1 8 5 6.

HOUSE OF REPRESENTATIVES.

CORRESPONDENCE RELATIVE TO THE ESTABLISHMENT OF BRITISH AUTHORITY IN THE CHATHAM ISLANDS.

Laid on the table of the House 28th May, 1856, and ordered to be Printed.

Government House, Wellington, 29th December, 1855. Sir, —The public service requiring that effectual measures be adopted for the establishment of the Customs Department and for the protection of the Revenue in the Chatham Islands, I am directed to inform you that his Excellency the Governor requests your assistance in carrying out this special object, having full confidence in your willingness and ability to perform this service as effectively and as economically as possible. With this view you are authorised to charter a small vessel to convey yourself, an Interpreter, and such Natives as you may think it necessary should accompany you to the Chatham Islands ; on your arrival at which place, you will be good enough to issue such instructions as you may consider requisite for the permanent and effective establishment of the Customs there. You are also requested to administer, under a Dedimus Potestatem to be furnished to you by the Registrar of the Supreme Court here, the usual oaths to Mr. Shand as Resident Magistrate. Mr. C. Sharp will be appointed to be Deputy Collector and Landing Waiter during your absence. You are requested to make the necessary arrangements for the performance of your duties as Sub-Treasurer during the same period. His Excellency trusts that the whole of your expense on this account will not exceed one hundred pounds sterling. I have, &c., Stephen Carkeek, Esq., (Signed) W. Gisborne. Collector of Customs, Wellington. &c., &c., &c.

Custom House, Wellington, llth February, 1856. Sir, —I do myself the honor to report, for the information of his Excellency the Governor, that, in compliance with the instructions contained in your letter of the 29th December 1855, I chartered a schooner called the " Lady Grey," Kennedy, master, on the 31st of the same month, to proceed to the Chatham Islands and back to the Port of Wellington, being the most suitable vessel in port for such a voyage ; the owners to find a free cabin passage for myself, as charterer, for the sum of one hundred pounds sterling, and to charge subsistence money at the rate of six shillings per diem for cabin passengers, and three shillings per diem for steerage.

C. —No. 5.

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On Saturday, the sth January, 1856, we sailed from Wellington, having on board Mr. Buller the Native Interpreter, two Native chiefs, Te Puni and Wi Gako, and five of their followers. On Saturday, the 12th, arrived at Whangaroa at the Chatham Islands, where I received information from two or three Natives who reside there, that Mr. Shand was at Waitangi. Oil Sunday, 13th, sailed across the Bay and anchored at Waitangi ; found that Mr. Shand was on the other side of the Island, wrote a note and sent it off to him immediately, requesting him to come over to Waitangi as soon as possible. Monday, 14th, landed with the Native chiefs but could transact no business, the whole day ; being occupied according to Native custom, with the tangi and speeches. Mr. Shand arrived in the afternoon, when I proceeded on board with him and administered the usual oaths to hire, to enable him to perform his duties as a Magistrate, under a Dedimus Potestatem furnished me by the Registrar of the Supreme Court, which document I have since returned to the Registrar, with the usual notification on the back thereof. I ascertained from Mr. Shand that he had done nothing towards the establishment of the Customs in the Island, conceiving that he had not sufficient authority for that purpose. He thought I should find great difficulty in effecting the object of my visit; but as I differed from him in all my views, I told him at once, that he could not be of any assistance to me whatever, and begged of him not to interfere, as the Natives had already expressed to me their dislike towards him ; but I requested he would be present at the proposed meeting on the morrow, to hear and see for himself, which he declined doing ; and from that moment, until my departure from the Islands, Mr. Shand took no part in my proceedings with the Natives. Tuesday, loth.—Raining hard. Tangi at the Pa. No business transacted. Wednesday, 16th.—Landed with the Natives; proceeded to the house of a Native called Waupu, and agreed with him to rent ii for a Custom House at thirty pounds sterling per annum, it being admirably situated for that purpose, hence to the Pa, where a large number of the Natives were assembled, and business commenced by Te Puni calling upon them to listen to what \\ i Gako had to say to them. Wi Gako spoke at great length advising the Natives to allow the Customs to be established amongst them, and to adopt the Knglish laws, and support Mr. Shand as Resident Magistrate, explaining to them the practice in the Magistrates' Court in Wellington, and advising them to adopt the same at the Chatham Islands. Toenga, a Native who appears to have great influence amongst them, replied, that the Natives generally, disliked Mr. Shand; that he die! not sufficiently explain the object of his mission to them, and said that the Natives would ha>e offered him no opposition, if he had brought a proper letter to them. After several speeches on both sides by various Natives, it was agreed by the whole meeting that if I would give the Natives a solemn promise in writing on behalf of the Governor, that his Excellency would remove Mr. Shand if he behaved ill towards them, and they presented a numerously signed petition to the Governor to that effect, that I should be allowed to establish the Customs at once. This I promised to do, and then told them I found it would be impossible for Mr. Shand to carry on his duties without assistance from them, the landing places on the Island being so numerous. I then requested them to point out two of themselves in whom they could place the greatest confidence, to act as Preventive Officers, and to render Mr. Shand all the assistance in their power in the protection of this Revenue. They immediately elected Toenga Te Toki and Naira Pomare, to whom I promised to give appointments on the morrow, together with the written promise. They also wished to have a Doctor to attend to their wants, and that he should be the Resident Magistrate, if they had any strong grounds of complaint against Mr. Shand. This I undertook to embody in the promise. Thursday, 17th.—Proceeded a-shore, and had the promise, in the Maori language, read to the Natives assembled. I then delivered it to one of the chiefs. Copy and translation herewith enclosed. The appointments of Toenga and Naira were then read, together with instructions for their guidance, the most simple I could prepare, which met with the entire approbation of the Natives ; and they all with one consent declared they would assist in carrying them out. Copies and translations herewith enclosed. After some further conversation on the subject of a Resident Magistrates' Court, the following names were agreed to, and handed to me for his Excellency the Governor to choose assessors from, viz., Toenga, Te Toki, Naira Pomare, Watare Tangare, Hare Ngaka. Friday, 18th.—Started for Kaingaroa on horseback with Mr. Buller, Te Puni, Wi Gako, and their followers, the Natives having furnished us with horses free of expense. Slept at a Native Fa called Tampeke, and arrived at Kaingaroa on Saturday the 19th ; had a meeting of the Natives, the same day when precisely the same things were agreed to as at Waitangi. I appointed Reni Taupatu to be a Preventive Officer, temporarily, until the Governor's pleasure would be known, and received from the Natives the following list of names for his Excellency to choose assessors from, viz., Wiremu Kingi Mere Mere, Rawiri Kupau Hare, Kingi 1 eoti .Vlanu. I also received an unsealed letter from the Natives, addressed to his Excellency and Mr. M'Lean. Translation herewith enclosed.

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Sundav, 2)th.—Returned to Waitangi, and reported myself to the master of the "Lady Grey as ready for sea, to prevent Her Majesty's Government being charged demurrage accoiding to Charter Party. Monday, 21st. — Sailed for Wellington, the vessel having to call at a Port oil the Coast, to deliver cargo, which from stress of weather she was unable to perform ; returned to Whangaroa on the 25th; landed the cargo and sailed same day for Wellington, where we arrived on Sunday 3rd February, 1856. Besides appointing three Preventive Officers, at a salary of fifty pounds per annum each, and renting a Custom House at thirty pounds per- annum, I authorised Mr. Shand to purchase a good whaleboat, at an expense of forty pounds sterling ; the expense of a temporary crew, I estimate at one hundred pounds per annum. The salary voted for the Collector is three hundred pounds per annum, and the expenses of this expedition, including subsistence money for the Native Interpreters, Native chiefs, and their followers, together with Mr. Buller's pay while employed, amounts to one hundred and forty-four pounds eighteen shillings sterling, making a total of seven hundred and sixty-four pounds eighteen shillings sterling, which I trust the revenue of the first year will more than cover. I enclose herewith a copy of my correspondence with Mr. Shand, which will explain any details I may have omitted in this report. I did not peruse any of INIr. Shand's letters previous to my departure from the Island, because I had determined not to be biassed in any way by his prejudices, and he was quite unable from his position, to render me the slightest assistance ; moreover, 1 did not wish my attention to be diverted from the objects I had in view, namely, the arranging everything satisfactorily with the Natives. . . I state this, because I found on opening his letter of the ljth January, at sea, in the thud paragraph, that he conceives I had given him authority to do certain things that I had not even thought of. . I cannot account for such a style of writing except as a sort of excuse for not having done anything previous to my arrival on the Island. It would naturally have suggested itself to the mind of any officer, if he had been authorised to do anything unusual that the authority should be put in writing ; but the affair is too absurd to reason upon, and I do not anticipate the slightest inconvenience from it, as there is no immediate probability of any arms or ammunition being landed at the Chathams ; and I have written to Mr. Shand to correct his misapprehension, which letter he w ill shortly receive, as the " l-ady Grey" returns almost immediately. Copy of my letter herewith enclosed. I beg to assure his Excellency that both Mr. Buller, the Native chiefs, and myself, were obliged to undergo a considerable amount of bodily—and I may add for Mr. buller and myself mental — fatigue, to accomplish the object of our mission within the limited number of lay days, so as to cause no extra expense to Her Majesty's Government for demurrage. I also beg to assure the Governor that I have not authorised or incurred any expense that I did not consider absolutely necessary, aud I trust that you will obtain and forward to me his Excellency's approval of the same at your earliest convenience, that I may instruct Mr. Shand as to his future proceedings; also, that the appointments of the Native Preventive Officers, and the notification of the Port of Waitangi as the Port of Entry for the Chatham Islands, may be published in the Government Gazette, as soon as possible after their confirmation by his Excellency the Governor. I herewith return the copy of Mr. Shand's letter of the 25th October 1855, referred to me for my Report, and which I have to request you will be good enough to consider this letter. I have, &c , (Signed) S. Carkeek, Collector. The Honourable the Colonial Secretary, Auckland. &c., &c., &c.

I Stephen Carkeek, Collector of Customs and a Magistrate of New Zealand, appointed by the Governor to establish the Customs in the Chatham Islands; also to arrange for the establishment of a Resident Magistrates Court in this place—do make the following solemn promise. Should the Governor receive a petition containing complaints of improper conduct towards the Maories on the part of Archibald Watson Shand, Esquire, Collector of Customs and Resident Magistrate at the Chatham Islands. And should the Petition be signed by a number of the Natives, Mr, Shand will be superseded in his present appointments. And this moreover. Whenever the Revenue of these Islands will afford i*,, the Governor will send a Doctor who understands the Maori language to the Chatham Islands, to attend to t le wants of the Natives, and if (at that time) they are dissatisfied with Mr. Shand as Resident Megistrate, the Doctor shall be appointed to that office, and Mr. Shand shall retain the office of Collector. Native Assessors shall also be appointed, to stand in Native cases. J, having now tonsented to these things, it is for the Natives to accept Mr, Shand.

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Let no unfounded complain! be urged against him, but let them treat that Gentleman with respect. Let them assist him, and thus render the performance of his Custom House duties easy. The Governor has commanded me to assure the natives that his Excellency's feelings towards them, are those of affection ; that he will be the protector of them, and their rights, and will not suffer any one to molest them. Written by my hand at Waitangi, at the Chatham Islands, this day, 16th of January, 1856. (Signed) S. Carkeek, Collector. I certify the above to be a true translation from the Maori original, now in the possession of the natives. (Signed) W. L. Buli-er, Native Interpreter.

Friend Toenga, You are hereby appointed a Preventive Officer of the Customs Department its the Chatham Islands. Your Salary will be fifty pounds sterling (£5O) per annum. It will be for the Governor to confirm this appointment. Mr. Shand will instruct you in all things pertaining to the Customs. Pay strict attention to all he may say to you. From your friend, (Signed) S. Carkeek, Collector. To Toenga te Poki, Waitangi, Chatham Islands. N.B.—A similar letter was addressed to Naira Pomareof Waitangi, and also to Rinai Taupata of Kaingaroa. MEMORANDUM. Custom House, Waitangi, 16th January, 1856. These are the duties of the two natives appointed Preventive Officers of the Customs Department with all vessels visiting the Chatham Islands. Allow no goods to be landed from a vessel without the Master possesses a writing. This writing to be from under the hand of Mr. Shand, Collector of Customs.—Should the Master or Crew of the vessel persist in landing goods without this writing, these are the regulations with regard to those goods. The Preventive Officer is to direct the Natives of the place to seize the goods, and take them to the Custom House. When the consent of the Governor has been obtained these goods will be sold, and one-half of the proceeds will be given to the Preventive Officer, and to the Maories who made the seizure. Vessels may visit any part of the Island but the Master of the vessel must personally report his arrival to the Collector at Waitangi, belore the Preventive Officers allow him to take off to his vessel any goods he may purchase from the natives. When a vessel arrives at Waitangi, the Collector together with otie of the Preventive Officers, will go off to her in the Custom House boat. The Preventive Officers will engage a crew for this boat, and it will also be for them to decide upon a reasonable rate of payment. Let the Preventive Officers assist the Collector in all things, and thus prevent confusion. (Signed) S. Carkeek, V Collector. I certify this to be a true translation from the Maori original now in the possession of the natives. (Signed) W. L. Buller, Native Interpreter.

Waingaroa, 19th January, 1856. Friend M'Lean, — Salutation to you alul also to the Governor. Friend M'Lean,—Your words and those of the Governor have reached us. We have seen and have heard also, your friends Te Pune, and Wi Tako, both we and our people have heard them. We have heard from them of the opinions of Tarangakuri and the natives of Port Nicholson and Taitapu, with regard to the selling of the land. We are not willing to sell those lands. Friend M'Lean, listen, both you and the Governor. This alone is our opinion, we have no other, You have heard our words before from the Bishop, we are firm : when you wrote to us sometime since we would not consent and now we say again we will not consent—no never. Friend M'Lear, listen, both you and the Governor ; cease at once to pay attention to those arrangements for selling land. As you are aware that our father and his son are on the land.

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Listen, McLean,—Let Kuri derive money from these lands alone, Port Nicholson, Wairarapa, Kaputi, Napauha, Ahahura ; but Poutama and Pararoa, let those remain. Do not let a disturbance' be created by these lands; that is all we have to say. Rules are now commenced for our disturbances; you and the Governor have heard about it; we have accepted the laws oc' the Queen. It is now right; you have sent us light, for we were in darkness. Friend McLean,—Yes, we have agreed, the whole of us. The causes of disturbances on our island have been explained to us. We have appointed here Natives to stand by the side of Mr. Shand and assist him ; the names of the Natives are :—Werimu Kingi, Rawiri Kupanhare, Kingi teoti Mana—Assessors ; Rurai Taupata—Preventive Officer. They are appointed by our assembled people with their chiefs. You will hear of it from your friends Te Puna and Wi Tako, who were present, and also the white men with them. Friend the Governor,—You will have heard of our wish that Mr. Shand may not have many European officials placed with him ; let him be the only European official for this island, for Wharekauri. Should we find his conduct improper we shall send him back, and request you to send us another in his place. Friend the Governor,—Send us a doctor; but let him be a good doctor, should he be other-? wise we will send him back. That is all. From your friend, Wiremu Kingi Meremere, And from the people living in this island in Wharekauri. True translation, (Signed) W. L. Buller, Native Interpreter.

Waitangi, 16th January, 1856. Sir,—I do myself the honor to inform you, that I have this day concluded an arrangement with the Maori population of these Islands, by which the Customs Department is now established on what I trust will be a permanent footing ; but this, in a great measure depends upon the exercise of sound judgment and discretion on your part towards the Maories, who, I am sorry to say, have by no means a favourable opinion of you at present ; and they have bound me over by a solemn promise, before allowing me to establish the Customs, that his Excellency the Governor will remove you from being Collector of Customs of these Islands, on a well grounded complaint being preferred against you by the Maori population generally. I need hardly point out to you how easily this may be avoided, and the affections of a petulant race secured by the exercise of great patience and forbearance, and by cultivating their acquaintance and friendship upon all suitable occasions. I have appointed Toenga Te Poki and Naira Pomare, to be Preventive Officers in the service, at a salary of fifty pounds sterling per annum each ; I have not selected these men myself, but requested the Maories to do so ; they are men of influence among them, and will render you such valuable assistance that, in my opinion, the collection of the Revenue of Customs will henceforth be comparatively an easy matter. I have directed them to place themselves entirely under your control, and I trust you will give them such clear instructions as will enable them to perform their duties in a satisfactory manner, especially in cases of seizure of goods illegally landed, and that vou will dispose of such seized goods at the earliest possible period the law allows, so that the seizing officer may obtain his moiety of the net proceeds at an early period; nevertheless, the sanction of his Excellency the Governor must in all cases be obtained previous co the distribution of any such seizure. I have also informed the Maories generally, that any one of them may detain goods landed without Entry, until the arrival of one of the Preventive Officers, who will either release or seize the goods as the case may require, or as you shall instruct; and, in case of seizure, the detaining Maori or Maories shall be entitled to one-half of the seizing officer's share: this being a slight departure from the rules of the service, will require the confirmation or disallowance of his Excellency the Governor, of which I will take care to inform you ; in the meantime, it will be quite proper for you to act upon it until further orders. I have appointed Waitangi to be the Port of Entry for these Islands, and rented a house from Warapa, at .£.lO per annum, for you as a Custom House ; and I recommend you to approve a suitable building for a Bonding Warehouse whenever one is offered for that purpose. I believe it is the intention of more than one trader to import iron houses, one of which wi J be perh.ips the best building you can select, and when approved, be kind enough to inform me by the first opportunity, so that the usual notice may appear in the Government Gazette. I have to request you will be kind enough to give your opinion freely on these arrangements

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because, from vour not having been in any way a party to them, you cannot in fairness be hild responsible until you have expressed your assent, or given your reasons for dissent, a copy ot which letter it will be my duty to lay before the Governor, that his Excellency may be ena e o form an opinion as to whether you are likely to carry them out zealously and la a satisfactory manner : the arrangements appearing to me to be the best possible under the peculiar circumstances of the case, and the present position of Her Majesty's Government in these Islands. I have, &c., (Signed) S. Carreer, Collector. To A. W. Shand, Esq., Collector of Customs, Chatham Islands. &c., &c., &,c

Waitangi, Chatham Islands, 16th January, 1856. g IR) Jdo myself the honor to inform you, that the Maori Population of these Islands, in Public Meeting assembled, have this day consented and agreed to accept British Law at the hands of the Resident Magistrate appointed by His Excellency the Governor, and to aid and assist him in all things; having first obtained a promise from me on behalf of the Governor, that Native Assessors shall be immediately appointed to assist you in deciding Native Cases, it now only remains for me to request you to take upon yourself the duties of your office, and report the same for the information of the Governor, with any observations you may think proper to make for His Excellency's consideration. I have, &c„ (Signed) S. Carreer, Collector. P. S.—l will furnish vou with a copy of the Native Acceptance so soon as it shall be translatSd" (Signed) S. C. A. W. Shand, Esquire, J. P., Resident Magistrate, Chatham Islands, &c., &c., &c.

Waitangi, 21st January, 185ti. Sik, —Referring to my letter of the 16th instant, I now do myself the honor to acquaint you further, that I have made the same arrangements with the Kaingaroa Natives as with those at Waitangi, and appointed Reire \ aupatu a " Kau te tiro" or Preventive Officer, at a Salary of Fifty Pounds per annum. I have a letter from the Natives promising the Governor that they will assist you in everything, I can, therefore, leave the Islands in full confidence that the Customs Revenue can be easily collected with the exercise of nothing more than common prudence and discretion. From the information I have been able to collect since my arrival, I estimate your Imports for the current year, at from ten to fifteen thousand pounds sterling, upon which it the full duties be collected, vou will have Revenue of say, at least, one thousand pounds sterling, out of which you will be kind enough to pay the expenses of your Department according to the following Schedule, and remit the surplus to the Collector of Customs for the time being at Wellington, under whose survey you have been placed, and from whom you will.receive all your instructions in this Department, until further orders from His Excellency the Governor. SCHEDULE. Collector .. .. .. .. .. £300 per annum Three Preventive Officers at £50 per annum each .. 150 " Rent for Custom House .. .. .. 30 " Roats Crew, to be employed temporally, at the cheapest rate 100 " £580 In addition to the Schedule, you are at liberty to purchase a Whale ljoat, at an expense of Forty Pounds sterling, for which sum I am given to understand, a good one may be procured, with Mast, Sail, and Oars, complete, which will bring your expenses to about six hundred and twenty pounds sterling per annum, leaving a clear sample at the lowest estimate of 'l'hree hundred and Flighty pounds sterling for the first year. You will consider these instructions as merely temporary, to be altered or confirmed by His Excellency the Governor, (being the best lam able to prepare after a careful consideration of the peculiar position of the Department in these Islands) and I trust you will find that all difficulties, so far as the Native population is concerned, are entirely re-

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moved, and that you will be able to carry on your duties just as easily at Waitangi as at any other Port in the British possessions. I have, &c., (Signed) S. Carreer, Collector. A. W". Shand, Esq., J. P., Collector of Customs, Chatham Islands, &c., See.

Waitangi, 21st January, 1856. Sir,—I do myself the honor to leave in your hands, Fifty Copies of the " Pilgrims Progress' in the Maori language for distribution as you may think fit amongst the Natives. I have, &c., (Signed) S. Carreer* Colloctor. A. W. Shand, Esq., J. P., Resident' Magistrate, Chatham Islands, &c.j &c., &c.

Custom House, Chatham Islands, I7th January, 1856. Sir,—I have the honor to acknowledge your letters of yesterday's date, informing ine of the terms of your agreement with the Maories of this Island for the establishment of the Customs, and generally their recognition of British law. Of the importance of effecting this desirable result there can be no two opinions, and, in justice to you, I may add that your arrangements have been very judicious in the changed state of things you represent. In removing the main cause of opposition against myself by your authorising me not to insist on the prohibition of ardent spirits and arms, &c., to the Natives who were uneasy under the idea of any restriction, I have now more confidence, in trusting to have no more trouble or cause of disagreement with them ; but should the like occur, you may indeed depend upon it that it will not be of my wilful procuring, nor when I can with consistency prevent it. You are aware that it is from no personal ground of dislike that any of the Natives have objected to me, but from their early aversion to any appointments altogether, and to my insisting upon and maintaining a respect for authority, that they were willing to disregard. But you could not have done other than assure them of the rule of Government that any public servant is subject to be dismissed on a proper and reasonable complaint made against him. I will not entertain any apprehension that the Maories may regard the concessions you have been instructed to make to them, not merely (as they were intended) an impunity for what is past, but mistake them also for a freedom to offend in future ; and that my influence as a Magistrate may suffer by your telling them that I am to be relieved of the office of Government Resident on the Island. But I will continue to do my best in the circumstances, until Government arrangements are completed. I have, &c., (Signed) A. W. Shand, ' Collector. The Collector of H. M. Customs, Wellington. &c., &c., &c.

Custom House, Chatham Islands, 25th January, 1856. StR,—I have the honor of your favour of the 21st instant, communicating further paiticul.u of your arrangements with the Maories of this Island, with Schedule ot the expenses o t.u Customs Establishment for the ensuing year, and supposed amount of duties to be collected. In remarking upon these I will confine my observations, first, to qualify too sanguine an anticipation that the Revenue expected will be surely realised ; and 2nd. next as to my requirements, in order to enable me to use my best endeavours to realise the amount you contemplate, if it be possible.

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the first place then, I have no certain assurance of the trading vessels arriving here, for, at any rate, two months to come, i.e., until the potatoe crops are ready for being exported; and I apprehend, moreover, that many former traders to this Island will not be inclined to return with dutiable goods, when they know of the Customs being established here, and being well aware of the fact that the inhabitants of the Island are already very generally in debt for articles imported and have pledged the very crops in the ground for this season, to meet their liabilities. I shall also be at no small loss in securing the actual duties on ad valorem goods, for instance, landed at any Port where I am not present in person to inspect and compare the quality of the goods with their imputed values in the Entries neither Landing Waiter or Clerk to assist me. 2. In the next place, while I have not had the power of exacting duties hitherto, I have, therefore, of course been without salary ; and in addition to my necessities, I will have at the end of each month to meet the payments you have engaged to to the Native assistants of the establishment, also for the rent of the office ; and for the purchase & a boat costing £40, promised to be paid out of the first proceeds of Revenue collected. Trusting to your explaining still further the necessity of early transmitting to me in meantime a temporary advance for these purposes. I have only to recommend the enclosed letter on the subject to your care, addressed to the Honorable the Colonial Secretary, and I have &c., (Signed) A. W. Shand, Collector. The Collector of H. M. Customs, Wellington. &c„ &c., &c.

Chatham Islands, Waitangi, '2lst January, 1856. Sir,—l have had the honor of your despatch of 21st ultimo, by the hands of the Collector of Wellington, and have paid due respect to it. Mr. Carkeek has now completed his arrangements, and as they involve an expense of £580 per annum, exclusive of the arrears of my salary ; cost of a boat, (£4O) to be paid from the first collections of duty ; expense of repairing and putting into proper condition the ware for a Custom House, and such necessary articles of office furniture as are procurable here. I have the honor to request that the Colonial Treasurer be authorised to remit to me the sum of one hundred pounds sterling, in order to meet the first outlay for the ensuing two months, or that, until the arrival of vessels, with dutiable cargoes that may then be expected. I have, &c., The Honourable (Signed) A W. Shand. the ( olonial Secretary , Auckland. &c., &c., &c.

Custom House, Wellington, sth February, J 856. Sir,—I take th? earliest opportunity after my arrival at this Port to correct a false impression you appear to be labouring under, that I have in any way authorized you to allow the importation of arms and ammunition , possessing no power myself to break any law, rule, or regulation, I could not delegate such power to any one else, and, as far as I can recollect, the subject of our various conversations, I distinctly told you more than once that His Excellency the Governor would not and could not authorize any one to break the laws. I can only regret that the hurry of my departure from the Island, when I conceived every thing settled, prevented me from perusing your letters until after the vessel was at sea, bnt I take this early opportunity of correcting a mistake, which is, I believe, not of that importance you appear to attach to it, for I do not think the Natives require arms for any other purpose than the destruction of wild fowl, with which the Islands abound. I have &c., (Signed) S. Carkeek. Collector. A. W. Shand, Esquire, Collector of Customs, Chatham Islands. &c., &c., &c.

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Custom House, Wellington, •2(ith February, If 50, Sir,—Referring to my report of the 11th inst., of the result of my trips to the Chatham Islands, I do myself the honor to request you will be kind enough to obtain the sanction oi his Excellency to the following expenses, viz : — £ s. el. Charter Party, " Lady Grey'' .. .. .. .. 100 0 0 Subsistence money Mr. Bullen, Interpreter, cabin passenger .. • • 74 0 Ditto, seven Maories, steerage .. •. .. 25 4 0 IVlr. Bullen's salary, sth January 1856 ... 12 10 0 Total .. .. .. £144 18 0 Making a total of one hundred and fortv four pounds eighteen shillings sterling. Y I have, &c„ (Signed) S. Carkeek, Collector.

Colonial Secretary's Office, Auckland, 15th March, 1856. Sir,—I have the honor to acknowledge the receipt of your letter of the 11th ultimo, reporting your proceedings at the Chatham Islands. In reply, his Excellency the Governor has directed me to express his disapprobation of those proceedings, particularly with regard to the line of conduct assumed by you in reference to the Collector of Customs and Resident Magistrate there; and to the promises which you made, on behalf of the Governor, to the Natives that Mr. Shand should be suspended on a petition being received from the Natives complaining of him. Considering the nature of the offices held by Mr. Shand, and the importance of his exercising influence over the Natives, his Excellency thinks that you should have interposed friendly advice and aid to settle any differences which may have arisen between him and them, and to create confidence and good will ; and his Excellency cannot but perceive with great regret, that the whole tenor of your proceedings, as reported by yourself, was calculated to degrade that officer in the estimation of the Natives, and to render his removal an almost absolute necessity; not upon proved grounds of misconduct, but in consequence of unsatisfactory relations between the Natives ■and himself, greatly aggravated, his Excellency fears, by your proceedings. Before his Excellency sanctions the expenses provisionally authorised by you, he wishes to receive from you a Report on what grounds you think an excess, over the authorised expense of more than one hundred pounels should be incurred on account of the Chatham Islands ; and you are requested to state whether the services of the Preventive Officers (whose salaries amount to £150) could not be dispensed with, and the Boat's Crew acting as Customs and Policemen only employed. 1 have also to inform you that the Port of Waitangi will be proclaimed as a Port of Entry ' and to request you to advance to Mr. Shand one hundred pounds, (to be accounted for by him) to enable him to meet current expenses. I have, &c., (Signed) Andrew Sinclair, The Collector of Customs, Colonial Secretary. Wellington. &c., &c., &c.

Custom House, Wellington, Ist April, 1856. Sin,—I do myself the honor to acknowledge the receipt of your letter of the loth ultimo No. 94, conveying his Excellency's disapprobation of my proceedings at the Chatham Islands. I beg leave to state that the promise given to the Natives that Mr. Shand should be removed if he behaved ill towards them, of which they were in considerable apprehension, was the only condition upon which they would consent to treat with me at all. I had therefore, only to consider whether I would give the promise, as desireel by them, or, come away and leave the object tor which I was sent to the Islands unaccomplished. There is no one more fully aware of the necessity and importance of an officer in Mr, Shand's position being able to exercise an influence over the Natives than myself; but on my arrival at the

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Islands, I found Mr. Shand treated with contempt by them, and conceiving he had no power, he had not attempted to exercise any authority ; there was, therefore, no difference, that I am aware of between them, so that I do not see how I could interpose to settle or advise him upon dispatches that did not exist. I had the greatest difficulty in prevailing upon them to ailow him to enter upon his duties as Collector of Customs, and I beg to observe, that 1 did not interfere with him m his Magisterial capacity at all, except in so far as the promise was concerned, and the agreement of the Natives to accept British law. Whenever I had any occasion to allude to Mr. Shand, in conversation with the Natives, they invariably spoke of him as the « bad man, or the fool. lam sorrv to be obliged to state anything so derogatory to Mr. Shand, but the censure contained in the Despatch under reply, renders it imperative upon me to state the whole truth, which I can assure his Excellency any inquiry will establish. I placed Mr. Shand in authority and in a position to be respected by the Natives, and I am persuaded that it will be his own fault if he is not so in future ; they began to treat him with deference immediately, which they had never done before; and no man could be more delighted at the altered state of affairs than he was himself. He was perfectly astonished at the facility with which the negotiations were proceeding, and epeatedly expressed himself to this effect; although of course, he did not like the promise. I have since received a letter from him, and from which I will quote sufficient to shew his Excellency that Mr. Shand does not feel himself very much degraded by my proceedings. " Waitangi, " G'th March, 1856. " Dear Sir,—l forgot to say that an intelligent Native, Kotaue Matiori, who was distinguished by special letters of recommendation from the Government id Auckland, and is favourably known to Mr. Domett, is among the arrivals in the " Lalla Rookh, and to reside here. " Perhaps it would be proper to add his name also to the list of Assessors' to be nominated ? " The sensation of touching their salaries has had a magical effect among my officers and their riends. They are now as forward in congratulations anent my proceedings, as they were b suspicious. pfnvo " With regard to Miles, I have given him half a dozen, and let him off easy ; I am beginning to follow your quarter-deck practice, for I see that there is no use of reasoning with people who are not to be reconciled to hitting high or low when you are administering a proper castigation. Now, I think it will appear clear to his Excellency, that if the unsatisfactory relations between ihe Natives and Mr. Shand had been aggravated by my proceedings, he could hardly state so snort a time after my departure, that his officers, who are the principal men in the Islands, and their friends, are now as forward in congratulation as they were before suspicious ; the fact is, that I made the only arrangements possible under the circumstances for the establishment of the Customs, with the consent of the Maori population ; I did everything in public, I had no concealment anyone, and I firmly believe no other course was open to me. With reference to the Repoit quired required by his Excellency, as to the grounds upon which I think an excess over the authorised expense of more than one hundred pounds should be incurred, I beg leave leave to state that my instructions do not positively limit me to that sum ; if they had. I could not have proceeded on the voyage, as that was the amount of the charter party of the vessel, including, as usual, the victualling of myself as charterer for Her Majesty's Government. The salary of the Interpreter might be charged to the Department of the Resident Magistrate from which he was borrowed by Mr. M'Lean, who gave him his instructions to accompany me, if his Excellency should think proper ; but I thought it advisable to charge it to the expenses of this expedition, that it might be recovered from the Chatham Islands Revenue, whenever the Collector there should find himself in a position to refund it; and I may state, incidentally, that he has already received a considerable amount of Customs duties. The victualling of Mr. Buller, the Interpreter, the Native Chiefs arid their followers whilst upon Government service, irust, I should think, be considered a necessary expenditure, and I really do not see how I could have proceeded more economically than I have done. With reference to the Preventive Officers, their services will seldom be required at the Port where the Collector may happen to be ; for although Waitangi has been declared the Port of Elltry, vessels will not always discharge there, on the contrary, it may happen that vessels will be discharging at Whangaroa, Tubemga. Waitangi, Kaingaroa, and Owenga, at the same time, and tie Preventive Officers were appointed by me to look out at those places in the absence of (liq pollector.

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There is 110 permanent boat's crew under the present regulations, but the Preventive Officers employed a crew when their services are required, at the cheapest rate. I beg, on this point, to refer you to the instructions issued by me to the Preventive Officers; copy of which, and translation, I furnished with my Report. I have this day authorised Mr. Shand to draw upon me for one hundred pounds sterling, as instructed by you ; perhaps you will be kind enough to give the necessary instructions to me, as Sub-Treasurer, to furnish the money out of the General Revenue. I have, &c., (Signed) S. Carkbek, Collector. The Honorable the Colonial Secretary, Auckland. &c., &c. &c.