No. 22.
Copy of letter from the Colonial Secretary, to His Honor the Superintendent of Nelson.

Sir,—

In referring to your Honor's letter of the 30th October last, transmitting the quarterly report of the Trustees of the Native reserves at Nelson, I am directed by His Excellency the Lieutenant-Governor to convey to you his approval of the arrangements you propose to make, and which you can carry out accordingly.

With regard to any expenses connected with the administration of the Native Reserve Estate, His Excellency observes that it will be absolutely necessary that they be met in all cases by the receipts of the Trust, and not by advances from the General Revenue, and that of course, until all the outstanding debts are cleared off or arranged in some satisfactory way, these expenses must be kept strictly within the most economical limits and only be incurred for such necessary purposes as cannot be avoided page 283without serious injury to the property. The one great point to bear in view being that until the debts and liabilities of the Trust are provided for no works of utility or improvement ought to be undertaken.

With respect to the sum due to the representatives of the late Mr. Thompson, His Excellency desires me to add that he will communicate with the Governor-in-Chief as to the promises mentioned by the Board, but that he has no knowledge of any arrangements of the kind named, having been proposed by His Excellency.