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two watermills in progress of erection. One of
\nthem the property of the Catholic Natives is now
\nnearly completed, the cost of which I am told will
\nnot be less than £800. These two mills completed,
\nthey will be, in point of comfort and actual wealth,
\nbetter off than any Natives I know, and the consumption of flour much more general than it is
\nnow. They have also near 100 head of cattle, well
\nselected, and in good condition.

\nOtaki was the principal residence of the late
\nchief Te Rauparaha. His son Thompson inherits
\nhis father’s property, rank, &c. From the great
\nchange, however, that has taken place within the
\nlast few years with regard to Native rights of chieftainship, it is not likely that he can have either the
\npower or influence which his late father possessed.
\nTe Rauparaha was always considered to be a
\ntreacherous chief by his own people, often resulting
\nin the sacrifice of his own allies, who at one time
\naccompanied him to distant parts of the Island for
\nthe purpose of taking possession of some fertile
\nspots of country. To enter into a detail of the
\nmanner in which he conducted these campaigns,
\n(of which he was generally the leader and promoter)
\nwould not be within the scope of this letter—
\nsuffice it, however, to say, that for depth of intrigue
\nand cunning he stood unrivalled (even to a proverb)
\namong the old men of his own time; nor is it
\nlikely that any of his family or connections which
\nextend from nearly one end of the Island to the
\nother, will ever produce another, whose history,
\nand whose sanguinary deeds, (deeply stained as
\nthey are in the blood of many of his innocent coun-
\ntrymen) stand known and acknowledged.

\nI alluded in my Report No. 1, to the probability
\nthat E Puni would visit Taranaki this summer with
\na large party of followers, calling at the principal
\nstations on his way up. The Ngatiawa and Ngati-
\nraukawa have been enemies for many years. On
\nthis occasion Te Puni met with the most friendly
\nreception at Otaki, was invited to the new village,
\nand treated with the usual Native hospitality. I
\nbelieve this to be the first time for now near ten
\nyears since E Puni ventured into Te Rauparaha’s
\ncamp, and shows that feelings of animosity are fast
\ndisappearing before the spread of civilization, and
\nintercourse with the Europeans.

\nThere are near 150 Day Schools: some of them
\nare beginning to read the English language—some
\nfew attempt to speak it, and with considerable
\nsuccess.

\nThe Ngatiraukawa, who came originally from
\nMaungatautari, north of Taranaki, near Kawhia, is the most powerful tribe in Cook’s Straits.
\nThey number about 1200 fighting men, including a
\nsection of the Ngatitoa, and inhabit all that country
\nlying between Kukutauaki (a small stream 2 miles
\nnorth of Waikanae) and the main river of Rangi-
\ntikei—intermixed with the Ngatiraukawa are a few
\nremnants of the Ngatikahuhunu, some of whom
\nwere part of the original possessors of the soil,
\nwhile some have more recently migrated from the
\ncountry in the neighbourhood of Hawke’s Bay,
\nwhich they left in consequence of jealousies and
\nfeuds connected with the distribution of land, and
\nultimately with the sanction of the Ngatiraukawa,
\nwere permitted to establish themselves on the banks
\nof the Manawatu, where many of them still remain.
\nPart of them propose returning to Hawke’s Bay in
\nthe autumn. The Ngatiraukawa, as will be seen
\nby the Returns, are a numerous body—they are
\nindustrious, brave, and very much united. In illus-
\ntration of this I might mention that at the time of
\nTe Rauparaha’s seizure, every man capable of bearing
\narms, was up and ready to unite in the common
\ncause, and to seek out the best means of revenging
\nthe old man’s death, (for such it was deemed to be
\naccording to Native custom, on account of the degra-
\ndation his imprisonment entailed upon his succes-
\nsors, and those of his nearer relations) and from all
\nI have since heard, that but for the timely inter-
\nference of the better disposed young men, very seri-
\nous consequences must have resulted therefrom,
\nespecially to the outsettlers who were in a great
\nmeasure unprotected.

\nThe soil in the neighbourhood of Otaki is good
\nand the crops look well, but the situation of the
\nvillage inclined to be somewhat damp. The Natives
\ngive this account of it themselves. The claim of
\nthe Ngatiraukawa to the whole of the district before
\nmentioned, is, I believe, undisputed, and, since
\nthe call for flax, each sub tribe sets a value upon
\ntheir several districts which probably they never did
\nbefore; the whole of that country abounds in
\nflax. There are a few settlers in the neighbour-
\nhood of Otaki. Of the nature of their claims I am
\nnot aware, but I believe most of them are living
\nthere with the consent of the Natives, and appear
\nto be on good terms with each other. Total Native
\npopulation, 664.

\n## 24th Settlement.—“Waikanae and Ohau.”

\nDistant from Otaki about 5 miles, is inhabited
\nby 2 sub divisions of the Ngatiraukawa. Their
\nprincipal occupation is cleaning flax, and a rope
\nwalk has been established there for nearly three
\nyears. The Waikanae Pa is in tolerably good
\norder, but that of Ohau is in a wretched state, and
\nunhealthy. Both villages are on the banks of two
\nrivers of that name. The cultivations, which are
\nsome little distance inland, are in excellent order,
\nand a small village which has been laid out by Mr.
\nWilliams, upon which they have already made a
\ncommencement immediately in the vicinity of the
\nplantation grounds, will tend very much to their
\ncomfort and general health—the flax also being close
\nat hand. Their wheat crops turned out very well
\nthis year, and many of these Natives, who are
\nCatholics, having an interest in the mill at Otaki,
\nseem to look forward with great anxiety to the time
\nwhen they may take their grain to the mill free of
\nexpense. The road from Ohau to Otaki is good,
\nand a dray or cart may pass without much difficulty.
\nThey have a Day School which is well attended.
\nPopulation of Waikanae, 229—Ohau, 235.—Total
\nNative population, 464.

\n## 25th Settlement.—“Horowhenua.”

\nDistant from Ohau about 5 miles, is situated on
\nthe border of a lake of that name. The inhabitants
\nare a remnant of the original occupants of the soil
\ncalled “Te Muaupoko,” and have been allowed to
\nremain there ever since the country was taken pos-
\nsession of by the Ngatiraukawas. Horowhenua
\nwas the favourite residence of the late Te Whatanui,
\none of the Principal Chiefs of the “Ngatiraukawa;”
\nand to him the individuals composing the tribe of
\nMuaupoko in a great measure owe their existence.
\nThe lake abounds with eels, and the scenery around
\nit is very picturesque and beautiful. It is also in-
\nteresting in skirting the lake to see the remains of
\nthe old Pas, and to hear the accounts given of the
\nmanner in which they were attacked and destroyed
\nby Te Rauparaha—while it is no less gratifying to
\nfind among the survivors that sense of security
\nwhich they frankly acknowledge they owe to the
\ninfluence and good example of the white men. A
\ndaily school is kept here by an intelligent young
\nman and the people generally are employed in pre-
\nparing flax for sale. Population, 122.

\n## 26th Settlement.—“Poroutawao.”

\nDistant about 7 miles from Horowhenua, is as
\nwell as Horowhenua situated some short distance