D.—6.

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honor to draw your attention to the sales of land in the Tauranga and adjoining counties for the past year, as published in the Government Gazette of this evening: Tauranga, £3,155 18s. 5d.; Whakatane, £704; Taupo, £18 155.; Thames, £177 17s. 6d. I have further to state that the Government land sales in Tauranga and Whakatane Counties above referred to, have been almost entirely confined to sales within the Townships of Tauranga and Opotiki, in the Tauranga and Whakatane Counties, leaving but a very small proportion of returns for the sale of rural lands, and therefore, unless extraordinary means are not adopted for the settlement of land as proposed by me, the Government need not expect any considerable addition to the land revenue of this part of the colony for many years. The capital introduced by my last body of settlers has been estimated to exceed £100,000. I have, &c., The Hon. the Minister of Lands, Wellington. Geo. Vesey Stewart.

No. 34. Mr. George Vesey Stewart to the Hon. the Minister of Lands. Sir,— Wellington, 6th August, 1879. In reference to our interview of this morning, in which you requested me to submit further proposals for the formation of the special settlement, I beg to refer you to the general terms of my last agreement with the Waste Lands Board, for Katikati No. 2 Settlement, as given in D.-3, page 5, 1878. I would, however, ask some modifications, which the experience of the last settlement suggests : — 1. As the proposed area is five times the extent of No. 2 Settlement, and taken in one continuous block or ring-fence, we may reasonably infer that in such an extended area a large quantity is not suitable for agricultural operations, therefore that the number of persons should be one to each hundred acres. I should, however, here remark that, though I was only bound to introduce 132 adults for No. 2 Settlement, I introduced in the ship " Lady Jocelyn" alone about 400 souls, and the remainder of my party reached New Zealand in five other vessels. 2. That the Agent-General's certificate be dispensed with, and that the Agent-General be instructed to afford every reasonable facility without compromising the Government in any way 3. That, in consideration of the increased area, it would not be advisable to plant a large body simultaneously, and that the time for placing them thereon be extended, say, for four years from date of signing the agreement. 4. That the terms be 10s. per acre net, payable as follows : 20 per cent, within twelve months of the agreement being signed, and the balance by annual instalments of 10 per cent, till repaid. 5. That such portion of the block shall be reserved by me for colonists or colonists' sons as may be considered expedient. There are other minor matters of detail which could probably be arranged hereafter. I would, however, draw your attention to the fact that the autumn and early winter months at Home is the only season for collecting persons of the agricultural class, when their crops are gathered and easily disposed of; and, further, would enable the first contingent to reach New Zealand at the close of our winter months, with a long spring and summer before them. It would therefore be a matter of vital importance that I should be enabled to return to Great Britain forthwith ; and, though Mr. G. M. Heed and such agents are highly respectable men, and well known in the colony, they have not the same influence as what my combined experience and position at Home have given me. The last two agreements were dated 24th June, 1874, and 31st July, 1877, and both parties arrived here on the August of the following year. I have, &c., The Hon. the Minister of Lands, Wellington. George Vesey Stewart.

No. 35. The Under-Secretary for Crown Lands to Mr. George Vesey Stewart. Sir, — General Crown Lands Office, Wellington, 19th August, 1879. I have the honor, by direction of the Hon. the Minister of Lands, to acknowledge the receipt of your three letters, dated respectively the 29th July, the sth August, and the 6th August, setting forth the terms upoii which you would be willing to undertake the formation of further special settlements on the east coast of the North Island, and requesting that certain blocks of land which are now available to be dealt with by the Government may be withheld from sale pending a settlement of your proposed scheme. In reply, I am to inform you that the Government is not at present in a position to entertain your proposals; but, in the event of the Te Puke Block being surveyed and placed in the