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Tenntson Inlet. An area of 7,084 acres, which had been set aside many years ago for granting to landless Natives of the South Island, was found to be unsuitable for occupation in small holdings, and by section 14 of the Native Land Amendment and Native Land Claims Adjustment Act, 1919, provision was made for awarding monetary compensation to the Natives in lieu of the land in question. The Scenery Preservation Board recommended that this area, which comprises some of the most beautiful scenery in*the Marlborough Sounds, should be set aside as a scenic reserve. It is still largely in the same condition as when Captain Cook visited New Zealand in 1769. On the sea frontage are a number of very picturesque bays and indentations with a magnificent background of high hills densely covered with indigenous forest, whilst native vegetation extends to the water's edge and enhances the primeval attractions of this inlet. Lake Rotoiti. As mentioned in last year's annual report, the Ngati-Pikiao Tribe, near Rotorua, had donated to the Crown certain land fronting Lake Rotoiti for reservation for scenic purposes. A meeting was held at Otaramarae, on the shores of Lake Rotoiti, on the 29th January, 1921, when Morehu te Kirikau, on behalf of the Ngati-Pikiao Tribe, and in the presence of a large assemblage, formally handed over the lands to the Hon. Mr. Guthrie, Minister in Charge of Scenery Preservation, and the Hon. Sir Francis Bell, former Minister in Charge. The Hon. Mr. Guthrie, on behalf of the Government, acknowledged the handing-over of the areas, and assured the Natives that their wishes would be given effect to by the Government and the land preserved as an inalienable heritage by the people of New Zealand for all time. The areas, fifty-one in all, have been surveyed, and a Proclamation in the Gazette of the 14th April last defines the lands which had been ceded to the Crown. The renowned scenic attractions of Lake Rotoiti are therefore permanently reserved for all time, and it is to the greatest credit of the Ngati-Pikiao Tribe that they presented such a magnificent gift to the public. Lake Okataina. Subsequent to the handing-over of the Rotoiti scenic reserves, Hemana Pokeha, addressing the Minister on behalf of the Ngati-Tetakainga and Ngati-Tarawhi Tribes, stated their intention of making a formal presentation to the Government of scenic areas along the shores of Lake Okataina. The Minister gratefully acknowledged the offer, and promised that every care would be taken by the Government to have the land surveyed in accordance with the wishes of the Native donors, and to preserve the land in a manner calculated to give the best effect to their wishes. Arrangements are now being made to carry out this undertaking. In addition, the Ngati-Rongomai Tribe, owners of the Waione Block, through which the road from Lake Rotoiti to Lake Okataina passes, held a meeting at Otamarae on Saturday, the 21st May, and announced their intention of donating areas of forest-covered land on both sides (if the road, on the same conditions as the Ngati-Pikiao Tribe handed over the Rotoiti reserves. The committee to administer the lands is to comprise Tiakiawa Tahuriorangi, Morehu Kirikau, Timi te Po, Te Puehu, and Horomona Himiona. Dominion Scenic Reserves. By referring to attached schedule it will be seen that 528 scenic reserves, comprising a total area of 313,233 acres, have now been set aside for scenic, historic, and thermal purposes since the passing of the Scenery Preservation Act, 1903. In addition to this large area some 50,000 acres had previously been reserved for similar purposes under the provisions of the Land Act, and these will be brought under the provisions of the Scenery Preservation Act. Although these reserves contain some of the most beautiful and unique scenery of the Dominion, it may be pointed out that seven national parks, comprising 2,771,202 acres, have also been set apart for the preservation of scenery, and a list thereof appears in the schedule. Two of these extensive reservations—namely, the Egmont and Tongariro National Parks—are situated in the North Island, and are amongst the most popular resorts of pleasure-seekers and mountain-climbers, The other five comprise the Hooker Glacier, the Tasman Park (around Mount Cook), Arthur's Pass and the Otira Gorge, and the West Coast Sounds National Park. It will therefore be seen that in reserving an area of over 3,000,000 acres the successive Governments of New Zealand have recognized the importance of preserving the unique and beautiful scenery of the Dominion for the enjoyment of the present and future generations. Inspection of Reserves. In accordance with what has proved to be an excellent practice, gentlemen who reside in the vicinity of scenic reserves and arc willing to keep an eye on them have been appointed honorary Inspectors under the Scenery Preservation Act, and thus given power to exercise supervision. In addition Crown Lands Rangers and other officers of the Department are instructed to visit the reserves from time to time when their official duties take them to the locality. ExPENDITUIiE. The expenditure during the year was .£3,826, out of which the cost of acquisition of lands amounted to £3,031. By a reference to the appended table it will be seen that, out of the £100,000 authorized under the Scenery Preservation Act, £94,000 has now been raised. As was the case during the