G.—l.

the Court. In the meanwhile, through the exertions of Major Eopata, Hotene Porourangi, and Mokena Kohere, the defendants expressed their intention to attend the Court. They did so, and two of them were bound over to keep the peace for twelve months, and had considerable difficulty in finding sureties. The other case was dismissed. The two tribes then returned to their respective settlements, and have since been living peaceably together. This quarrel has been in existence for the last nine years, when a man belonging to Hirini's tribe was shot, the fact of the culprit being allowed to escape trial has been the means of the two tribes living in a lawless state ever since. Public Works. —The Survey Department have lately been laying off the inland road from Gisborne to Waiapu. A section of the Aowera tribe opposed the survey at Makarika. On the matter being reported to me I held a meeting of the natives at Taumata-o-Mihi, and explained to them that the road was necessary, and must be taken through. The survey is now nearly completed. At Kawakawa and Hick's Bay the natives are very anxious to have the country opened up by roads connecting the settlements with Gisborne and the Bay of Plenty. Industrial Pursuits. —Since the large expenditure of public money on land purchases has almost ceased, the natives have turned their attention to cultivation. About 13,600 bushels of maize, 4,000 bushels of wheat, and 2,500 bushels of grass seed, have been grown in the districts during the past year. The number of cases in which Maoris were concerned and heard in the two Courts under my charge, viz., Waiapu and Tologa Bay, were as follows :—Committed for trial, 2; summary convictions, 40; cases dismissed, 24; civil cases, in which Maoris were defendants, 102; in which Europeans were defendants, 8 ; between Maoris only, 19. There was one serious quarrel which resulted in a case of manslaughter. The culprit was at once arrested by Sergeant McGuire, and on my arrival a few days after, an inquest was held, and the accused committed for trial. He has since been sentenced to seven years' penal servitude. Sergeant McGuire deserves credit for his tact in this case for the manner in which he persuaded the natives to keep the body of the deceased until an inquest was held, Maoris being, as a rule, adverse to giving up their dead for the purposes of post mortem examinations. The above named cases do not include the Gisborne Court, of which I have no record. Native Schools. —There is one school in the Poverty Bay District at Tologa Bay. It is not well attended, owing to jealousy among the natives. In the Waiapu District there are three, viz., Tokomaru, Akuaku, and Waiomatatini. These are well attended, and great interest taken in them by the natives. Three applications for new schools in the vicinity of Waiapu are now under consideration of the Education Department. Vaccination. —A great number of natives have been vaccinated by Mr. Scott in the northern portion of the Poverty Bay and Waiapu Districts. In the Napier District Dr. Caro has successfully vaccinated a number, but he has experienced difficulty in getting the natives to assemble for the purpose. General Remarks. I would again urge the necessity that exists for legislation in respect to the subdivision of native lands. The Native Land Court should have full power to subdivide native lands, whether under lease or in the hands of the natives, and authority should be given to surveyors to enter upon such lands for the purpose of carrying out the subdivisions ordered by the Court. I am of opinion that a new system should be inaugurated in respect to the alienation of native lands. Under the present mode of direct purchase the natives nominally get more for their land than they would if the Government had the absolute pre-emptive right; but on the other hand they have indirectly to pay high fees to surveyors, solicitors, and interpreters, so that by the time the land has passed the Court the expenses in many cases amount to the value of the lands. I would suggest that the Government alone should undertake the survey and sale of nativelands, acting as agents for the natives, and that the land should be sold or leased in the same manner as Crown lands. But in order that this plan should succeed, and that settlement be promoted, the lowest possible commission should be charged by the Government to the natives, say 5 per cent, on the price realized by the land to cover survey, commission, and all charges. Even if the Government lost by the transaction, the country would gain by the speedy settlement of lands now unoccupied by natives. The natives would also know that they were getting the highest marketable value of their lands, and that the proceeds were not being swallowed up by expenses. I think this system would be better for both Europeans and natives, as the former would be certain of obtaining valid titles, and would not be put to the trouble and expense of negotiating with natives and obtaining doubtful titles. The Europeans who purchase land held under " memorial of ownership" direct from the natives, have innumerable difficulties to surmount, and cannot obtain a good title in one case out of fifty. If some mode of alienation as suggested were adopted, I feel sure the natives would part with their lands more readily than they do at present, although they would at first hold back owing to their suspicious. nature. I have, &c, The Under-Secretary, Native Department, George A. Pbeece, K.M. Wellington. No. 9. Major Scannell, R.M., to the Undbr-Seoretary, Native Department. Sir, — Eesident Magistrate's Office, Taupo, 28th April, 1882. In compliance with instructions contained in your circular, No. 4, of the 12th instant, I have the honor to make the following report on the state of the natives in the Taupo District: — During the months of April, May, and June of last year, a Native Land Court was held at Tapuaeharuru, which was largly attended by the natives of the district, and by many from outside

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