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In addition to the above lands, the Commissioners have decided to deal with the following education reserves in the manner indicated hereafter : (1.) Eun 88, Wyndham, containing about 5,606 acres, available on the Ist May next, to be surveyed into sections of from 150 to 320 acres each, according to quality and position, and offered for sale partly on deferred payment and partly for cash, with the exception of about 1,000 acres around Mount Egremont, to be offered for sale in one section as pastoral deferred-payment land. (2.) Section 243, Hokonui, 1,000 acres, available on Ist January next, to be surveyed into sections of from 150 to 320 acres, and offered for sale on deferred payment, (3.) Sections 242, 404, and 405,"Hokonui, 5,526 acres, and Sections 406, 407, and 408, Hokonui, 3,005 acres, all available in March next, with the exception of Section 404, all to be surveyed into sections of from 200 to 320 acres, and offered for sale partly for cash and partly on deferred payment. Section 404 to be offered"'for sale on pastoral deferred payment. The Commissioners will therefore be glad if you take the necessary steps to have the survey of the before-mentioned blocks proceeded" with as soon as possible, and would suggest that ij; be done by contract under the supervision of the Survey Department. In the case of Block X., Waikaia, which is now in a position to bo dealt with at once, it having been withdrawn from the run (326) by warrant under the hand of His Excellency the Governor, dated 13th May, 1879, under the provisions of " The Otago and Southland Education Eesorves Leasing Act, 1878," the Commissioners have to suggest that, if possible, steps be taken to revoke the warrant setting this land aside for leasing in terms of the Act before mentioned, in order that Sections 1, 2, 4, 5, 6, 8, 9, 10,.. 11, and 12 may be declared open for sale under section 53 of " The Land Act 1877 Amendment Act, 1882." Eeferring to the size of the sections suggested by the Commissioners for survey—viz., from 200 to 320 acres, according to quality—the Commissioners think it advisable to offer the land, in the first instance, in sections. If afterwards it is found desirable to offer for occupation in larger areas the sections can be grouped. I annex hereto a map showing the reserves comprised in the Waikaia runs. The blocks marked in dark sienna and bordered with green are those already surveyed; those in light sienna and yellow have been reserved for settlement, but are not yet surveyed. The map also shows the boundaries of Buns 326, 327, and 327 a, marked red, and Eun 193 a, marked in purple. I have, &c, J. Maitland, Chairman, School Commissioners of Otago. The Hon. the Minister of Lands, Wellington.

No. 3. The Undeb-Seceetaey for Lands to the School Commissioners, Dunedin. Sic, — General Crown Lands Office, Wellington, 13th December, 1882. I have the honour, by direction of Mr. Eolleston, to acknowledge the receipt of your letter of the 21st ultimo, with reference to the proposals for dealing with the educational reserves in the Waikaia District. In reply, I am to inform you as follows : 1. The Government concur in the recommendation of the Commissioners as to re-leasing Buns 326, 327, 327 a, and 193 a, with, however, a modification of the boundaries of Eun 327, so as to include with it the area immediately behind the 1,300 acres (Sections 1 and 3 of Block VII.), and the strip of flat land between Section 3 and Gow's Creek, fronting the main road, as shown on the plan, which I return herewith. This proposed addition to Eun 327 will give a good site for a homestead for the run. The subdivisional surveys will be at once proceeded with, in accordance with the recommendation of the Commissioners, with a view to the lands being offered for settlement at an early date. But, as the Government do not entirely concur with the proposals of the Commissioners as to the mode of dealing with the agricultural lands, Mr. Eolleston proposes to take an early opportunity of visiting the locality in which the extensive areas to be dealt with are situated before finally replying to the recommendations of the School Commissioners. I have, &c, H. J. H. Bliott, The Chairman, School Commissioners, Dunedin. Under-Secretary.

No. 4. The School Commissioners, Dunedin, to the Hon. the Minister of Lands. Sic, — Dunedin, 27th January, 1883. Referring to your conference with the School Commissioners yesterday re the education reserves in Otago, which you have lately visited, I have the honour to inform you that the Commissioners have decided to adopt your suggestions respecting village sites, forests, recreation, and cemetery reserves. With regard to the disposal of part of the reserves under the perpetual-leasing clauses of " The Land Act 1877 Amendment Act 1882," they have unanimously decided to abide by their former resolution, viz., to have the lands mentioned in my letter to you of date 21st November last ' proclaimed open for sale in terms of section 53 of the Act before-mentioned, one-half to be sold for cash and the other half to ba-sold on deferred payments. The Commissioners will be glad to avail themselves of the assistance of the Survey Department in classifying the land in question. I have, &c, J. P. Maitland, Chairman, School Commissioners of Otago. The Hon. William. Eolleston, Minister of Lands, Wellington.