.

I do not advocate the purchase of every small patch of land that a Native may wish to sell, but as I have frequently had occasion to state, there are many portions of this district that must be offered in small blocks.

Waitoa River.

Should the Government approve of the land offered on the west bank of the Waitoa, I anticipate several offers of small blocks on the east bank of that stream, which will lead, I have every reason to believe, to the purchase of upwards of Twenty thousand acres, between the Waitoa and Waihou.

I consider it highly conducive to a speedy and successful negotiation that the purchase money should be forthcoming, when the tribe or claimants, owning a piece of land, have pointed out the boundaries to the District Commissioner; for instance, could the purchase-money have been paid a few days ago for two of the blocks shown on the sketch, the deeds would have been signed and forwarded without further negotiation; and, though, in these two instances, I do not anticipate any fresh difficulties from the delay, yet in some cases it might seriously interfere with the negotiation.

The whole of the upper Waitoa land is excellent and well timbered on the banks of the stream.

The only difficulty I anticipate is that of Paora Te Putu refusing to cede his claim. This, however, will only diminish the size of the block on the west bank.

With reference to the consolidation of the Piako Block, the absence of one of the claimants has alone interfered with the settlement of the Mangakahika and Mangahoumia Block; a small portion will remain for which a separate deed can be drawn out.

I would strongly recommend the Government not to press the cession of the Maukoro Reserve at present; there is a highly eligible site for a township'a little to the north of the Pa of Maukoro; and any attempt to force a removal of the Natives, at present would be fatal to other purchases in the vicinity which are highly desirable. Out of the Seven hundred acres forming the Maukoro Reserve, I can at any time obtain the cession of Four hundred acres, when, I believe, the Natives would move of their own free will in about a year, but I have purposely kept back the offer of the Four hundred acres until the other purchases are effected, amongst the rest, the 8,000 acres, or the greater part of it, lying between Hangawera and the Mangawera stream.