G.—2(V

3

willing to lease at present 5,000 acres with the springs, and more if required. Some of the chiefs are also letting, on long leases, blocks of land for sheep-runs. Henare Potae and Iharaira Te Houkamou set the example, and others are following it. This will be a great means of advancing the prosperity of the district. The obstacles which have for some time past been thrown in the way of the completion of the bridle-track between "Waiapu and Hick's Bay, are at length removed, and the work will be proceeded with at the commencement of spring. The ferry across the Waiapu River has also been established. The want of this has hitherto rendered the travelling on this part of the coast, particularly during winter, most hazardous, and many lives have been lost. The health of the Natives has been tolerably good during the last year, but a resident medical man is much required, there being none between Turanga and Opotiki, a distance of 200 miles. This duty I have, for the last eight years, performed, as much as lay in my power; but I have frequently had occasion to feel that the office was attended with too much responsibility for a non-medical man. The four schools of Waiapu, Tokomaru, Aku Aku, and Kawa Kawa, are completed, and the two former have been opened for some considerable time. The pupils, who are numerous, are progressing very favourably, and. in some branches show much aptitude. The teachers are zealous in the discharge of their, in some respects, rather onerous duties. The chief Iharaira Te Houkamou, of Hick's Bay, is at present making great preparations for a feast on a grand scale, which is intended to take place during the month of August next. The Natives, as far as the Kaha, on the Bay of Plenty, are engaged in preparing large quantities of fish, and the people of this district are collecting the requisite supply of birds of various kinds. The occasion is to be marked by the erection of a new flag-staff with the Queen's flag, and a general declaration of loyalty to her person and Government. I must, in conclusion, bear my testimony to the very great good which the circulation of the Waka Maori newspaper is effecting, as a means of information and instruction. Its arrival is always most eagerly looked for, and it is most diligently perused in every settlement throughout the district. I trust that during the following year there will be a large additional number of subscribers to this really useful paper. I have, &c, J. H. Campbell, The Under Secretary, Native Department. Eesident Magistrate, Waiapu.

No. 3. The Eesident Magisteate, G-isborne, to the Under Secbetaey, Native Department. Sie, — Eesident Magistrate's Office, Gisborne, 23rd June, 1874. In sending in the usual annual report on Native matters in this district, I have the honor to state that there is nothing of general or political importance to bring before the notice of the Government. The attention of the great body of the Natives in this district appears to be almost exclusively devoted to local interests, more especially to the land question. Although formerly averse to having their lands dealt with by the Native Land Court, they appear now anxious to avail themselves of it, with the expectation that it will put an end to the unsatisfactory state of aifairs that has so long existed. This anxiety for a sitting of the Court is increased and upheld by the number of applications from Europeans to lease lands in this district, thus holding out to the Natives a prospect of a good income from rents. The subdivision of their lands is also very much desired. The sanitary condition of the Natives has been very good during the last year, and there appears to have been no deficiency of food, or at any rate of the means of obtaining it. Owing to this and the influx of some of the former inhabitants who had been driven out by the disturbed state of the country, I am of opinion that the population has increased during the last three years. I cannot speak too highly of the manner in which the Natives submit to the operation of the European laws, some of which must appear to them strange, if not incomprehensible. In their disputes amongst themselves they invariably prefer submitting their differences to the Court rather than to their runangas. As there has not been any large and sudden expenditure of Government money latterly, drunkenness has not been so prevalent; but I fear their sobriety consists in their inability to get drunk for want of the means. The Native schools have not progressed so satisfactorily in this immediate locality as was at one time hoped, but I believe this is owing to local circumstances, which have to a certain extent been recognized, and can, it is hoped, be remedied. On the whole, I think the Europeans of the district may congratulate themselves on the amicable relations that exist between them and the Natives, and I believe the Government has no reason to complain of their want of loyalty. I have, &c, W. K. Nesbitt, The Under Secretary, Native Office, "Wellington. Eesident Magistrate. By Authority : Geobge Didbbubt, Government Printer, Wellington.—lB74. J'rice 3d.]