No. 68.
Herbert S. Wardell, Esq., R.M., to the Hon. the Native Minister.

I have the honour to report the existence of a difficulty in the arrangement of the boundaries of Ngatuere's reserve at the Waiohine, of which I was not aware when I reported to you on the subject in January last. At that time I was under the impression that Ngatuere was not occupying any portion of the land sold by the Crown, of which Hughes's proposed line of road forms the eastern boundary: in this I find I was in error, arising from the insufficient manner in which Mr. Hughes had marked out the road. By reference to the plan and memorandum I have the honour to enclose, you will understand the present position of the question. The space tinted purple (containing fifteen acres), part of the land sold to Captain Carlyon, has been long in the occupation of Ngatuere and his people as cultivations, &c., and they are very indisposed to give up possession of it, especially as Ngatuere's mother is buried there. The space tinted yellow (twenty acres) is also claimed by Ngatuere as within what he understood to be the boundaries of the reserve, and is partly cultivated. These thirty-five acres are not claimed in addition to the 139 acres to which he is entitled, but as forming part of it.

Under these circumstances I consider I shall be acting within your instructions by employing a portion of the money you placed at my disposal for the settlement of this question, in compensating the Natives for the improvements which they have made on the land. My impression is that the sum required for the purpose will not much exceed £50. I will, however, make the most economical arrangement practicable.