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 presence of the Natives, or any other considerations) to advise Her Majesty to exercise in our favour the power conferred on Her by the New Zealand Government Act, and to constitute the Canterbury Settlement into a distinct Province, under the terms of that Act. Our report of that interview was received by the Association with the greatest satisfaction; they are convinced that if the expectation thus held out be fulfilled, a most important stimulus will be given to the colonization of the territory which is to be the scene of their operations, and that they will be enabled to carry out their views in a far more complete and satisfactory manner than they could otherwise anticipate. They believe, moreover, that the care with which the first inhabitants of the proposed Settlement will be selected, and the unity of opinion and sentiment which, upon many important topics, is expected to prevail among them, will give to them peculiar advantages and facilities in the exercise of the privileges with which they may be entrusted. I have therefore to lay before your Lordship the earnest request of the Association, that the Governor of New Zealand may be empowered to form the Site of the Canterbury Settlement into a separate Province, subject to the conditions above mentioned, as specified by your Lordship.—I have, &c.

The Right Hon. Earl Grey, &c. &c.

No. 4.

Downing-street, 31st May, 1848.

,—In answer to your letter of the 23rd May, 1848, on behalf of the Association for founding the Settlement of Canterbury in New Zealand, I have to inform your Lordship that, as at present advised, I see no objection of a general nature to such an Incorporation as you suggest, and that if the Association will submit to me the draft of a Charter to the general effect stated in your letter, I will give it my immediate consideration, and shall be glad to find myself able to further the views which you have expressed respecting it.

As to the second point to which you have called my attention, I shall be prepared to instruct the Governor of New Zealand to report to me whether the District which may be ultimately selected for the Settlement can be formed into a distinct Province in the manner in which you recommend, without injury to existing interests, and regard being had to the policy which the Governor may find it necessary to pursue with respect to the native tribes; and, if it can, what boundaries can be conveniently assigned to it.

For this purpose, it will probably be advisable that the Agent whom you have selected should communicate the site on which he may fix immediately to the Governor, in order that I may receive that officer's report at the same time that the Association is informed of the choice made by its Agent; and, as I consider it highly desirable that the wishes of the promoters of the enterprise should in this respect be complied with, I shall learn with satisfaction that a District is fixed upon which unites the advantage of being capable of erection into a distinct Province with other favourable conditions for colonization.

In transmitting copies of this correspondence to the Governor, I will not fail to express to him the desire I entertain as far as possible to meet the wishes of the Association, as I am convinced that the success of this undertaking will be attended with very great advantage both to New Zealand and to this country.

I am, &c. The Lord Lyttelton.

TERMS OF PURCHASE.

  The whole quantity of Land reserved for the Canterbury settlement is about two millions four hundred thousand acres in a block.  With the exception of such Land as may be selected by the agent of the Association for the site of the capital (Christchurch), and of harbour and port towns, all the Land will be open for purchase as Rural Land. 