—I don't know whether you have done anything in consequence of the purchase from the French Company. It is clear to me that Akaroa will be the harbour of all the Canterbury region. Nature has settled that point. You ought therefore to secure that harbour. But Port Victoria will also be used, with a road to Akaroa. My notion is that you ought to secure the whole of Banks' Peninsula as part of the 1,000,000 acres. There must be a good road from Akaroa to the plain. Though the Peninsula is very hilly, much of it will be cultivated; and the dells or gullies are full of wood—an article very scarce in the plain. If you settle this with the Company, Thomas should be instructed by the first ship to lay out the chief town at Akaroa, and to mark out the best line of road thence to the plain.

P.S.—If there should be any land in the Peninsula desired by holders of land orders, but excluded from choice by not forming part of the 1,000,000 acres, dissatisfaction and grumbling would be inevitable. I would include the whole 268,000 acres—leaving 732,000 in the plain. If more were wanted in the plain, it could be supplied without an effort.

Any "reserve" in the Peninsula would be irremediable.