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that account, and on account of the distance of the site and the difficulty of keeping up communication regularly otherwise than by steamer. Akaroa. —ln the early p«rt of March I visited the site of this lighthouse at Akaroa Head, and marked off the positions of tower, dwellings, &c.; also staked out the line of road and exact position of landing-place, after determining on the manner of landing material and stores. The work of forming the landing-place and the road will be undertaken in the spring; the lantern and apparatus have been ordered from England, I have, <&c, John Blackett.

Enclosure 2. REPORT ON SCHOOL EOR YEAR ENDED 30th JUNE, 1877. The Managee, Naval Training School, Kohimarama, to the Secretary of Customs (Marine Branch). Sir, — Naval Training School, Kohimarama, 30th June, 1877. I have the honor to transmit, for the information of the Hon. the Commissiouer of Customs, the following report on the above-named institution for the past twelve months: — The health of the boys has beeu satisfactory. The report of the medical officer of the institution is attached. Table A shows the educational progress during the year. In seamanship, pulling in boats, and tailoring the progress has been satisfactory. Table C contains list of the clothing made and other work done in the school. By making the clothing ourselves, which is very well done under the efficient management of Mrs. Speight, a considerable saving is effected. Thirty boys have been admitted and 31 discharged, leaving 79 now on the register, 3 of whom are out on license. Three of the time-expired boys were out on license at the termination of their period of detention, and still continue with the same employers. Table B shows the visits of clergymen for Divine service and religious instruction. On the whole, the conduct of the boys has been satisfactory, "looking to the antecedents of most of them;" but the class sent here for some time past has not been as good as in the earlier days of the school. There have been 41 cases of escaping from the school, confined to 19 boys, 6 baring totaled 23 offences of this nature. Three, the last time they went, stole a boat, the property of a person residing near the school, for which they were sentenced to imprisonment in Mount Eden Gaol. The conduct of these had for a long time been extremely bad. A very good crop of potatoes was obtained last season, which would have pretty well supplied the school for the twelve months, but they were, unfortunately, pitted too soon, by which means the greater part were destroyed. There was, however, a good profit on the transaction. In February last, I sailed in the Melanesian Misssion schooner " Southern Cross," commanded by Captain Bongard, with twenty-six boys, for a cruise to southern ports. AVellington was visited twice and Port Chalmers once. It was intended to call at Lyttelton, but Captain Bongard found himself so pressed for time, that he could not do it. The conduct of the boys during the cruise was very good, and they showed great ability and willingness in working the vessel. I attach copies of letters addressed to me by his Lordship the Bishop of Melanesia and Captain Bongard bearing on this subject. I had hoped to have placed a number of the boys as apprentices to the sea during our stay at the southern ports, but only succeeded in one instance, in which the New Zealand Shipping Company (Limited), were the employers. The manager of this Company informed me that it was intended to get one boy from this school into each of their vessels, but up to the present time they have only taken two. The manager of the Union Steam Shipping Company (Limited), was desirous of putting some of the boys in their vessels, but there was great disinclination on the part of the masters, which resulted in none being taken at the time, but one has recently beeu taken by that Company. Prior to her departure for the islands, one boy was apprenticed to the Bishop for service in the mission schooner. Table I shows the number of boys apprenticed during the year, and the trades to which they have been indentured. Properly-trained instructors are greatly needed; and if a small schooner were attached to the school it would be a great assistance in training the boys. The present stationary vessel, owing to the very bad state in which she is, is of very little use. I think if a penal school were established to which the worst class of boys could be sent in the first instance, and those whose conduct was such as to render it unadvisable to keep them in the ordinary schools could be transferred, it would result in great advantage. The effect of expulsion, as provided for by section 39 of the Act, is bad. lam satisfied that many boys commit offences with the hope that they will, by that means, get expelled. The limit of twelve years in sections 37 and 38 should, I think, be removed. It has been openly stated that boys under that age run away for the sake of the change, knowing they cannot be dealt with by a Magistrate, and not caring for any punishment I can award. The appearance of the boys, I think, shows that they are well fed. The cost of the ration for the past twelve months has been a very small fraction over 6d., which includes fuel, lights, and soap. I have, &c, G. R. Breton, Manager.

Dr. Goldsbro' to the Secretary of Customs (Marine Branch). Sic,— Parnell, Auckland, 30th June, 1877. I have the honor to state that during the past six months ihe health of the boys in the Naval Training School at Kohimarama has, on the w-hole, been very satisfactory. There have been the usual amount of minor accidents incidental to schoolboys, but none of a serious character.