RECENT DISCOVERY OF GOLD IN AUSTRALIA   169

Mr. Ring had a machine for working made at Macgregor's settlement while your committee was there, which he intended to bring into operation as soon as he returns to work ; and from all that your committee have observed they have no doubt but that he will in a very short time produce gold in such quantities as will prove so satisfactory to the general committee as will induce a fuller inspection by themselves on the ground.

(Signed)   W. C. DALBY.

JAMES MACKY.

JOHN WILLIAMSON.

Schooner "Undine,"   JOHN MACFARLINE

Saturday, October 23, 1852.   PATRICK DIGNAN.

NEW ZEALAND.

Enclosure 3 in No. 1.

SIR,   Auckland, October 23, 1852.

I HAVE the honour to state, for the information of the Lieutenant-Governor, that in obedience to his Excellency's commands, I proceeded to Coromandel Harbour on the evening of the 18th, in order to see the native owners of the district in which specimens of gold were reported to have been discovered, for the purpose of making known to them his Excellency's wishes.

I arrived at Coromandel Harbour on the evening of the 19th, and having ascertained beyond doubt that gold had been discovered in a stream running down in a southerly direction from the high range of hills into Coromandel Harbour, I proceeded next morning to the settlement of the chief Paora, who was stated to have the principal claim to the land in which the gold was found.

I explained to the natives that if gold was found in large quantities that people would flock from all parts, and that disturbances would most likely arise if proper measures were not taken to prevent them, and suggested to them that they should rely on the steps which the Government might think fit to take to keep order and regularity, and pointed out the advantages they might be enabled to reap therefrom, not only by a money payment being made to them from the proceeds of licence fees, as well as from the increased demands for their produce.

The natives expressed themselves much gratified at receiving from the Government the first intimation of gold having been found, but stated that they were afraid of the multitude of Europeans that would flock into the country, and stated that they would have to consult with Teraia and Kati Kati, and other chiefs residing in the Thames district, before they could give any definite answer to the Government. Messages have therefore been sent to the various chiefs in order that a meeting may be held during the ensuing week at a place named Kikowakarere, near Coromandel Harbour, in order to discuss what measures they ought to adopt.

At present there does not seem to be any inclination on the part of the natives to molest the few Europeans who are now searching for gold amongst the hills ; and probably they are waiting to see if it is found in any large quantity, when they may prefer some extravagant demands.

From the nature of the country it would appear that gold must be diffused along the whole range of hills extending from Cape Colville into the interior ; and if such is the case the natives' claims will become so divided that they will be unable to combine so as to make any extensive opposition to the measures of the Government, and from the avarice of their character will most likely try to induce diggers to settle in their immediate neighbourhood.

From the fickleness of the native character, and from the turbulent and disaffected character of Teraia and others of the Thames chiefs, it will be difficult to surmise what views they may take of the question ; and every method which prudence may devise may fail to prevent a collision of the races, particularly if the natives try to prevent the Europeans from digging.

If, however, they can be induced to agree to the proposals of the Government, they will, from their knowledge of the country, make an admirable police for the purpose of maintaining order, as well as preventing unauthorized individuals from working.

Enclosed is a letter from the Chief Paora to his Excellency.

I have, &c.

(Signed)   C. L. NUGENT,

The Hon. the Colonial Secretary.   Native Secretary.

Encl. S in No. 1.