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Cabinet, and when the refusal of the Government to accede to their desire was intimated to the Commissioners it was too late in the session for a private member to bring in such a Bill with any prospect of success. In 1881 the Commissioners prepared a Bill to effect the purpose, it passed through several stages, but was finally lost in Committee. In 1882 amendments to the Education Eeserves Bill were proposed by the Commissioners, which would have been most suitable, but were not accepted, as the Minister of Lands considered his amending Land Bill answered the purpose more satisfactorily. Again, when the first printed copies of " The Land Act Amendment Act, 1882," were circulated, the proposals of the Commissioners were*'forwarded to the Government —about the 20th November, 1882. No conclusive reply was received until receipt of your letter of the 19th instant. All this shows that the delay in opening thesQ,reserves for settlement is in no way attributable either to the disinclination or to the inaction of the School Commissioners. But, while endeavouring to show that the School Commissioners have no substantial ground for regarding their failure to lease reserves for twenty-one years as a sufficient reason for discontinuing the system for the present, the Minister does not indicate any greater confidence in that system, for, when now urging the trial of leasing, it is of a system radically different, namely, perpetual leasing. The Commissioners have carefully considered this question, and they are unable to concur in the views of the Minister of Lands. They see no reason to alter their decision already communicated upon two separate occasions, and they are convinced, from the terms of memorials sent them, and from personal communications with residents in various parts of the district, that their proposals will, if carried out, best meet the wishes of the settlers. The School Commissioners have been under the impression that, subject to the approval of the Governor in certain cases only, they were free agents, administering these reserves to the best of their ability; not subject to have their decisions repeatedly carped at and overruled by the Minister of Lands. If they were subject to receive directions from the Minister, a great step would be taken towards centralizing the administration of these reserves, a result of which the community would not be likely to approve. A time might come when the Minister of the day might be a headstrong individual, unwilling to surrender his own procrustean views, although it could be shown that they were not in harmony with those of the community ; possibly unable to look at a question of this kind otherwise than from his own point of view, trained, perhaps, to consider that the administration of these reserves should be conducted on considerations of political expediency, and in whose regard the beneficial occupation of the land might hold a subordinate place. An official of such character would be not unlikely to search for precedents, if he happened to have some little difference of opinion with any of the minor public bodies; and in this view the Commissioners would deprecate any controversy with the Minister of Lands in the course of which it might be so far misconstrued as to seem to the public as if the Minister desired to bring pressure to bear on the Commissioners in order that their opinions and actions might be brought into conformity with his own. I have, &c, C. Macandbew, The Under-Secretary, Crown Lands, Wellington. Secretary.

No. 13. The Undek-Seceetaby for Lands to the School Commissionebs, Dunedin. Sib, — General Crown Lands Office, 6th April, 1883. I have the honour, by direction of Mr. Eolleston, to acknowledge the receipt of the letter from the Secretary of the School Commissioners, dated the 30th ultimo, in further reference to the question of dealing with the edmation reserves in the Waikaia, Mataura, and Wyndham Valleys. My telegrams of the 3rd instant and this day's date, copies of which I forward herewith, will have informed you of tlie decision of the Government to deal with the balance of the twenty thousand acres which was set apart on the 9th May, 1879, for leasing, in terms of " The Otago and Southland Education Eeserves Leasing Act, 1878 " ; and, as Mr. Eolleston is equally desirous with the School Commissioners of avoiding any controversy, he hopes that effect will at once be given to the terms of the Proclamation of the 2nd instant and the land advertised for leasing to the public, unless, as he still hopes may be the case, the Commissioners see their way to taking action under section 50 of the Land Act of last session. My telegram.of this morning will have informed you that an Order in Council (copy enclosed), making terms and conditions for the leasing of the land as required by the 4th section of the Act of 1878, has been transmitted to Auckland for the signature of His Excellency the Governor. These terms and conditions have been framed on the basis of those which were issued with the approval of the School Commissioners for the leasing of the four thousand acres in June, 1880, the onlymaterial alterations being in the clauses-relating to compensation for value of improvements. These clauses have, you will observe, been altered so as to embrace the more extended provisions of the 33rd section of the Land Act of last session, and the limit of valuation for improvements at the end of the term of lease has been extended from £3 to £5 per acre. I have, &c, H. J. H. Eliott, The Chairman, School Commissioners, Dunedin. TJnder-Secretary.

Enclosure 1 in No. 13. The Undeb-Secbetaey for Lands to the School Commissioners, Dunedin (Telegram.) Government Buildings, 3rd April, 1883. Mr. Bolleston received yesterday the Commissioner's letter of Friday last. He desires me to ask whether he is to understand from it that the Commissioners decline to take any action under section