G.—lA.

4

that the Ngatipukeko at Te Poroporo, near Whakatane, are this year large producers of this grain. I am endeavouring to obtain through the Native Assessors a return of the quantity of grain grown by each tribe, but I regret that the season is not sufficiently far advanced to have it completed in time to accompany this report. Whaling has as usual been pursued by some of the Natives at the eastern end of the district with some success. The European settlers of Opotiki continue to employ to some extent the Natives residing near the settlement at seed and harvest times. 3. Disposition towards Government, Political Feeling, S(c. Of the Natives in the Eastern portion of the district from Cape Runaway, to Torere, there is little to report, their loyalty and good conduct being conspicuous as in past years. Some of the surrendered rebels (Aitanga-a-Mahaki) have availed themselves of your permission to return to Poverty Bay. The bulk of them however are still at Torere, and I believe are not so eager to return as they were when they were detained by Government. Of the Whakatohea, including the Ngatiira, I have little to remark except that they have been quiet and well-behaved, and I believe as industrious as any Natives iv New Zealand. The recent appointment by you of two of their chiefs to act as Native Assessors has I believe given them great satisfaction. The Ngaitama hapu are still very anxious to have the division of their land reserves carried out. Te Waru and his party of surrendered rebels have been cultivating this year near Waiotahi, and have reaped fair crops. I have lately, in accordance with your instructions, selected fresh land for cultivation by them, of the quality of which they have now no reason to complain. A small party of the Arawa still occupy Ohiwa as a garrison. The Whakatane Natives are in a more satisfactory state than they have been since the war. The division of their reserves amongst the several tribes has been a matter which has occasioned continual discontent and quarrels amongst them ever since the land was confiscated. Mr. Halse came down to divide these reserves, and his arrangements, though since slightly altered, have on the whole given satisfaction, and I think have been, accepted by all as a final settlement of the question. The Ngatipukeko, having all now moved up the river, have again commenced cultivating extensively, and will doubtless (the soil being so fertile) rapidly regain the prosperous state formerly enjoyed by them. The Ngatiawa have not cultivated so extensively this year, having been engaged throughout it in building a grand carved house, said to be one of the finest in New Zealand, and which you opened in March last. Tour having done so, and the admiration which this house (a great part of which was carved by his own hand) has excited, has caused the old chief Apanui great pleasure, and, perhaps it is not too much to say, will gladden the. few remaining years of his life. During the past month the house has also been visited by the chief Rewi Maniapoto, and a party of Waikatos (chiefly Ngatimaniapoto). These were received in a friendly manner by myself and the resident Natives, and I doubt not the impression on them made by their visit to this coast will be a favourable one. During the past year the Urewera, though still disputing amongst themselves on their land questions, &c, have uniformly preserved friendly relations with the Government and with neighbouring tribes. In fine, I can hardly speak too highly of the readiness with which all the tribes in this district submit to our laws and the wishes of the Government. 4. Public Works undertaken by Natives. These have not been so extensive as in the two previous years. This, however, has been caused to some extent by the Public Works Department not being always prepared to afford Natives the work they are desirous of obtaining. During the last year the Ngatiawa and Ngatipukeko have done some little work on the Whakatane and Te Teko Eoad. The Urewera have completed some two or three miles, and are still working on the Whakatane Valley Road. The work on the Opotiki and East Cape Road, I regret to say, has this year been confined to making a few improvements where urgently needed, and to necessary repairs of parts already made. On the Opotiki and Ormond Road, which at length approaches completion, parties of the Ngaitai and Whakatohea have been working from time to time. 5. Native Schools. One new school (at Te Kaha) has been opened during the year, and those already established have been kept up ; my report on which I shall shortly do myself the honor to lay before you. In conclusion, will you permit me to draw your attention to the fact that European settlement is now progressing satisfactorily, and that a considerable breadth of land is yearly added to that in cultivation, and from time to time houses are erected on the settlers' homesteads. I have been pleased to notice also, during the past year, a considerable accession to the European population, both of men of means and also of the labouring classes, these last chiefly immigrants lately landed in Auckland. The influx of Europeans, should it continue, which I see no reason to doubt, will be a guarantee for the continuance of that law and order which now exists in this and the surrounding Native districts. I have, &c, Heebeet W. Beabant, The Hon. the Native Minister, Wellington. Resident Magistrate.