[Enclosure.]

Crown Lands Office,
Auckland, 6th March, 1862.

SIR,—A communication has been addressed to his Excellency’s Government by his Honor the Superintendent of Otago, desiring to be informed of the course which it is intended to pursue with reference to the granting of leases of auriferous lands within the limits of proclaimed gold fields.

The leasing powers under the 7th section of the Gold Fields Act, cannot be delegated to the Superintendent; but it is desirable to avoid, as much as possible, delay in giving practical effect to this leasing power.

You will therefore proceed at once to arrange a plan, in concert with his Honor the Superintendent, for expediting the granting of leases of lands under the Gold Fields Acts, and for authorising the immediate occupation of such land by parties whose applications may be approved by his Honor the Superintendent.

You will arrange with his Honor the rent to be charged and the terms of leasing. I transmit to you a copy of the Scale of Rents adopted on the Nelson gold fields, which may serve you as a guide.

It will be best that the leases should be prepared under your direction, and transmitted for his Excellency’s signature: you will be good enough, therefore, to prepare and transmit them accordingly, taking care that accurate plans are placed on them. I transmit a form of lease adopted for the Nelson gold fields.

You will be good enough to advertise the notice of intention to grant the leases in at least one local newspaper, and you will yourself sign such notice as Commissioner of Crown Lands, transmitting the same to this office for publication in the Gazette, in accordance with the 7th section of the Act of 1858. I enclose a copy of a Gazette containing a form of such notice.

A beneficial occupation of the land being granted, under the license to enter upon possession, which you will issue, the rent may be charged at once. These licenses should be issued immediately upon approval of the application, pending the execution of the leases.

Generally, you will make such arrangements, in concert with the Superintendent, for expediting the granting of licenses and the occupation of lands leased, as may appear to you to be expedient.

I have, &c.,
(Signed) HENRY SEWELL,
(In the absence of Mr. Ward.)
To the Commissioner of Crown Lands, &c., &c., Dunedin.

His Honor the Superintendent, to the Hon. the Colonial Secretary.

Superintendent’s Office,
Dunedin, 20th March, 1862.

SIR,—I have the honor to acknowledge the receipt of your letter of the 5th inst., No. 241, with its annexments, intimating to me that His Excellency the Governor had been advised not to accede to my request that a certain portion of Run No. 54—of which Mr. John Cargill is the licensee—should be declared a Hundred.

I would content myself with this simple acknowledgment of your letter under reply, were it not that there are expressions in it which appear to indicate the existence of an impression on the minds of His Excellency’s advisers, that the recommendation which I had the honor to submit was designed to defeat the law, and to deny to the licensee of the run in question, the compensation to which he might be entitled. Such a construction of the intention of this Government would be as ungenerous as it would be unfounded.

The Government were prepared, as my letter expressly stated, to suspend the license over a certain portion of the run, required for the support and maintenance of the miners, and to proceed to arbitration over that portion; but another portion, which they considered to be required for actual settlement of a bona fide character, they conceived they had a right to ask might be proclaimed a Hundred; and, had His Excellency thought fit to accede to this—which I must still regard as a just demand—it would not have been difficult to arrange the mode in which it could be effected.

His Excellency has been advised to decline, and has declined, acceding to my request, and I have only to accept that decision.

You will, I am sure, be happy to learn that the Government have succeeded in extinguishing the title of the joint licensees of Run No. 53, Messrs. Smith and Martin having readily accepted the liberal offer of the Government of 1s. an acre over the entire run. By this arrangement the mining population will have an area of 24,000 acres over which may be depastured “the horses and cattle required for the subsistence and convenience of the persons holding the Miner’s Right and Licenses and Leases;” and thus the necessity for suspending the license of any other runholder is obviated.

I readily embrace the opportunity of cordially thanking His Excellency’s Government for the earnest desire they have evinced to meet in the most efficient manner the “requirements of the miners, and promote their permanent settlement in such townships as it may be necessary to lay out,” and though unsuccessful in