E.—4,

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Enclosure in No. 16. Sir J. Coode to the Hon. the Commissioner of Customs. Dunedin Harbour. Auckland, 25th May, 1878. Having carefully considered the question of the probable effect of the reclamation proposed to be made in connection with the now harbour and dock-works at Dunedin, I am of opinion that a reclamation to the extent contemplated by the plan of 20th February last would diminish the volume of tidal water to such an extent as to jeopardize the maintenance of the same depth of water on the bar as hitherto existing. Understanding that, pending the report on the matter generally, an expression is desired of my view with respect to the extent of reclamation that may be safely undertaken along that part of the foreshore immediately to the south of the present railway station, I have to recommend that the area comprehended between the eastern front of Crawford Street and a line (measured at a right angle) 500 feet distant therefrom, and parallel thereto, should be appropriated for railway-station purposes. The question of the position, extent, and character of the basins and wharves on the harbour-side of the railway station, and the appropriation of the south-western shore in such a manner as will be best suited for the trade of the port, will be dealt with in mygeneral report on the harbour works, I should add that measures adapted to counteract any prejudicial effect upon the bar, arising from a diminution of the tidal scour, could only be undertaken at, or immediately adjacent to, the bar itself, and any such as would be attended with a reasonable prospect of success would necessarily, from the physical conditions at the entrance, be so extensive and costly that they should not be entertained simply with a view of counteracting the effect of large reclamations within the harbour. The Hon. the Commissioner of Customs, Wellington. Jno. Coode.

No. 17. The Engineer, Otago Harbour Board, to the Colonial Marine Engineer. (Telegram.) Dunedin, 7th June, 1878. Copy Sir J. Coode's interim report received through Marine Department. Board thinks Sir John has made mistake and written Crawford Street instead of Castle Street. The latter, Castle Street, is what he told the Chairman, and the Chairman of Works Committee, he intended to recommend. If Crawford Street is meant, there is no necessity to get His Excellency's assent, as suggested in Government letter, as it is in such case present plan already sanctioned. Please reply early. John Blackett, Esq., C.E., D. L. Simpson, Marine Engineer, Wellington. Engineer, Otago Harbour Board.

No. 18. The Colonial Marine Engineer to the Engineer, Otago Harbour Board. (Telegram.) Wellington, 10th June, 1878. Be Sir John Coode's memorandum on Dunedin Harbour: Crawford Street is the correct reading, as personally explained to me by Sir John. D. L. Simpson, Engineer, Harbour Board, Dunedin. . John Blackett.

No. 19. The Officer in Charge, Marine Department, to the Secretary, Otago Harbour Board. Sir, — Marine Department, Wellington, 20th June, 1878. I have the honor to acknowledge the receipt of your letter of the 12th instant, relative to Sir John Coode's interim report on Dunedin Harbour. In reply, I have to inform you that this letter has been submitted to the Hon. the Commissioner of Customs, by whom it has been referred to the Marine Engineer who accompanied Sir John Coode when visiting the different ports of the colony. The following is a copy of Mr. Blackett's memorandum on your letter : — "I think the Harbour Board lay too much stress on the fact that Sir John Coode recommended a site for a railway station. He appears to have accepted as a fact agreed upon that the railway station should be parallel to Crawford Street, as shown on the lithographic plan submitted to him as one agreed to at a Conference held 19th February, 1878 ; and his recommendation simply amounts to this —that its position is too far out into deep water. " I cannot understand the assertion of the Board that Sir John expressed his agreement with this plan in Dunedin, as before he left that place he distinctly made me aware of his opinion that the proposed reclamation at this place encroached too much on deep water, and that he should recommend adherence to the original plan— i.e., a line about 500 feet from Crawford Street and parallel to it. " After leaving Dunedin he never adverted to the subject, but wrote in Auckland a memorandum, which corresponded in effect with his verbal expression of opinion in Dunedin to me." I am also to add that the Government have had no opportunity of ascertaining the grounds upon which Sir John Coode's opinions have been formed, but they are satisfied such opinions will be found, to be sound. 4—E. 4.