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A.—2

Enclosure. Sib,— Admiralty, 11th June, 1902. With reference to your communication of 24feh April last (No. 14632), forwarding copy of correspondence relative to the use of Bluff Harbour by vessels of large tonnage, I am commanded by My Lords Commissioners of the Admiralty to request that you will convey their thanks to the Secretary of State for the Colonies for the information furnished, and to state that special note has been taken of the fact that arrangements are now made for taking pilots outside to meet ships unacquainted with the port. I am, &c, The Under-Secretary of State, Colonial Office. Evan Macgregor.

No. 26. (No. 59.) My Lord, — Downing Street, 25th June, 1902. I have the honour to transmit to you, for the information of your Ministers, the paper noted in the subjoined schedule. I have, &c, J. CHAMBERLAIN. The Officer Administering the Government of New Zealand.

Enclosure. Ebpobt on Chatham Islands. Sir,— H.M.S. " Phcebe," at Wellington, 16th April, 1902. In accordance with your orders of the 29th March, 1902, I have the honour to submit the following report (in triplicate):— Main Island. —There appears little to add to the comprehensive account of Lieutenant and Commander Bain, as brought up to date by Commander Bolleston's report of last year. The land has changed hands considerably recently through financial failures, chiefly owing to over-specula-tion. The population (both white and Native) continue numerically much the same, nearly half the population being white. The homesteads, scattered at large distances apart over the island, have remained much the same in number for the last twenty years. The fall in prices in wool has naturally considerably affected the position of the large runholders; but there appears nothing approaching to real poverty, though there is no wealth. The district to the southward of Waitangi is extremely poor and worthless, and is known as the " tobacco country," from the fact of it having been sold by a Native for a few sticks of tobacco. The land to westward and northward of the great lake is good grazing country, as is the south-eastern peninsula, but round Port Hutt and on the northern shores of Peka Bay it is arid and only produces low scrub. There is one homestead on the shores of Port Hutt (Mr. Papin, German, who keeps a small flock of sheep but does not seem to do much business). The best land is undoubtedly around Waitangi, where the grazing is rich and abundant. Herds of wild horses and cattle are to be found in some parts. There are no roads, only tracks, unfit for wheeled vehicles, of which latter there are only two in the island. All business is done either on horseback or by a " sand-sleigh " peculiar to the place. I was unfortunately unable to visit Pitt Island on account of bad weather, but the reports I heard were favourable. The community there (about fifty whites) are in much closer touch, and I understand that land there is better, though nearly half the island requires clearing. It is a matter of regret that the two islands should be so much cut off. The passage across the stormy and tide-swept straits is not safe for an open boat except on rare occasions, so that the sometimes infrequent visits of the steamer from New Zealand afford almost the only opportunity of communication. A fatal disaster, by which four lives were lost, occurred not long ago through some Pitt Islanders attempting the passage, and no anxiety for their safety was aroused for some time, as the Pitt Islanders did not know of their non-arrival, and the Waitangi people were not expecting them. The export of sheep has decreased considerably this season on recent years, viz., from 12,000 last year to 9,000 this season. To develop the islands roads are much required, as large tracts are swamps, dangerous to those unacquainted with the paths across. I would also suggest that a small steam-vessel of about 30 tons would be of the greatest service, as she could be used to communicate with Pitt Island, and to collect the cargo at Waitangi from the numerous points around the island, where the New Zealand steamer now calls, thus 4—A. 2,

Date. From To Subject. 6th April, 1902 ... Commander Addineton F. Eear-Admiral Sir L. A. T. Beaumont, K.C.M.G. Eeport on visit to the Chatham Islands.