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During the past year the Natives in this district have been most orderly, and in every way trying to follow the footsteps of their European neighbours, mixing freely with them in business transactions of all descriptions, which have always terminated satisfactorily. ' ' There has been no crime worth recording, with-the exception of three or four cases of petty larceny, and about the same number of drunkenness, there not being a single commitment to the Supreme Court. Intemperance, without doubt, is greatly on the decrease. Many of the principal chiefs formerly addicted to this vice have become Grood Templars, and by their example endeavour to induce their people to follow them. 'I believe they are about opening a temperance lodge for themselves. I regret to say that, until within the last few months, the Whareroa school was entirely deserted on account of some unpleasantness between the late master and the parents of the school children. Since the present master (Mr. La Trobe) has had charge, the school has been progressing favourably. I am sorry to add that Mr. La Trobe, within the last few days, has sent in his resignation. The crops this year have proved a great success, the average yield of wheat being about twenty bushels to the acre. The quantity grown by the Natives I estimate at the lowest to be about 15,000 bushels. Owing to the reduction in the price of wheat this year, the Natives are naturally a little disappointed, the price being 4s. 3d. per bushel. Tauranga wheat maintains the highest price in the market. The flour mill for the Natives, which has been completed, has been erected on the Wairoa Eiver, and will prove a great boon to the district. An experienced miller has been engaged, who will do his work at so much per bushel of wheat. The Natives have very much improved in their agricultural pursuits. They have in many villages erected substantial fences of the best material. The mortality among the Natives, during the past year, has been great; in one hapu alone, the Ngatihe, there have been seventeen deaths, principally children, and a few old people. Measles has been rife in the district, but, with a few exceptions, has not been fatal, every attention having been given by the medical officers of the district, who, on more than one occasion, travelled eighteen or twenty miles to render assistance. Many sick people were brought to the Native hostelry, and there received medical treatment. The only public works undertaken by the Natives as a body were on the Katikati Eoad, for which they received the sum of £130. They are very good workmen, and are often employed by contractors, for which they receive wages at the rate of from ss. to 6s. per day. It is hardly necessary to state that the Natives of this district are loyal, Hauhauism being only a name. For instance, during Eewi Ngatimaniapoto's visit, I heard only one strong Kingite speech, and that w,as made by a chief of no great influence, and was only made to court Eewi's favour, to which Eewi would not reply. lii conclusion, I beg to state that I think the Natives are most orderly and well behaved. I have, &c, The Under Secretary, Native Department, Wellington. Hopkins Claeke.

No. 3. Mr. H. W. Beaeant, E.M., Opotiki, to the Hori. the Native Mintstee. Sic, — Opotiki, Ist June, 1875. I have the honor to lay before you the following as my annual report on Native matters in the Opotiki district: — 1. Condition of Natives, Physical and Moral. The physical condition of the Natives in the district remains much as when I reported last year, food having been plentiful, and their state of health above the average. Since then, two chiefs of some note have died—Te Matenga Peia, of Te Kaha, and Kaperiere Tamaiarohi, of Whakatane, both men of influence in their tribes, and staunch supporters of the Government. The measles has been prevalent during the last few months in this district; and has gone through most of the settlements, •but has been a a very mild form of the disease, and although a few children are said to have died of it, I think in most cases they have been moribund lives. The Natives have been assisted to the fullest extent possible with medical advice and drugs. As regards the criminal statistics of the district, no Native has been convicted during the past year of any offence against the person. Seven cases of indictable offences have been charged against them at the Court (mostly larceny) : of these, two were committed for trial, two were summarily convicted and sentenced to imprisonment, while three were dismissed. Only two quasi-criminal charges were brought against Natives—one for sly grog-selling, and one for a breach of Impounding Act—in both of which convictions ensued. I believe drunkenness is not so prevalent as it was a year or two ago, although some of the Natives, especially the chiefs, are still addicted to it. Only one conviction took place during the past year at the Court. This, however, is no criterion of the extent of thfe evil, as it takes place principally at Native gatherings, remote from the European settlements and from police control. The example and influence of the chief Wepiha Apanuihas done much to check intemperance at Whakatane. 2. Crops and Native Industries. I am glad to be able to report that cereals have been more extensively grown during the past year than since I have been resident here. In the Eastern portion of the district a large breadth of wheat has been grown, the Kaukokore Natives having sold over 3,000 bushels, and those at Te Kaha nearly 4,000. The Whakatohea and Ngatiira have, as usual, grown a largo quantity of maize, and I notice