There is some misunderstanding about the reserve at Wharekaka. I never agreed to give it up either to Manihera or to Wi Tutere, and nothing was said to me about Wi Tutere building his house there. Manihera has repeatedly applied to purchase the reserve, but I have always declined to sell it, but promised to take his application into favourable consideration if he succeeded in inducing the Natives to withdraw their claims to Borlase's land. I have, in fact, no power to part with the reserve, except it can be made part of such an arrangement as I proposed in respect of Borlase's homestead. You will, therefore, explain all this to Wi Tutere, and request him not to proceed with his house. Let me have an estimate of the quantity of land in Karaitiana's block as soon as the survey is completed, and sound him as to price.

Mr. Borlase's Land.

I wrote to Manihera last week telling him not to mix himself further with the dispute about Borlase's land. He has, I think, done all he can be called upon to do in the matter. It would be well to caution the Natives that, as they have not paid for the land, £200 of the £440 paid by them to Mr. McLean having been returned, they can only have a claim to a very small portion of the land. I enclose a letter from Romana te Pehi, setting up a claim to Karaitiana's land. Inquire into it.