8.—6.

Surgeons, and Dairy Instructor have been issued. A very large number of specimens of plants, insects, &c, have been sent for investigation and report. A shipment of the Hessian-fly parasite was received from Home, successfully hatched, and liberated. Another consignment is expected. Dairying has continued to develop, and there were 178 factories and creameries at work last season, being an increase of 74. The increase in the output of butter was 10,838cwt., valued at £31,943 ; but, on the other hand, there was a decrease in cheese of 8,949cwt., valued at £14,922; the total output being: Butter, 62,500cwt., valued at £265,959; cheese, 37,363cwt., valued at £83,017. Although these returns show a decrease in cheese, it is believed there was really no actual decrease in the quantity manufactured, but through some cause it was not exported till after the end of the financial year, as the quantity shipped in April shows. During the year Mr. Valentine, the Dairy Expert engaged by the AgentGeneral, arrived, and was at once fully employed in advising the department on the best means to assist the industry. The Government, believing that better organisation in London was necessary, decided to despatch Mr. Valentine there for this purpose, and it is hoped that practical good will result from this appointment. The other two Instructors have been employed giving practical instruction, and it is proposed to increase the staff in this direction. Two practical Fruit Experts were engaged last November, and have since been occupied in visiting fruitgrowers. A very large quantity of fruit is annually imported into the colony, and an effort is being made to supply local markets by improving our own fruits. POSTAL AND TELEGRAPH CONFERENCE. The first Australasian Postal and Telegraph Conference held in New Zealand met at Wellington in March last. All the colonies with the exception ] of Tasmania sent delegates. The printed report of the proceedings has been laid before Parliament, from which honourable members will learn the nature of the business transacted. In addition to the adoption by the Conference of a resolution favouring the laying of a Pacific cable, which I refer to elsewhere, and the transaction of a large amount of other business of an important departmental nature, a resolution favouring the continuance of the San Francisco service was also carried. At a later period of the session the House will be asked to renew the service for another term of three years. Now that wool is to be admitted free into the United States —a great advantage to this colony— the maintenance of direct steam communication between New Zealand and San Francisco becomes the more desirable. The question of establishing a Canadian-Pacific steam-service connecting: Australia, New Zealand (the steamers calling at one main port in the colony), and Vancouver, to alternate with the service via San Francisco, so as to secure s to the colonies a fortnightly Pacific mail-service, was also affirmed. Should it be practicable to secure such a service, Government proposes to recommend the payment of an annual subsidy of £10,000 for a reasonable term of years. This Conference was the first truly representative gathering of the kind: ever held here. Including as it did representatives from all parts of Australia, \ the Government decided to offer these gentlemen every possible facility for' seeing the colony and learning as much as they could about its resources and" institutions. Of this they fully availed themselves. I have always held the opinion that much benefit of a mutual character is : to be derived from the holding of Conferences such as this. That Ido not stand \ alone in this opinion is shown by the fact that the delegates were so impressed with the many advantages which have resulted to the Post and Telegraph administrations through the open discussion of general as well as of more important matters at annual Conferences that they gave expression to a resolution suggesting to their respective Governments that, were the question of intercolonial reciprocity similarly discussed, much practical good might be expected to be gained by the colonies. As representing New Zealand at the Conference, I thoroughly concurred in this resolution. THE CANADIAN CONFERENCE. The Government were advised that it was intended by the Canadian: Parliament to hold a Conference at Ottawa, and were invited to send a repre-; ii—B. 6.

Business transacted by Conference.

Establishment of a CanadianPacific steamservice.

Facility for seeing the colony offered to members of Conference.

Benefit derived from tho holding of Conferences.

Eepresentative sent to Canadian Conference.

IX