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In case of the Government purchasing the property, I would suggest that it be taken over as from the Ist July last, one of the dates the rents ur.der the leases and subleases are payable. I would point out the following advantages possessed by the property : It is particularly well situated for settlement purposes, being bounded on the north by the Mokau River, on the south by the Mohakatino River, and on the westward sea. The Mokau is navigable as far as the coalarea by any vessel that can cross the bar, and by canoes for several miles beyond. The Mohakatino can be navigated by boat for about five miles, and after that by canoes. These rivers give easy access to the property, and would be invaluable to settlers as a means of sending their produce to market at a reasonable cost. On the Mohakatino there are several very picturesque waterfalls, and some caves which will probably become of interest to tourists. Public roads connect Mokau with Waitara and New Plymouth to the south, and with Awakino and thence to the Main Trunk Railway at Te Kuiti on the north. A bridle-track for about nine miles has been cut on the north bank of the Mohakatino. Your Government are now forming a road for many miles on the south bank of the Mohakatino, and this will be available for settlers on the north side, as the river is very easily crossed or forded. The cost of survey of Block If (constituting about one-half of the property) can be saved if the survey made by Messrs. Richardson and Reardon is adhered to. The plan of the survey has been deposited with the Crown Lands and Survey Office for use of that Department. This would mean a saving of at least £650. In the event of the Government becoming the freeholders, and of its purchasing the lease, the liability for taking over the improvements existing at the determination of the leases (except in the case of those sections already let) could be extinguished. When visiting Mokau and its neighbourhood, although it was not known that I was interested in the property, I heard on all sides a strong expression of desire that the land should be taken over by the Government and opened for settlement. There is a large quantity of limestone of good quality on the property. The coal-bearing area of the land was some years ago inspected by a very English mining authority, who reported several seams of coal showing above the level of the river, and he estimated the coal-bearing area at about 23,000 acres, containing 140,000,000 tons. This coal would meet with a large demand in New Plymouth and adjacent places, including the City of Wellington. It is particularly adapted for use in suction-gas plants, which are now displacing steam-engines (see article in Mines Record, No. 10, Volume 10). This coal should fetch at least 255. to 275. 6d. per ton. The cost of getting and putting on board, freight, wharfage, unloading, weighing, &c, was some time ago estimated at from 17s. 3d. to 17s. 6d. per ton. It is very probable that a better quality of coal would be procurable at greater depths. The coal is not very far distant from the Main Trunk Railway, and could be connected therewith by a branch line if considered desirable in the future. The price asked averages only about 7s. 6d. per acre, and this includes the coal-beds, which must be of great value if properly worked. An output of coal of only 500 tons per week, if sold at ss. per ton profit, would repay the whole cost of purchase of the lease in about three years. As lam now in the colony solely for the purpose of disposing of the above estate, I would ask you to kindly let me have an early intimation of your Government's decision in regard to this offer. This offer is made confidentially, and on condition that, if the Government do not accept same, the particulars thereof be not disclosed. I have, &c, The Hon. Minister of Lands, Wellington. H. Kemp-Welch.

No. 57. Office of the Minister of Lands, Wellington, 23rd August, 1907. Dear Sir c Lease of Mokau-Mohakalino Blocks. I beg to acknowledge the receipt of your letter of date the 22nd instant, forwarding draft of the title of this property, which you are desirous should be purchased by the Government. To reply I have to inform you that, inquiries are being made into the position of the property, ana on receipt of report from the officers of the Department I will reply to your communication. Yours faithfully, H. Kemp-Welch, Esq., Wellington. Robert McNab.

No. 58. Department of Lands, Wellington, 3rd September, 1907. Sir, — Re Lease of Mokau-Mohakalino Block. Referring again to your letter of the 22nd August re the above blocks, and my reply to you of the 23rd August, the opinion of the Crown Law Officers was obtained as to whether the Government was in a position to negotiate for the purchase of these blocks, and the Government have been advised that they cannot legally purchase any of the blocks in question, and that, owing to the complicated titles, the Crown Law Officers advise the Government not to attempt to hamper themselves with the purchase of any of the blocks referred to. Under these circumstances the Government have decided not to attempt to acquire any of the Mokau-Mohakatino subdivisions. I have, &c., Robert McNab, H. Kemp-Welch, Esq., Wellington. Minister of Lands.