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Of those portions of terrace-land where rimu is absent, or is only sparingly found, there is a. considerable quantity of brown birch (Fagus fusca). This tree is also plentiful in parts of the hill land, intermingled with red birch (Fagus menziesii). Excluding those portions which I consider have not on them sufficient timber to pay for the construction of tramways necessary for its removal, there are about 8,500 acres of the level land of the Rai which may be regarded as good timber-country. To this, again, I would add 5,000 acres of hills. Owing to the peculiar configuration of the Rai Valley and its branches, and the flooded nature of a portion of the land, there are only certain lines where tramways for the removal of timber could with safety be laid. In estimating the various areas mentioned in this report I have been guided by the traverse survey made by the late T. Pickering, Esq., shown on maps of Tennyson and Wakamarina districts. As far as I am capable of judging, the survey has been extremely exact, the bends of the river and smaller streams, and other features of the country, being all faithfully laid down. Joseph Rutland, Ranger of Crown Lands.

APPENDIX D. Sir, — In accordance with the instructions received from the Crown Lands Department, Wellington, we have the honour to submit the following report (with explanatory plan) of the Wakamarina, Tennyson, and Heringa Survey District, embodying our views as the best means to adopt for promoting healthy bond fide settlement in the Upper Pelorus, Brown, Ronga, Tuna-kino, and Rai Valleys. Land recently withdrawn from Sale. These sections comprise all the unsold surveyed land on the eastern side of the Rai River, coloured light brown. The quality of the land varies considerably, the low-lying portion of the sections being very good alluvial soil, fit for agriculture, the remainder medium quality, good pasture land, but all heavily timbered—principally rimu, white-pine, and a little totara. Sections Nos. : 63 to 72, known as Rimu Gully, contain some millions of feet of that splendid timber. Brown River. This small valley on the western side of the Rai, coloured green, contains about 500 acres of land that will eventually be fit for agriculture, and 1,000 acres not too high country for carrying artificial grasses. This block is fairly well timbered, and medium quality. The road to Nelson ascends the hill on the north-west side of this stream to the Rai Saddle. Ronga Valley. This valley runs nearly due north from the Rai, extending about seven miles before rising to the saddle, which in the lowest part, is section 750ft. higher, but a good track can be graded into the Croixelle's Harbour. The Ronga contains about 2,000 acres, coloured yellow, and of fairly level land, mostly good soil, suitable for cultivation ; and 4,000 acres of low spurs and sloping ground, the highest back-line of survey being not more than 1,500ft. above the level of the sea, and all suitable for good grazing country when the bush is removed. The centre of the valley in places has only light bush, while other portions of the valley, specially those lying to the right-hand side going up, are heavily timbered with rimu, matai, white-pine, and totara. The banks of the stream are well defined. Tuna-kino Valley. This is a tributary of the Rai proper, and contains very little level land, but has nice gradual slopes towards the hills on both sides. The soil is rather inferior in quality, showing the only auriferous signs we noticed during our journey. The upper part of the valley is all birch country, and the lower portion of the survey block, containing 5,500 acres, as you will see on reference to the plan, coloured drab, includes a part of the Upper Rai Valley, which is first-class land, all heavily timbered with rimu, pine, and matai. Upper Rai Valley. This portion of the district shown on the plan, coloured pink, is twelve miles long, estimated to contain 3,600 acres of level land, the greater portion being good alluvial soil that will eventually be suitable for agriculture, and 3,400 acres of slopes and hill-sides, capable of carrying artificial grasses and becoming good pasture when the timber is removed. Parts of the low lands are flooded at times, but a small embankment here and there along the river-bank would prevent a good deal of this. The valley contains the most magnificent timber we have ever seen, especially towards the head of the trees, being from 70ft, to 100ft. high without a branch, and would yield from I,oooft. to 3,000ft. of timber each. We counted the trees in different places, and found from ten to forty good milling trees within a radius of three chains. Tracks. The track leading from Mr. C. Turner's through the Upper Rai Valley over to Harvey's, being in the Pelorus Sound, has just been completed, under the superintendence of Mr. Huddleston, and has been practically recognised as a great boon to the settlers, as shown by Mr. Archer providing two men during the whole work at his own expense, and we recommend Mr. Robertson, the surveyor, be instructed to lay off a road up the Ronga and over the saddle to the Croixelles before the money voted by Parliament is expended.

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