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No. 25. The Engineer-in-Chief to the District Engineer, Dunedin. (Telegram.) Wellington, Bth August, 1877. Minister requests you to see the Harbour Board re letting part of station ground. He thinks there is some mistake, and authorizes you say that no arrangements can be entered into which would interfere with the Eailway Station. W. N. Blair, Dunedin. John Carruthers.

No. 26. The District Engineer, Dunedin, to the Engineer-in-Chief, Welhngton. Public Works Office, Dunedin, Bth August, 1877. Otago Harbour Board Leases. Eeferring to my telegram of yesterday, I beg to forward a plan of the land between Eattray and Jetty Streets, the lease of which is advertised to be disposed of by auction on the 7th September. The plan also shows the railway lines and sidings as last laid down in Wellington, and the land reclaimed specially for railway works by this department. Tou will observe that the land proposed to be leased embraces many of the lines and sidings and a large portion of this reclamation. The plan shows the boundary of railway land as originally determined between the Government and the Harbour Board, which line corresponds with one on the Board's plan, and I understand this is the plan approved by His Excellency the Governor. In the recent negotiation between the Government and the Board it was proposed to move the goods shed altogether, in which case less land would be required at the corner of Eattray and Crawford Streets, and a sketch-plan was sent you of the land required when these alterations were effected. It is from the sketch-plan that the Board lias taken the data from which their leasing plan is prepared. I need scarcely point out that it is impossible to do with less land than what was originally determined on except the goods station is entirely removed ; consequently the Board should at once be prohibited from proceeding with the sale of the leases. The Engineer-in-Chief, Wellington. W. N. Blair.

No. 27. Memorandum for Engineer-in-Chief re Harbour Board Eeserves. Public Works Office, Dunedin, 17th August, 1877. In accordance with the instructions above quoted, I called on the Secretary of the Harbour Board, who requested me to communicate in writing. This I did, a copy of my letter being enclosed. The subject was considered at a meeting of the Board yesterday, and a report of the Eeserves Committee (copy also enclosed) adopted declining to alter the leasing plan. Erom the newspaper report it seems the Board is about to communicate direct with the Government on the subject, but the Secretary has not said so in his reply to me. He simply encloses a copy of the Eeserves Committee report. I understand that the Board consider they have permission to lease the land in question from a telegram sent by the Hon. George McLean. I have seen this telegram, and, taken in connection with the correspondence that preceded it, I cannot construe it into any such permission. All that it implies is that the land between Eattray and Jetty Streets will be required when the station is removed and other permanent arrangements made. Under present circumstances it is absolutely necessary to retain at least all the land south of Eattray Street reclaimed by this department (see plan sent on 6th August). The Crown Solicitor advises that, if the Government wishes to prevent the leasing of the land in question, all that is required is to give the Board notice, under clause 33 of " The Otago Harbour Board Ordinance, 1874," that no lease thereof will be sanctioned by His Excellency the Governor. I omitted to say that the temporary store building and all the stores of this department have lately been removed on to the land that is proposed to be leased ; they are situated on the southern side of Eattray Street between the temporary engine-shed and the siding into the permanent engine-shed : however, their removal again is not a serious matter when compared with the evil of being cramped up and cut off from the jetty, the main objection to the leasing of the land. The Engineer-in-Chief, Wellington. W. Ts. Blair.

Enclosure 1 in No. 27. The District Engineer, Dunedin, to the Secretary, Otago Harbour Board. Sir, —> Public Works Office, Dunedin, 10th August, 1877. I have the honor, by direction of the Hon. the Minister for Public Works, to direct your attention to the plan of the lands between Eattray and Jetty Streets, now to be leased by the Harbour Board. According to that plan it is proposed to lease a large triangular piece at the corner of Eattray and Crawford Streets, now occupied by the railway works, and which will be required for railway purposes while the station remains where it is. The land referred to is within the boundaries of the railway reserve, as originally determined between the Government and the Harbour Board, and most of it was reclaimed by the department. The Minister for Public Works authorizes me to state that no arrangements can be entered into which will interfere with the railway station.

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