Government on the part of the colonists against the contingency of every charge falling upon this country in respect of the government and management thereof, should be deemed preferable by H.M. Government to the plan suggested in the paper No. 1 in that respect:— "The proposed Joint Stock Company would be willing to undertake the entire management and settlement of the colony under the pledge of its subscribed capital for the fulfilment of that condition:—The land to be sold and the proceeds of the sale to be applied in the manner already suggested. The management of the colony to be relinquished to H.M. Government, whenever required, upon the company being released from the liability to further advances in respect of the government of the colony.

"I see no objection to selling to a company a large tract of land at a minimum price of 5s. per acre, and agreeing that within certain extended limits no land shall be sold by the Government below that price, reserving to the Government the power of selling any amount at or above that price per acre.

"2. The company, however, must be bound to purchase the whole of their land, whether they settle it or not, by fixed instalments within a limited period.

"3. The whole of the purchase money to be expended in sending out emigrants, but a corresponding sum to be also paid over each year, to be laid out for the expense of the civil government, or in carrying out an additional number of emigrants. The latter application not to be made without the consent of the company.

"4. The proposal of a land-tax appears quite inadmissible as a mode of raising revenue. At all events, if it be adopted, it must be at the risk of the company,