G.—2.

8

plicants of the Native race. Probably this may be done in one or two cases next year. lam not apprehensive, however, of any great evil arising from it. Te Waru and his people (surrendered rebels of the Ngatikahuhunu) have lately been removed from Maketu to the Waiotahe Eiver, near Opotiki; where, as they appear industrious people, I have no doubt that they will prosper. The Arawa militia are still stationed at Ohiwa, where their presence is undoubtedly an advantage. The Upokorehe and Eakuraku's small hapu of Urewera are living at Ohiwa: the former are progressing, the latter appear not to be very fond of hard work. Of the Whakatane Natives, the Ngatipukeko have now left their pa at Whakatane, and have gone again to reside up the river, as they did before Te Kooti's raid, and are prospering there. The Ngatiawa do not appear, during the past year, to have been so much interested in political questions as formerly. I regret that the crops of the Whakatane division of the tribe have suffered a good deal from the dry summer, and I fear they will be somewhat impoverished by the large number of visitors they are now entertaining to assist in erecting Apanui's large carved house at Whakatane. It only remains for me particularly to notice the TJrewera. The only political movement of any importance which has occurred in this district during the past year emanated from them. They have been endeavouring to induce the neighbouring tribes (especially the Whakatohea) to join them, 1. In demanding the return of the confiscated lands; and 2. In a sort of land league, by which the Urewera were to be the guardians of the "papa tipu " (hereditary land) of all the tribes who joined them, as well as of their own; the object being to prevent road-making, selling and leasing of land, &c. This they called the " Union of Mataatua," i.e., a league of all the tribes who are supposed to have come to New Zealand in that traditional canoe. As I have so lately had the honor to report to you on the Uriwera meeting which took place at Buatahuna to discuss these questions, I need not allude further to it here. A meeting has since been held at Te Waimana to discuss land leasing, and was attended by most of the Uriwera chiefs. The Ngatiawa, Whakatohea, and a few of the Uriwera are anxious to lease the Whakatane and Waimana valleys to Europeans for grazing purposes. Tamaikowha called the meeting to discuss the question, but the bulk of the Urewera decided against leasing. After the meeting, Kereru, Te Ahikaiata, and other chiefs of the Urewera came on to Opotiki to visit me. It is evident that this tribe are by degrees throwing off their sulky reserve, and mixing more freely with Europeans and the loyal Natives. This will, I believe, have a good effect, and although they are still opposed to road-making, land-leasing, English law, &c, being introduced within their boundaries, yet I think that, with careful management, they will before long submit to Government rule. It is perhaps worthy of remark that they sent agents to attend the Land Court which lately sat at Opotiki, to watch proceedings and to point out the boundaries of their claims, although they affect not to acknowledge the jurisdiction of our Courts. Of the tribes generally within the district, I take leave to remark that they appear well satisfied with the present Native administration of the Government; that they approve of the principles of the new Native Lands Act, although they have at present had no experience of its working ; that they are anxious for the establishment of the proposed Native Councils; and that they take increased interest in Parliamentary representation. It will not escape your notice that 736 Native claims to be placed on the electoral roll have been received this year by the Eegistration Officer for the East Coast district. I also observe an increased disposition to bring their disputes to the Magistrate's Court for settlement, as many as forty civil cases having been heard by me during the year 1873, in which either one or both of the parties were of the Native race; and this in spite of the high fees payable under the Resident Magistrates Act, which, in the case of Natives, are frequently prohibitory. There is a great desire on the part of the chiefs to possess some digest of English law and the procedure in Magistrates' Courts in the Maori language. I am frequently asked for copies of Nga Tare o Ingarani, and also of Judge Fenton's book on English law, both of which, I believe, are out of print. IV. — Public Works Undertaken hy Natives. Since my report last year, various public works have been carried out by the Natives. The Whakatane and Te Teko Eoad is under formation by the Ngatiawa and Ngatipukeko Tribes, assisted by other neighbouring hapus. About seven and a half miles have been formed; but on account of some five miles being through swamp, where it is impossible to work in the rainy season, this road will not be completed until next summer. The same tribes propose undertaking a portion of the road running up the Whakatane Valley to Euatoki. On the Opotiki and East Cape Road, a bridle path has been formed by the Whanau-a-Apanui, under Te Tatana, from Maraenui to Omaio, five and a half miles. This was formerly a very bad bush track, and much dreaded by travellers down the coast, but is now an excellent road for horsemen. The survey has been pushed on to Raukokore, and I believe the Te Whanau-a-te-Ihutu will shortly be working on the continuation of this road. They are at present inclined to demand an excessive price for road-making, but this will doubtless ultimately be arranged. This road is a most important one, as connecting Opotiki with the settlements all along the coast to the East Cape, with Waiapu, and with the road works being carried on between that place and Poverty Bay. I have lately returned overland from Waiapu, and judging from the apparent willingness of the Natives to accept road work, I hope that before long this road may be pushed through. At present it is very bad travelling, even in summer, and in winter generally impassable. Iharaira Te Houkamau is particularly anxious that that portion between Hick's Bay and Whangaparaoa should be laid out. I may remark that as there is only one Public Works overseer and surveyor in the whole of this large district, notwithstanding that that officer (Mr. S. Crapp) is very energetic, the work of survey must necessarily proceed somewhat slowly, The Opotiki and Poverty Bay Eoad, let by contract to the Messrs. Simpson, is approaching completion. A considerable portion of the work on this has been done by Natives, the Ngaitai, Whakatohea, and other tribes having taken sub-contracts for small pieces.