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ingly in June, 1905, with Air. S. AI. Kanakanui, of the Survey 

 Office, I visited North Kona to fix on the ground the boundaries 

 of the area to be given up. As a condition of this surrender it 

 was agreed that the Board build and maintain a fence around the 

 area to be given up. This amounted, all told, to about ten miles. 

 Although no formal action was taken by the Board, I discussed 

 the matter with various members and was authorized to go ahead 

 with the arrangement, which I did ; contracts being let for the 

 purchase of wire and for building the fence. The wire w^as de- 

 livered and is now stored at the Government Nursery. The area 

 of Koa forest cut out by Mr. Kanakanui, after consultation on 

 the ground with Messrs. Henriques and Gomes, was 1,090 acres. 

 After the lines had been run Messrs. Henriques and Gomes 

 refused to agree to the terms of reduction offered by Air. Pratt, 

 standing out for certain propositions which could not be con- 

 sidered. The fencing contract was accordingly cancelled, a pro- 

 vision for doing so, in case of need, having been included therein. 



In the meantime Mr. Pratt had announced his intention of 

 leasing the lower part of Honuaula, including the old homestead 

 tract. This opened a chance for further negotiations on which I 

 have been working at intervals during the last six months. In 

 December, 1905, Messrs. Henriques and Gomes came forward 

 with a modification of the original proposition of a pro rata 

 reduction, whereby some 1,300 acres, containing the best part of 

 the Koa forest and also the triangular area of open land running 

 up to the peak of Hualalai were to be surrendered by them, pro- 

 vided the Board agreed to fence the line separating the reserve 

 from the part of Honuaula retained by them, a matter of about 

 two miles. Mr. Pratt agreed to this proposition so far as the 

 reduction of rental was concerned, and as the cost of fencing 

 the two miles was so very much less than I had been authorized 

 to incur in the summer, especially as the wire was already in 

 hand, I agreed for the Board. 



Messrs. Henriques and Gomes had an alternative proposition 

 that the Board buy out their lease-hold, but this proposition was 

 not one which could be considered. It need not be discussed 

 here. 



Of the 1,300 acres surrendered by Messrs. Henriques and 

 Gomes a portion, the exact area of which I do not now know — 

 perhaps a third of the whole — is the open land above the Koa belt 

 before referred to. I have arranged with Air. Pratt to lease 



