Maori valued the opportunities for trade and access to new products and technologies, but if and when things went wrong - and they did - there was no avenue for redress.
The British Government was not enthusiastic about taking on another far-flung colony and sought advice from the British Resident, James Busby, and Captain William Hobson. Hobson recommended establishing several British settlements and Busby recommended that New Zealand become akin to a British protectorate.
However, Edward Gibbon Wakefield's plans for large-scale colonisation forced the British Government's hand. Wakefield intended to establish a settlement in Wellington, and to set up a government.
Regulating this colonisation was seen by the British Government as the only way to acknowledge the rights of Maori, as the indigenous inhabitants of the country.
The Treaty document drafted for signature on February 16, 1840 set out to provide for a settler New Zealand where Maori would have a special, protected position.
It was prepared in haste, by Hobson. He was assisted by Busby and missionaries, and Reverend Henry Williams translated the text into Māori.
The English and Maori versions seemed to promise different things.
In the English version, Maori ceded sovereignty, whereas in the Maori version, they accepted governorship - kawanatanga.
Both versions affirmed Maori possession of their lands, and British settlement where Maori were prepared to sell their land to the Crown.
The British Government undertook to maintain peace and order and protect Maori interests. Maori would have the rights of British subjects.
Over 40 chiefs signed the Treaty on February 6, 1840. Copies of the Treaty were then taken to other parts of New Zealand, from Kaitaia to Stewart Island.
Not all regions were visited, so not every iwi had the opportunity to sign.
In all, about 540 iwi leaders gave their agreement.
Those that signed had various reasons for doing so. Maori welcomed further opportunities to extend and protect trade. They wanted to see European settlement controlled. They wanted legal protection from unruly British traders and settlers, and further access to European skills and technology. They were wary of French colonisation.
For some Maori, the Treaty was seen as a sacred covenant between Maori and Queen Victoria.
Above all, the Treaty seemed to offer a new relationship with Britain where authority would be shared, where chiefly authority over tribal lands and resources would be protected.
Chiefs were often persuaded to part with land for low prices, in exchange for the promise of schools, hospitals and land reserves - but found that there was no way to ensure that such promises were kept. Meanwhile, they saw their land on-sold at a profit.
There is debate about the size of the Maori population at the signing of the Treaty. It was probably between 100,000 and 200,000. The European population was estimated to be around 2000. Within 20 years the trickle of British colonists had turned into a steady stream, new diseases had taken their toll on Māori, and the populations were roughly the same, at around 60,000.
The colonists came here to make a new future for themselves and their families. They wanted land, and many were impatient or ignorant of the Treaty, which they saw as an impediment to the march of progress.
Successive governments supported their demands and were quick to dismiss the Treaty. The Governors of the day were often caught in the middle - as representatives of the Crown - between Maori and settler interests.
In 1840, Maori could not have imagined the scale of colonisation that was to come. They protested against breaches of the Treaty - to no avail - and their resistance culminated in armed conflict.
Ultimately, they could not withstand the might of British and colonial military forces or to prevent the passing of legislation which enabled their lands to be taken away from them. The results were devastating and long-lasting.
At the time of signing, the Treaty was unique in that it led to the creation of a new sovereign nation - but its legal status was obscure.
Despite this, the Treaty has endured as a living document and a vital part of our constitutional framework.
It is central to our history - and we live with that history.
On Waitangi Day we can reflect on what this country stands for. Our Treaty asked of us that we act in good faith, and value others' rights and respect difference.
These are qualities to value and affirm - today and into the future.
- This is an edited version of Governor-General Dame Patsy Reddy's annual Waitangi Day speech at the Bledisloe Garden reception at Government House in Wellington on Monday.
