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No. 5. Mr. G. T. Wilkinson, Native Agent, Alexandra, to the Under-Secretary, Native Department. Sir,— Native Office, Alexandra, 19th May, 1887. In accordance with request contained in your Circular No. 1, of 20th ultimo, I have the honour to forward herewith my annual report upon the state of the Natives in my districts. Waikato (including Waipa, Kawhia, and Upper Mokau). There is very little of a sensational nature to report in connection with this district during the past year. The breaking up or disintegration of the King party that has been going on during the last four years, increasing as it goes on, has entirely changed the aspect of affairs from what it used to be during the years when Tawhiao, with a large following of Natives, lived in sullen isolation at To Kuiti, at Hikurangi, and, later on, at Whatiwhatihoo. A great change has come over both the people and their country since then. At that time they were a sullen, dissatisfied, independent body of Natives, who, smarting from the effects of defeat at our hands in warfare, had betaken themselves to their mountain fastnesses, partly for safety, but principally for the purpose of removing themselves as far as possible from us, in whom they saw, or thought they saw, the destruction of their race. Now we find their sullenness broken down, and they, with few exceptions, are mixing as much and as fraternally with Europeans as ever they did in the days of the early missionaries and settlers. Their country —which until lately had been entirely closed as against Europeans —is now as open and as free and, I may add, as safe to travellers as is any part of New Zealand. Trigonometrical surveys have been made all over it; roads have, in places, been run through it; the North Island Main Trunk Eailway has advanced thirty miles into the heart of it; the telegraph now runs from Baglan across the Aotea Harbour to Kawhia—once the hotbed of Kingism ; the country has been systematically prospected for gold and other minerals by competent men (unfortunately 7 , without success, except as regards coal); and there are three Native schools within its boundaries, all of which are well attended. And, in addition, the whole of the country has already passed through the first stage of a Native Land Court investigation of title. A greater change or reformation than this could hardly be expected within so short a time even by Jhe most sanguine reformer, and it speaks highly, I think, for the leading chiefs and other Natives and half-castes, who, by their friendly attitude towards Europeans, their influence over their people, and their personal desire to bring about a change, have mainly assisted to produce the above-mentioned result. It is sincerely to be hoped that this great change which has been brought about—partly by their own wishes, but principally at our instigation—may not result in disastrous consequences to them as a race, or to their land, which is their inheritance. Now, if ever, is surely the time when they are entitled to our best endeavours to see that, whilst we as a civilized people reap benefits from their action, they shall not be allowed, if we can help it, to suffer either physically, socially, or financially. It is also to be hoped that they will soon learn to appreciate the efforts to bring about their well-being that are shown by the legislation of last year regarding the disposal of their lands and the money accruing therefrom. Health of the Natives. —The health of the Natives in this district has not been by any means good during the past year. Numbers of cases of sickness have had to be dealt with by Mr. Aubin, the local doctor, though, fortunately, with the exception of Tu-Tawhiao, son of Tawhiao, no deaths of chiefs or people of importance have taken place. The cases of sickness are mostly confined to the very young, or those past middle age —the former show a large percentage of cures. In the latter, however, the ailments are mostly of a chronic nature—such as asthma, rheumatism, lumbago, consumption, &c.; so that the giving of relief, and not perfect cures, is all that can be relied upon or expected. Social Condition. —It can hardly be expected that any very marked change should be discernible in the social condition of the Natives as a race during the short space of one year. A change that is marked and permanent is only to be seen by comparing them now with what they were some years ago. And though it may be difficult to show that there is any difference in their social condition now to what it was last year, if we compare them now with what they were, say, five years ago, a change for the better is plainly visible. In a great many cases now they are cleaner, better fed, and better dressed than they were then. Their health, if not better, is not, I think, any worse. The death-rate is not higher than it was then, and they are certainly much more temperate with regard to intoxicating drinks than they used to be. The question of their past and present industry'is one about which their are differences of opinion. So far as growing food is concerned, I think they were much more industrious from ten to fifteen years ago than they are now. Then, I believe, there were ten acres of food cultivated to one acre cultivated now. But, although that showed a large amount of industry, it does not by any means follow that the food planted in those days was for the benefit and sustenance of those who planted it. It was mostly grown for the purpose of feeding large numbers of Natives who came from other districts several times during each year to attend the periodical political meetings that were held at Te Kuiti, Hikurangi, and elsewhere, so that the food grown at the cost of so much labour was in one sense wasted—that is, those who grew it and who, with their wives and families, should have benefited by it hardly ever did so, or if they did, it was only in a very small degree. The industry of the Natives of this district at the present time is of a different kind, and is confined almost exclusively to earning money on public works. They have proved themselves to be excellent navvies, all work with which they have been intrusted on road and railway works here having been completed in a first-class manner, though, unfortunately, their labour has not always proved remunerative to them, but that is mainly accounted for by their bad system of management, such as putting on six men at a contract where three only are required, and such-like mistakes ; but they have profited by experience and are learning now to manage better. Some of the Natives and half-castes, in some instances, take sub-contracts from the European contractors, and the work that