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to reduce beyond the amount I have indicated; and, as regards the Scotch Commissioner, I should like your express instructions. I hope I may be allowed to point out, in respect to the excess over £4,000, that, besides the recouped postages and the room provided to the Audit officer, which together we may put down at at least £100, this department now renders services to many departments to an extent that may possibly have escaped your notice. It does a great deal of work for the Colonial Secretary's Department, exclusive of the Public Works Branch, the orders for which come through the Colonial Secretary. It buys stores of all kinds for the Printing Department, the hospitals, the Education Department, the SurveyorGeneral's Department, and the Geological Department, all of which are branches of the Colonial Secretary's Office. It does a little for the Annuities and Life Insurance Department, and may do a great deal if my suggestion of extending the annuities business here be carried out. It does also a little for the Public Trustee. It does a great deal for the Treasury, and a considerable amount of business for the Post Office. It does a little for the Marine Branch of the Customs, and something, not much, for the Houses of Assembly. One thousand pounds annually might reasonably be apportioned amongst these departments, and the balance (divided between the Public Works and Immigration Departments) would not bo very much. The departments would really gain by this proposal, for lam persuaded that in the old days, before the Agent-General's Department was established, the commissions on purchases cost them more, whilst the duties were very much less. I have, Sec, The Hon. the Minister for Immigration, Julius Vogel, Wellington. Agent-General.

Enclosure 1 in No. 7. Mr. Kennaway to Mr. Ottywell. 31st July, 1877. Heeewith I transmit copy of correspondence relating to the Belfast Agency, and in reference thereto have to request that you will report to me as to the best mode of carrying the directions of the Government into effect. For the Agent-General, Mr. Ottywell. W. Kennaway. Sub-Enclosures to Enclosure 1 in No. 7. Letter from the Hon. the Minister for Immigration to the Agent-General, No. 97, 21st May, 1877. Letter from the Agent-General to the Hon. the Minister for Immigration, sth February, 1877.

Enclosure 2 in No. 7. Mr. A. O. Ottywell to Mr. Kennaway. Sic, — 3, Hope Street, Edinburgh, 7th August, 1877. I have the honor to acknowledge the receipt of your memorandum of 31st July, also copy of correspondence relating to the Belfast Agency; and I observe that you desire me to report to you as to the best mode of carrying the directions of the Government into effect. I have carefully perused the correspondence referred to. I gather therefrom that the Agency at present existing at Belfast is to be discontinued, although this is not specifically stated either in the letter from the Government or in your memorandum. I assume, also, that it is not your wish or intention to establish a branch office at Belfast in connection with the department; but that you desire that, while the district of which that town may be regarded as the centre and outlet should be more thoroughly worked than it is under the present arrangement, there should be an actual saving of expense to the Government in reorganizing the Agency. lam of opinion that there will be little difficulty in accomplishing both these objects. If the emigration to be carried on were on a scale similar to that conducted in 1873-75, I should be disposed to recommend that an active officer should be appointed, who could report to this office and work generally in conjunction with this Agency ; but, having regard to the comparatively moderate emigration now proceeding, I am strongly of opinion that it is unnecessary to incur the expense which such a course would entail. I recommend that a trustworthy Local Agent be appointed at Belfast, whose remuneration should be the ordinary commission, with bonus. He should send all letters and applications to this Agency, and receive his instructions therefrom. Ido not advise that he should be required to work for New Zealand only : a good and active Agent would not be likely to agree to such a condition. But in order (1) to give the New Zealand Government a positive advantage, as compared with other offices for which the Agent might work, and (2) to insure promptitude in the conduct of the correspondence with this office, I recommend, further, that a clerk be appointed to assist the Agent in his New Zealand business, to write letters, make out returns, and do other clerical work required in connection therewith, and, if necessary, to superintend the embarkation of the emigrants on board the Plymouth and Glasgow steamers : the salary of the clerk to be paid by the department. The Agent would pay office rent, postages, and all other expenses. The general arrangement could be made terminable by three months' notice on either side, and the engagement of the clerk could be monthly according to the usual practice of the department.