No. 4.
Lieut-Colonel McDonnell to Mr. H. T' Clarke.

I have the honor to report, for the information of the Government, that, according to instructions, I proceeded North with Mr. Brisseuden from Auckland to negotiate with him for the purchase of land from the natives.

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On arriving North, we succeeded in acquiring several new blocks, and continued the negotiating of those which I believe Mr. Brissenden has already reported as having been partly acquired.

On the 16th ultimo I was unfortunately taken very ill, which prevented ray continuing our work. It had been thought absolutely necessary by Mr. Brissenden and myself that he should proceed to Auckland, and to Wellington if necessary, to confer with Sir Donald McLean on subjects relating to the lands we are dealing for.

During his absence, and on the 25th ultimo; I partially recovered, and resumed my duty. The following is a report of what has since been done:—

On the 25th September, I went to see a block named. ".Waihoanga," near the Omapere Lake, and purchased it for Is. per acre. It has since been surveyed, and contains about 3,000 acres.

On the 26th September, I rode to Mangakahia, on my way to Kaihu, on the Wairoa, to meet the chief Parore by a former engagement about a tract of country offered me some months ago. The Man-gakahia natives had assembled to meet me, but I deferred much I had to say until I returned. On the 28th September, I started for Kaihu with several of the Mangakahia chiefs, camped in the forest,,, and on the evening of the 29th arrived at our destination. As Parore happened to be at that settlement, we met the same night, and after a few hours' talk I succeeded in arranging for the purchase of." a large block of fine country, nearly all forest. Some reserves are to be allowed, but not of any great-extent. The price I had some difficulty in arranging—2s. 6d., the price of Pekapekarau and other blocks at Mangakahia, being mentioned and asked for. However, as I had hinted to the Mangakahia natives that I intended to request them to reduce this price per acre on my return, I told Parore that I could not give this sum. I showed him the advantage that would be derived when these lands were occupied by Europeans, using arguments of my own for that object. Eventually, the price was fixed at Is. 3d. an acre; but Wharepapa, of Mangakahia, having succeeded in getting a sort of agency from the owners in his hands, has to be paid £200. I do not doubt being able to effect a very great saving on this before the purchase is completed. I merely mention how this stands now, and which I have agreed to conditionally. The following morning I left Kaihu for Mangakahia, and took the opportunity of having as good a look at the country as circumstances permitted; but I did not feel well enough to do more. We reached Mangakahia on the evening, of the 1st October, and proceeded at once to hold a meeting, which lasted till past midnight, and the following is the result of what I have effected:—

The blocks of land formerly arranged for, Pekapekarau, Wharekahakaha, the survey of which has been completed, and Opoteke, now under survey, which I estimated at 5,000 acres, but which will be now over 12,000, were agreed to be purchased at the rate of 2s. 6d. per acre. The arrangement I have now made with all the principal men, excepting one who will do what I tell him, is that the money they have already received on these blocks, about, I think, £750, is to go at the former rate of 2s. 6d. an acre; but the remaining portion of the land, amounting in round numbers to 13,000 acres, is reduced to from 2s. 6d. to Is 3d an acre, effecting a saving of about £800 to the country, less £50 I made presents of. I arranged with certain of the influential men about this before I met Parore, otherwise neither himself nor his people would have taken less than 2s. 6d. for their land. "After this had been settled, the boundaries of Parore's block were added largely to by the Mangakahia people, forming the whole into one large block, in which there are to be but few reserves. The area is extremely difficult to estimate, it being mostly forest, but the whole of Tutamoe and Kairara is included. I think that if the boundaries named are adhered to "there will be about 75,000 acres, perhaps more. The soil is for the most part fair, but in many places equal to the Victoria Valley in quality. The forests of kauri are of the best—many trees I passed running from 70 to 90 feet without a branch, and from 5 feet to 7 feet in diameter, and to be got to water without much difficulty, the ground sloping away to creeks that in freshets would float a large vessel, and emptying themselves into the Mangakahia River.

On the 2nd October I left for Ohaeawai, and on the 3rd I rode to Te Taheke, where I procured a boat and pulled to the Hokianga Heads. The next morning I hired a horse and reached Whangape, arriving at Ahipara the following day. A large number of natives were collected here to confer with Mr. Nelson. I handed that officer over a block named "Epakauri," that had been partially negotiated for by Mr Brissenden and myself during a former trip on the coast. Here I arranged for the purchase of a block named "Te Tauroa," estimated to contain about 13,000 or 14,000 acres; price per acre to-be 4d. There is little good land in it.

An extremely good piece of land was then brought forward, that I had vainly endeavoured to get before when negotiating for the Victoria Valley and other blocks. £1 was demanded, and then the price fell to 10s. an acre. This block is named "Orowhana." There is much kauri on it, tall,, straight, and available, and the soil is very good. I have arranged the price at 3s. an acre, and there are some thousands of acres. I returned the following day to Whangape, and reached Herd's Point on the 9th instant, where I met Mr. Brissenden, who had just returned from Auckland, business with the natives detaining him there the following day." I proceeded to Ohaeawai, hearing some chiefs I had written to had arrived there to see me from Whangaroa. On my way I called at Otawa, by the wish of Ngeitu and Ngateue tribes, and purchased a large slice of land adjoining the Waoku; price, 1s. 5d. an acre.

I reached Ohaeawai the same evening, and met the Whangaroa chiefs on Monday, the 12th inst.. I paid them a deposit of £50 on their blocks of land in their district, acreage and price partially arranged for; but I am to meet them at Whangaroa the next time I go North.

The next day, 13th, I purchased a block near the Waitaroto named "Okaka," about 5,000 acres more or less, price to be 1s. 3d.; also another block, acreage not known, price to be fixed in future, but survey is to commence at once.

When my health is restored I shall proceed North again, as there is yet much work to be completed in all the lands I have mentioned about, for there is great jealousy existing, and the greed for page 41money is unbounded, leading the natives to all sorts of tricks and devices, to obtain advances. I have been constantly at work day and night, sometimes working till daylight to accomplish our object, with the exception of the time I was laid up.