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the northern part of New Zealand is most especially suited for its growth. Flax does not require rich soil. I have seen growing in Mahurangi about half an acre of European flax, quite as good as any I ever saw growing in Ireland. This flax was grown from seed furnished by the Government. With the appliances that are now used for the preparation of flax there is not a great deal of work about its production, and as it sells at home at from £G0 to £100 a ton, it could be easily sent to any market. I hope some encouragement may be given by Government for its growth. Were it grown by the northern settlers of New Zealand, instead of seeing them struggling and in poverty, we would soon, I believe, see them if not wealthy, at any rate comfortable and prosperous. Trusting you may be able to do some good in this way, I have, &c, J. Sheehan, Esq. R. McKinnx. P.S. —Nobody knows better than Mr. Palmer does all about the flax, the putting up mills for it, &c.

No. 7. Eepoet of the Mount Rochfort Coal Field Inquiry Committee. iToiTB Committee appointed to consider and report upon all leases and licenses applied for or granted upon any part of the Mount Roohfort Coal Field, have the honor to report that they have examined persons and papers in connection with the subject referred to their consideration, and that the following is a brief summary of the facts elicited by the inquiry : — There are at present two rights in force upon the Mount Rochfort Coal Field —namely, a lease of 400 acres at the Ngakawau, granted to Messrs. Field, Chambers, and Thorpe; and a prospecting license, extending over 0,720 acres, in the neighbourhood of the Wainiangaroa, granted to Mr. Albert Walker. Relative to the lease at Ngakawau; your Committee finds that in April, 1872, Messrs. Field and others applied to the "Waste Lands Board for a prospecting license, which application was postponed till the receipt of a report from Dr. Hector. 2Mh Juno. —" Dr. Hector's report not being yet received, the Board decided to issue a prospecting license for three months, considering that the issue thereof would not interfere with the adoption of any recommendations as to extent of lease afterwards to be granted." 30/ A September.- —The Board received an application from holders of the prospecting license for a lease of two square miles. "No report from Dr. Hector having been yet received, the Board decided that they would not definitely settle what quantity of land should be included in the lease, but requested the Commissioner to write to the Superintendent at Wellington on the subject, and propose at least 400 acres." 30lh October. —The Superintendent being present, the Board resolved, " That the Superintendent should be recommended to oft'er for their immediate acceptance a lease of from 30 to 40 acres without any special conditions ; but if they declined to take such lease, and wished to take a larger area, then that the following special conditions should be required." The conditions were, shortly, that a lease should be granted for a term of fifteen years upon a company being formed with a capital of £20,000; subject to the raising of a certain quantity of coal annually, the payment of rent, and the leaving of one or two chains between the lease and the river. Until the 4th of December, it appears that the Superintendent (in deference to objections raised by the chief of the Colonial geological establishment, Dr. Hector) was averse to granting a lease for any greater area than 30 acres. About the 4th of December, Dr. Hector " waived his objections," and the Superintendent then intimated to the Waste Lands Board, and to Messrs. Field and others, that a lease would bo granted upon conditions set forth in a letter dated 9th December, 1872. On the 20th of February, 1873, a letter was forwarded from the Colonial Secretary to the Superintendent, enclosing Dr. Hector's report, dated 19th February, 1873. In this letter, the Colonial Secretary remarks, —" Before taking any further action, or incurring the expenditure recommended by Dr. Hector, the Government is desirous of ascertaining what is the true position of the Coal Reserves, how far they have passed from the charge of the Provincial Government, and what steps the Government purpose taking to facilitate the working of them." It appears that both this letter, and the enclosed report, were " overlooked." On March 13th, another letter was sent from the Colonial Secretary's Office to His Honor the Huperintendent, in which it was stated that Mr. Chambers had applied for the construction of the railway to Mount Rochfort Coal Field, and furnished the Minister for Public Works with a copy of a letter from the Provincial Secretary, dated December 9th, defining the terms upon which it was proposed to grant a lease of 400 acres at the Ngakawau, and also stating,—" Before the Government can go any further in this matter, it is necessary that they should be informed of the real position of the Mount Rochfort Coal Reserves. As your Honor is aware, the Government are going to considerable expense in exploring the above reserve, and they view with surprise the proposal of your Government to grant a lease on such terms as those now submitted to them, as it would appear, from the best information now in the hands of the General Government, the portion of land now proposed to be leased is the key to the whole of this valuable coal field." No written reply appears to have been given to this letter; but His Honor has favoured your Committee with the following explanatory memorandum : — " The letter from the Hon. Mr. Waterhouse, dated 20th February, arrived during the absence of the Superintendent on the gold fields, and appears to have been overlooked. That from the Hon. Mr. Bathgate, dated the 13th March, was received shortly after the Superintendent's return; and as he proposed to visit Wellington in the course of a few days, he preferred to answer the letter in person, the more especially as it was of a character likely to give rise to an angry correspondence. tt—l. 4.