G.—s

4

Tikitapu, Eotokakahi, Okareka, Okataina, Tarawera, Berewhakaitu, Eotomahana, Eotoma, Eotoehu Eotoiti, and others. The acquisition of these lands by lease, politically considered, is, without doubt, of paramount consequence, the country being intersected by roads and telegraph lines, accessible by coach and horse, and forming the area between the great centres of population in the North Island—namely, Wellington, Auckland, and Napier. Nor should the great importance of establishing permanent peaceful relations with the large Maori population of this district be overlooked, as it will tend materially to intimidate the action of less friendly Maori communities, and raise the confidence of New Zealand colonists. Viewing the leasing of these lands by the Government from a commercial standpoint, the rentals being extremely low, there are good grounds for believing that the Government will be gainers; nor should it be imagined that these lands will be untenanted for any time after they are thrown open by Government for selection: as, for instance, Eunanga No. 1 and No. 2, well wooded and watered, having areas of respectively of 45,000 and 42,000 acres, are applied for by runholders; also Tatua East and West, containing 30,000 or 40,000 acres ; Parekarangi, of 80,000; and a firm from Auckland desires a long lease of Tawhatirahi or Otuhounga, of 19,000 acres, for the purpose of procuring sulphur. Paeroa, of 100,000 acres, and other blocks, might be enumerated ; but the above will suffice to show the eagerness of the public to secure the runs in the Arawa country, which have been so often proclaimed by newspaper writers and political partizans as " silent barren deserts." While writing on this subject, it should be stated that all the Native owners interested in runs generally are exceedingly desirous to see them in the occupation of settlers placed thereon by Government ; and we may add that, tho titles being clear, immediate possession can be given. In reference to this point, many leading chiefs from time to time have made requests to us by letter and otherwise that the various runs in these localities, on which they have received public money, should be as speedily as possible covered with stock; and some of the tribes interested are petitioning the General Assembly to expedite their earnest wishes in this respect, a course that will tend to the advancement of the country, the union of rival chieftains, and the unanimous confidence of the Arawa people in the land scheme of the present Government, in the Bay of Plenty and its inland districts. We have, &c, C. O. Dayis. The Under Secretary, Native Department, Wellington. Heney Mitchell.

Enclosure in No. 2. Summaey of Tea-Factions in Aeawa Disteicts, Laud Ptjeciiase Depaetmext Pttechases. Mohaka.-Two blocks, 47,000 acres. ] ™™lf and title comPleted' one ™"uireyed and Taupo. -Four blocks, 40,000 acres, j M£%j*£ and titl<3S comPleted; Native reserve not J et Rotorua. —One block, 20,000 acres. Unsurveyed, and balance in hand. Maketu.-Youv block, 90,000 acres. ] Two bl°*B B.™™yod and two partially; balance in hand upon ) each block. Matata. —Eleven blocks, 20,000 acres. Surveyed and titles completed. Total 217,000 acres. Note. —The foregoing twenty-two blocks contain 217,000 acres, of which sixteen blocks are completed ; area, 70,000 acres j average price, Is. 10_d. per acre. The remaining six blocks are undergoing adjustment of Native claims in order that satisfactory and final payments of the balances of the consideration moneys be made, and the area of these six is about 147,000 acres; average price, 2s. per acre, ranging from lOd. to 4s. per acre. Leases. The leases comprise sixteen blocks, containing 980,000 acres, six blocks of which, containing 235,000 acres are completed, at an average annual rental for the first seven years of |d. per acre in Taupo, and Id. per acre in tho Bay of Plenty. In Eotorua District chiefly, ten blocks remain to be completed, containing 750,000 acres, at an annual rental of Jd. per acre.

No. 3. Mr. C. 0. Davis, to the Undee Seceetaey, Native Department, Wellington. Sic, — Ohinemutu, 16th June, 1876. I have the honor to transmit, for your information, the accompanying report relative to our operations in these districts, from the Ist July, 1875, to 31st May, 1876. The monetary department of our business having, at the commencement of our work, at my request, solely devolved on Mr. Mitchell, he is forwarding to you the necessary report on that subject. As the report forwarded to you in April last bears on many points omitted in the enclosed paper, and in order that a continuous narrative of our operations be as palpable as possible, may I ask the favour of your attaching the April report to the one now forwarded, which will enable you to comprehend the various phases of our somewhat lengthened land negotiations in the Bay of Plenty and Lake Districts. I have, &c, H. T. Clarke, Esq., Under Secretary, Wellington. C, 0. Dayis.