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besides charred totara logs on the ranges and the scrub and driftwood on the river islands. Peat is found on the hills between Kakaunui and Maerewenua. Wood being so scarce, I deemed Te Warekorari's assertion that there was coal one day's journey inland of his kaika, although contradicted by the other Natives, worthy of investigation. I therefore went up the South Bank through the gorge to J'e Awawakamau where we crossed the river on mokis, and found the lignite on the Pukewhinau stream, made a large fire with it and brought away about 3 cwt. of specimens, which I left at Punaomaui and Tauhimi. I also arranged with Warekorari for the delivery of it at stations along the river, which he will effect by means of large mokis carrying upwards of a ton; the price per ton to be fixed by me. To aid me in fixing the price it was necessary to have a more distinct idea of the difficulties of the moki-navigation of the Waitangi. I therefore came down in a moki the voyage or " rere" from Pukewhinau to te Hakaturamea occupying one hour and that thence to te Punaomaru four hours. 1 propose to fix rates, varying according to the distance, from £1 to £3 per ton for the lignite delivered at the river's side at places which drays can reach. A3 the lignite is perhaps not in my district, I would request the sanction of the Governor for this arrangement, and that His Excellency would also be pleased to confirm my direction that no Native but Warekorari be priviledged to work at the lignite in question ; should it ever be thought worth working by Europeans, this arrangement would not be an obstacle to their obtaining the necessary license. Lignite also, occurs high up the Hakaturamea; and I may further mention that from an intelligent Native who accompanied me down the coast in 1848, I learn the existence of beds of lignite, some of good quality, commencing near the Elephant (Pohowaikawa) and running thence about N. N. W., to the upper Waihau country. I have the honor to forward small specimens from Pukewhinau which you will perceive is not of first rate quality3. Timber must be imported, or obtained from Blackwood or the woods on runs Nos. 11 & 12. The great forest, though clothing three sides of Hawea and Wakatipu, comes no lower than the upper course of the tributaries of the Waitangi Lakes which are themselves woodless. Much of the limestone is fit for building, and cleavable slate is reported inland. 4. Inland Transport. The plain commencing at the mouth of the Hemans continues without interruption to the Gorge about 30 miles, passes through it in two terraces from 1 to 200 yards wide and thence stretches, widening and narrowing alternately, to the lake, whither I should have no hesitation in taking a dray at once. Just below the Piriamokotaha (an impassible cliff on the North Shore) the river narrows, between vertical state cliffs of 20 to 30 feet high, to less than 100 yards. It is evident at a glance that this is the place for a bridge, and the two terraces form a beautiful site for a town which should eventually be one of the most important inland Towns in the Island. This spot is about North from Mount Domett, the snowy peak mentioned in a former report. 5. Shipment. This must be effected at the mouth of the Hemans which, sheltered on the South by Cape Waubrow and on the North by point Sigourney, a low level promontary is, and having what is reported to be a good roadstead, a really valuable place on a harbourless coast. When I was there the wind was N. E. mod., and the sea in the bight so calm that a small canoe might have landed with perfect safety. There is a second boat harbour at the Cape practicable when the Hemans landing is not. 6. The conjecture which I hazarded in a former report that the remains of the Moa would pro>bably be found in a district so suited to the habits and wants of that bird, has been borne out by our discovery near Cape Waubrow of a forgotten Kaika of the aboriginal Waitaha tribe, the unaus filled with bones and eggshells of Palaptaryx aptornis, &c, burnt stones, charcoal, and remains of dogs, seals, &c, (Signed) Walteb Mantell, Crown Land Commissioner. Post Script.—I should have mentioned that Wanganui natives, with such canoes as they use on that river, would I think not hesitate to navigate the Waitangi. The canoes could be poled or tracked up the side channels. There is not now a canoe on the river. Civil Secretary's Office, Wellington, 6th April, 1853. Sib,— In reply to your letter of the 19th ultimo, reporting on the general capabilities of the district on the banks and vicinity of the Waitangi river, I have the honor to request that you will inform the Native Chief Te Warekorari that his conduct throughout the whole of the negotiations for the sale of this district has been such as to be highly gratifying to His Excellency the Governor ; who trusts that he will continue to set the good example he has hitherto done to the rest of his countrymen ; and that, as a proof of His Excellency's approbation, you have been directed to make him a present. You will therefore have the goodness to procure and present to this chief, such articles as, in your opinion, would be most agreeable to him ; and for this purpose you are authorized to incur an expense not exceeding ten pounds sterling. His Excellency further approves of the extent of the reserve : viz., one hundred and fifty acres, recommended by you to be made for Te Warekorari and his family ; and you are further directed to carry out your recommendation with as little delay as possible. I have, &c, Walter Mantell, Esq, (Signed,) Alfbed Domett, Commissioner, Otago. Civil Sscretary,