H.—No. sa,

The Committee will also be glad to receive any information not specified in the foregoing queries which may bear upon the subject. I have, &e, W. J. Steward, G. B. Barton, Esq. Chairman, Chinese Immigration Committee. Beply. Sir,— AA^ellington, 23rd October, 1871. I have the honor to acknowledge the receipt of your letter of the 7th September last, with reference to the question of Chinese immigration, and, iu reply, to submit the following statement for the consideration of tho Committee : — 1. The effect generally upon the gold fields of the influx of Chinese, with regard to tho development of their auriferous resources must necessarily depend upon circumstances —such as the relative number of Chinese and European miners, and the character of the particular field. The Chinese influence will not make itself felt on any gold fields in this Colony except those in which alluvial workings form the principal feature. The Chinese confine themselves almost entirely to " sluicing," and are consequently found in greater numbers in Otago than elsewhere in New Zealand. It may be said that the Chinese have, in one sense, done much towards the development of the auriferous resources of that Province, They have worked a large area of ground that would otherwise have remained unworked ; they have produced considerable quantities of gold ; they are ready purchasers of claims held by Europeans, for which they pay larger prices than would be obtained from Europeans. They apparently possess a spirit of org.anization which enables them to overcome the many difficulties iu their way, aud to accomplish results which tvould, under ordinary circumstances, lie beyond them. It is the common experience of European miners that, when organisation is attempted among them, it ends in failure. European miners associated together in large numbers rarely show much discipline; if they are successful, they are apt to neglect their work and to dissipate their money ; if they are unsuccessful, they become dissatisfied and long for other fields. The Chinese, on the other hand, display unlimited discipline, and their work is never interfered with, whether their fortune is good or bad. A large area of ground, which has proved ruinous to European association, has been known to yield excellent results to the Chinese. All this may be said to exercise some influence on "the development of our auriferous resources." But there can be no doubt that, unless the number of the Chinese is very limited, their real influence on the gold fields of Otago must be disastrous. The fact that large portions of our gold fields are rapidly falling into their hands is a proof in itself lhat they are displacing the Europeans. If this fact resulted in the discovery of new gold fields by the latter, there would be nothing to complain of; but it is not so. No new discoveries of any importance are likely to fake place in Otago. The consequence of the displacement is, that many European miners are lost to the district, if not to the country. The aversion with which they regard the Chinese is another circumstance which must prejudice the success of the gold fields, although its manifestations of feeling are very much more marked in some districts than in others. Many Europeans will leave a gold field because, as they say, it is infested with Chinese; and for the same reason, many will be deterred from seeking it. This aversion does not arise from mere sentiment or prejudice ; it is brought about by tho annoyance caused by the immediate presence of Chinamen, and the difficulties they create. The question is practically one of number. A few Chinamen would not be objected to, because they would be harmless, if not useful. But when they are counted by thousands, "the conflict of races " begins at once, and a national difficulty presents itself. If the number is allowed to increase in that ratio, the permanent success of the Otago Gold Fields will be seriously prejudiced. It must be borne in mind that these fields, unlike those of Australia, are very limited in extent, and are not capable of supporting an indefinite population. The limit is very soon reached. It is difficult to conceive any process by which the thousands of Chinamen now arriving in Otago can be healthily absorbed, without ruinous consequences to the geld fields. The Chinese who are already settled in the Province, and who may be said to have "interests at stake," are quite as alive to this difficulty as the Europeans. They do not wish to see their numbers largely increased, because they know there is not room for more. I believe they would readily assist in checking the influx of their countrymen, if any opportunity were afforded. With regard to " the general conduct of the mining population," the presence of Chinese is not at all calculated to create any alarm as to the morals of the community. There is nothing to show, at present, that the Chinese in this Colony are more addicted to immoral practices than any other races. The records of the Law Courts on the gold fields will be the best evidence on this point, and I think will acquit the Chinese of any marked tendency to crime or criminality. Their gambling is among themselves, and is consequently harmless to others. So long as they remain scattered in small parties over the country they are not likely to exercise any prejudicial influence on society. 2. Chinese labour is just as adapted for any description of handicraft as any other labour. I suppose that a Chinese tailor will sew a pair of trousers as well as a London tailor, although " the cut " might be different; and as to their capacity for cooking and market-gardening, abundant evidence may be found anywhere. 3. In the case of intermarriages with Europeans, the social results of such unions are not perceptible. The two races havo not yet intermingled so far as to justify an opinion ou the subject. 4. The relative cost of Chinese and European labour is as £1 to £3 a week. The relative cost ot living is as ten shillings to thirty shillings a week. 5. It is desirable, I should think, to take steps with the view of checking Chinese immigration. The step I would recommend is this : The Government of New Zealand should place itself in communication with the authorities at Hong-Kong and other Chinese ports, for the purpose of representing the actual state of affairs on the subject, and making it known among the Chinese themselves. There can be no doubt that they are now flocking to Otago under gross misapprehensions. They have been

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AD INTERIM REPORT (No. II.) OF THE