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Akaroa. —As previously arranged, an overseer and working party were despatched to this place in April last, since which they have been engaged in preparing a landing-place and cutting a roadway, mostly in rock, from it to the site of the lighthouse. Plans have been prepared for the tower and dwellings, and the material for their erection will be despatched as soon as the roads and other works of excavation arc complete. Cape Saunders. —Surveys have been made of the new site, with a view of acquiring the land, but the question of determining the best landing-place has delayed the completion of the plans. This, however, will be decided on on the next southern trip of the " Stella," about the middle of July, and the plans will then be completed as speedily as possible. Mokohinau, Hauraki Gulf. —It was hoped that the land required for a site for this lighthouse would have been acquired before this; but, as no reasonable terms can be arranged with the owner, it will be necessary to take it under " The Public Works Act, 1870," arrangements for doing which are now in hand. During the year I have visited the following lighthouses, where works were in progress or contemplated:— 1877. 13th September, Portland Island, to inspect progress of works; 15th December, the same; 25th December, Cape Maria, to inspect progress of works, and to arrange for erection of permanent tramway, and preparation of landing-place, fixing of crane, &c. 1878. sth February, Cape Farewell, to inspect generally, but more particularly state of wood framing of the tower, which I found to be satisfactory ; 14th March, Moeraki, to inspect progress of works; 18th April, Hokitika, inspected site, and obtained general information. I have, &c., John Blackett, The Officer in Charge, Marine Department. Marine Engineer.

Enclosure 2. REPORT ON NAVAL TRAINING SCHOOL, KOHIMARAMA. The Manager, Naval Training School, Kohimarama, to the Officer in Charge, Marine Department. Sir, — Naval Training School, Kohimarama, 30th June, 1878. I have the honor to transmit, for the information of the Hon. the Commissioner of Customs, the following report on the aboveuamed institution for the past twelve months. The health of the boys generally has been very good; there have been but few serious cases, and those mostly resulting from accidents. Full information on these subjects will be found in the report of the Medical Officer, which is attached hereto. Table A gives the educational progress of the boys, which is, on the whole, I think, satisfactory; the frequent change of schoolmaster has been a considerable drawback, but I trust that the person at present holding the position will be willing to retain it. In seamanship the progress has not been what I could desire. This I attribute to the want of a suitable vessel for training the boys; but, despite this drawback, some of them have made considerable progress. Table C gives the list of clothing made and other work done in the school, under the efficient instruction given by Mrs. Speight; the boys generally continue to improve in sewing. During the last six months cap-making has been undertaken; so that, with the exception of boots and socks, every article of clothing is now manufactured in the school. Twenty-nine boys have been admitted and thirty-seven discharged, leaving seventy-one now on the register, of which number two are out on license (see table D). Table B contains the record of visits paid by clergymen for holding Divine service and imparting religious instruction. The conduct of the boys has not been so satisfactory as I could wish. This is, in my opinion, mainly attributable to the presence of a few very bad characters, who, to a great extent, give the tone to the others. Both sections 9 and 10 of the Act have contributed their quota of these : the former of these sections is in many instances too liberally interpreted (see table E), but it is also a fact that some of the worst-behaved and most irreclaimable boys have been sent here under the provisions of section 10, whilst it is particularly noticeable that section 8, under which eleven twenty-fifths of the boys have been sent here, has contributed only a couple of really bad characters. Cases of absconding have been numerous : particulars of these are given in table L. In most cases, I believe, the boys go simply for the sake of a little change; a vessel for cruising would, I think, afford this. It is worthy of remark that since apprenticing to shore trades has ceased, a little over four months, there have been thirty-five cases of absconding, and only six during the previous eight months, when the boys were being rapidly discharged to service. The garden and farm work connected with the school has been carried on with good results and is a source of considerable profit. Table I. gives the number of boys who have been apprenticed during the twelve months and the trades to which they have been indentured. A considerable demand continues to exist for boys from this institution for farm-work, particularly in those districts to which boys have already been sent from the school,