were you to send me copies of such reports, so that the engineers attached might have an opportunity of defending themselves.

As to the waste lands administration, I observe that your only objection now to the proposed sale of which you lately disapproved, is that there was no competition allowed—an assumption which cannot be reconciled with the fact that there were more than one application for the same land. It would appear that your Government has no objection to the creation of vast private estates ... the method of dealing with the Native lands, to which I must not particularly allude; abundantly proves that. The real question is, Did the Provincial Government take the best means of getting the highest price for the land hoped for sale? I assert they did, and should be glad to learn on what information you express a contrary opinion. That the means adopted were substantially in letters to the Hon. the Colonial Secretaries; and when the provisions of the Otago Waste Lands Act are remembered, I again assert that if the land had been offered at auction at 1os. an acre the Government would not have obtained 6os. for the block opened.

As to your method of dealing with the Waste Lands Board to the extent of their quasi judicial functions I am surprised that the Colonial Government should have adopted, to say mind, the apparently uncompromising position of sending persons to interview the members prior to such performance of such functions. In fairness to the members it seems to me that the telegrams you "received" from Dunedin in reference to their "supposed feelings" should be published, as I cannot but feel that they have been placed in a painful and peculiarly embarrassing position. You have sent, as an appendage to your letter, certain extracts from a correspondence that has passed between the Hon. the Colonial Secretary and myself. I cannot see, however, what bearing this has upon the question at issue. On 24th April you asked me to state the data on which the estimated revenue of the current half year was made up. I replied the estimate was based upon the extent of new hundreds which were being placed in the market. I had the words "largely based," I should have been more exact; and the returns of a dilemma which you attempt to impale me on would have been absent.

It is perhaps to be regretted that all the correspondence which has passed between the General and Provincial Governments during the past 6 months has not yet been published. Were this done it would serve to enlighten the people of Otago to the great difficulties which the Provincial Government has laboured under in administering the affairs of the Province.

In reference to the estimates forwarded to the Colonial Government under the provisions of the Provincial Appropriation Extension Act, let the treatment which the Provincial Government has met with be an illustration to the Colonial Government: instead ... upon a position which ultimately they had to abandon in opposition as it was adverse to their resolution of 10th July. They attempted to assimilate the functions of the Provincial Council, a body which disposes of their action, could be combined if need not point out to you that the Provincial Appropriation Act provides for the Government approval of the estimates of revenue only; and that the deficiency had not to determine which road is to be formed as a public bridge built.

The Assembly, although bent on Abolition, felt that such administration could not be so well performed as by the Superintendents and Executives of Provinces. And notwithstanding this I forwarded the estimates of expenditure, as the Provincial Government of Otago had nothing to conceal, and in the hope that this might have led to the estimates of revenue being more speedily allowed of. Revenues estimates were not, however, forwarded on April 6th, and as yet have not been sympathetically approved. The result has been much public inconvenience, as other telegrams not referred to in the appendix to your letter will disclose. I have attempted to respond to your former letters from memory ...

I abstained in my former letters from making any reply to reflections on the administration of our Colonial Government as you apparently considered such reflections the place in this correspondence. As to the delinquency of the Provincial Government, I estimate, however, to an independent view which the Colonial Government can find no parallel, it is only another illustration of the evil of governing from a distance. Had the Provinces of Otago Council been in session the Appropriation Ordinance would have become law without half the delay that has occurred; and I cannot only add that by an adverse vote though the action of the Waste Lands Board and your Government would place them at a disadvantage, they could not well reduce their estimates of expenditure, as the sales of special areas have not taken up the deficiency. If, however, the land revenue does not come up to expectation means have been taken to keep the vote down to a figure within the revenue.

I concur with you that there exists in Otago a Colonial pride and spirit which I have always shared, and which influenced me in opposing a dismemberment of the Colony when it was agitated by others. It was by none more warmly advocated than myself. But in common with the people of Otago I feel that New Zealand cannot become great by creating a centralised administration, and that the true interests of both islands would be best subserved by divisions into which the great land mass of the group is to be split. I feel that local government as I advocate without involving different Customs duties, you all together misunderstand me. No doubt were Otago an independent colony its debt would be much less than at present; but, for one, however, I have no desire to see the Province separated from the rest of the Colony unless it is absolutely driven to that course as the only means of preserving its entity, and holding its own. All it requires, as I take it, is a fair field and no favour. It wants nothing for itself which it is not willing to concede to the other portions of the Colony—namely, the management of its own local affairs; and the disposal of its own revenue within its own borders, excepting such as may be required for purely Federal purposes. The allusion to the Border Duties question is not to the point in so far as I am concerned. Surely there may be an agreement as to Customs tariffs between separate colonies, such as have existed between different kingdoms.

You express your hope that as the proposed vote of credit assumes shape and form my objections will cease. You will excuse me for saying that I am afraid I cannot comprehend this. In your former letters we were led to believe that all details had been arranged, and that nothing was required to secure such becoming law. But the submitting them to Parliament is repeated out that your proposals might not be sanctioned without what you may say appears to have been disregarded. In submitting the Constitution of the Colony, and the very best means of taking its place, has not been assured steps and forms. I confess that this is beyond my mind somewhat perplexing. Can it be that the Colonial Government is now so anxious of coming aware of the difficulties which have perplexed the minds of that what was attached in poor report ... has been found to assume a shape and form sufficiently definite to allow of its being dealt with. I have no wish to add to your difficulties, but I must say that it is not without some anxiety of mind that I view the proposal to represent federally provincial revenues and expenditure in the Imperial and Public Works Accounts rendered to the liabilities of these Provinces continuing. This I believe the happiest.