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about the banks of the Waitoa. On Tuesday I proceeded to Tamahere, where I stayed the night at Te Eaihi's kainga. I visited Te Hakiriwhi and Te Ponui at their houses. These three chiefs have for some years past dwelt in weather-boarded houses. At each of their places I observed a flock of sheep. Te Eaihi and Hakiriwhi have only a small portion of their compensation awards of land left, while Ponui has nearly the whole of his, about 800 acres, nearly the whole of which is fenced and laid down in clover and grass paddocks. Te Eaihi and Hakiriwhi, as also Natives at the other settlements, when talking of your late visit to Waikato, spoke favourably of the interviews they had with you, saying that what you said on those occasions to them was "marama" (satisfactory). The Natives throughout were friendly. I have no reason to suspect from their demeanour, or from what I saw, after careful observation, that they have at present any desire for anything but the maintenance of peace. Their general talk was on agricultural subjects, principally the advisability of cultivating wheat extensively this season, as they had an idea from the prices current that better rates would be obtained next harvest. Some of the Natives had been laid up with a disease which commenced with an inflammation of the nose, which was followed by fever, during the progress of which the hair of the head came out, leaving the head perfectly bald. After recovery the hair again grows. I did not hear of any deaths from this source. Hote had been seriously ill; his relatives thought he was going to die; but he has recovered, and was one of the party who went from Wharepapa to Hikurangi. These Natives speak in anything but flattering terms of Eewi, in consequence of his action respecting Otautahanga. They also have a grievance against Te Puke for siding with Eewi, as they say he is a near relative of theirs. The meeting at Hikurangi is likely to be a large one : representatives from several districts have gone there. A few days will show whether any important decision was arrived at, or whether it was simply an excuse to consume an extra quantity of food. I have, &c, The Hon. the Native Minister, Wellington. E. S. Bush.

No. 11. Mr. J. H. Campbell, E.M., Waiapu, to the Under Secretary, Native Department. Sir,— Waiapu, 26th April, 1877. In acknowledging the receipt of your (circular) letter of March 23rd, requesting me to furnish, for the information of Parliament, the usual annual report upon the state of the Natives in this district, I have the honor to inform you that during the past year very great improvement in the general condition of the people has taken place. Since the year 1805, I have not known food so abundant and the general health so good. The money acquired by the sale to Government of certain blocks of land not required for their own purposes has enabled many of them to build substantial houses, also to add in other ways to their comfort. A great increase in the number of children is apparent. Morally, their condition is decidedly improved. With the exception of a very few cases of horse-stealing and petty thefts, committed by boys generally, there has been nothing to disturb the peace and well-being of the district. Their disposition towards the Government, a very few excepted, is good. The schools, four in number, are progressing as favourably as can be expected. Those of Akuaku and Waiomatatini show a daily average number of from forty to fifty scholars, Kawakawa about thirty, and Tokomaru {although a large settlement) not nearly so many. The children are as a rule quick to learn, but the teachers complain of the irregularity in attendance caused by the frequent inducements to absent themselves from school, offered by living among their own people, who take them away to work or send them on errands as they please. A large meeting with feasting took place here last week to celebrate the completion of the road over the East Cape hill leading to Hicks's Bay, at which it was resolved that the w-ork of road-making should be continued this year as far as Kawakawa. The portion already completed is excellent, and renders travelling towards the North from Waiapu very different from what it has been during past years. The establishment of a ferry at the crossing of the Waiapu Eiver, the want of which has always hitherto proved dangerous to travellers at certain seasons, is a great improvement. Preparations are being rapidly pushed on for boiling down all the sheep in the district infected with scab. This is certain to prove a great boon not only to this immediate district, but also to the whole country lying along the coast, particularly in the direction of Tolago Bay and Poverty Bay, to which it has always been feared that the disease might be carried. The eradication of scab will also conduce to the settlement of much valuable waste land hitherto lying useless. I have, &c, The Under Secretary, Native Department, J. H. Campbell, Wellington. Eesident Magistrate.