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Auckland Contract (9 miles 61 chains). —This work, after long delay, has at last been completed. The works are in good order, and trains are now running between Newmarket Junction Station and Waikomiti Station. Waitakerei Contract (12 miles 64 chains). —With the exception of the work connected with the summit tunnel, this contract has been pushed on vigorously, but cannot now be completed within contract time—llth September, 1880. The grading is about half finished; bridges and culverts about seven-eighths. Station-buildings at Kumeu are finished. Newmarket Junction Station Contract. —This work has been carried on satisfactorily, and is well advanced. It involves a diversion of the main line, which it is expected will be made about the middle of April; after which the erection of the Eemuera Eoad over-bridge will bo begun. Newmarket Workshops Site. —This includes the formation and drainage of a piece of ground on which it is intended to build workshops. The work has been carried on with energy, and it is expected will be finished within contract time. Beclamation Contract, Auckland Harbour. —The contractor for this failed to carry out the work properly, and it was found necessary, under the powers given by the General Conditions, to serve the usual notices, and to absolutely determine the contract. The work will be re-advertised for tender. Ohaupo Contract (6 miles 20 chains). —The contractor for this work has prosecuted it with energy, and in a satisfactory manner ; it is, however, behind time, due, in some measure, to extra works ordered. It is expected that the ballasting will be complete about the end of April, shortly after which it may be opened for traffic. Newcastle Bailway Wharf Contract. —This work has been finished, and handed over to Working Eailways Department. WAIKATO-TnAMES EAILWAY. Waikato Contract (12-f miles), being part of the Waikato-Thames Eailway, commencing at Hamilton East and extending eastward. It includes station-formation and buildings at Hamilton East; the remainder of the work being swamp-drains and formation. The work is progressing well, and it is expected wall be finished in contract time. Grahamstown Contract. —Eeclamations for railway purposes. This has been satisfactorily completed. Shortland Contract. —This work, although much behind time, is now nearly completed, and is a good piece of work. Kauaeranga Contract. —This consists of a railway bridge over the Kauaeranga Eiver. The work is now complete, and has been finished in a satisfactory manner. Native Labour. —The formation of about 2 miles of railway was set aside for the employment of resident Natives. They worked at piecework for some time, but afterwards left for the kauri-gum fields, and decline to return unless at increased rates or at day-work wages. The latter, however, will not be allowed. Miscellaneous Works. Manqere Bridge Bepairs. —Tho work on this contract was delayed for some time for the want of proper piles, and it was feared that the contractor would fail to carry out the work ; on being served with a proper notice, however, more satisfactory arrangements were made, and the work progressed better. About three-fourths of the piles are now driven. The work consists of the restoration of the piers of the bridge, the jarrah piles, &c, of which had become, in many cases, entirely eaten through by the teredo, and the rest were being rapidly destroyed. The new piles are of heart of totara, which is found to resist the attacks of the teredo. Bridge-painting Contract. —This is for painting the bridges on the Auckland Contract, and is now being carried out. Surveys. Waikato-Thames. —In Waikato a preliminary survey from 14 miles to 30 miles at Te Aroha has been made, and in the Thames Valley contract survey has been made up to 13 miles 63 chains, leaving about 19 miles unexplored in the Thames Valley. Kawakawa. —Eemainder of contract surveys have been made. Whangarei-Kamo. —Eemainder of line surveyed to deep water. From Auckland Northwards. —-An exploratory survey is now in progress for the purpose of ascertaining the practicability of making a railway between Helensville and Whangarei, and of ascertaining the character of the country through which it would pass. About 59 miles of this survey have been accomplished, but the progress has necessarily been slow, as the country is very rough, mostly covered with dense forest, and intersected by numerous streams, with ranges of varying heights; the main (north and south) range varies from 300 to 800 feet high, throwing off lateral spurs to the east and west coasts, some of them very difficult to cross or grade a line over in any way. Attached to this is a brief report on the progress already made, by Mr. C. B. Knorpp, with explanatory map. Another survey of similar character has been made between Whangarei and Kawakawa. The distance is about 28f miles as surveyed; the country would appear to be not unfavourable for a line of railway, and none of the grades would exceed 1 in 50. Attached is a brief report on this from the District Engineer, with explanatory map. HAWKE'S BAY DISTBICT. Napier-Woodville Eailway. Papatu Section (64 miles 48 chains to 69 miles 70 chains). —As described in last year's report, the formation over this length was let out in small contracts, and the lighter portions were finished. The heavier cuttings and banks have since been completed, but owing to the very wet weather experienced they have given much trouble. The slips have been very heavy and continuous, necessitating much