G.—lc.

the proper course for us to adopt is not to deal with each individual case, but, on the contrary, to leave the applications to the Board, only expressing an opinion as to some exceptions that might be made in the wise general rule, of which, as we have said, we cordially approve. We would recommend for consideration the following cases in which an exception might be made : — (1.) If it should be proved that the tenant had made a permanent house on the land leased, and valued it as a residence for its associations, and the area required was not large, and did not interfere with settlement and did not create an improper monopoly, the Board ought, at a rack-rent, and considering the probable rise in the value of the land, and not present valuation, allow a surrender and a new lease for a moderate term. (2.) In a case where the land was poor and far away from settlement, and the land could not be used for closer settlement, and the ground-rent was inadequate, and the proposed rent was a great increase on the existing rent, the arrangement for a new lease for a moderate term might be sanctioned. In one case before us the increased rental offered is equivalent to a sum of £3,819, and it is said by the Government Valuer that the land is unsuitable for closer settlement. We refer to the offer of Sir Francis Price. (3.) In a case also where the rent is entirely out of proportion to the value of the land, and the land is not suitable for closer settlement, and the main part of the rent is taken up in land-tax, and perhaps the owners were either children or old people, then a new lease ought to be sanctioned. We think these three exceptions are the only cases in which the rule laid down ought to be departed from. It will be noticed that we have laid stress on the question as to the suitability of the land for settlement. We have done so, as we consider that if the interests of the Maoris are preserved the interests of general settlement should not suffer. We are glad to be able to say that the Maoris do not object to the promotion of general settlement being ever kept in view. We may add that in the districts named it is not the Maoris who have any large monopoly of land suitable for settlement. If monopolies exist, they are in the hands of Europeans, either as freeholders or Maori lessees. We have the honour to be Your Excellency's most obedient servants, Bobert Stout,) n . • » m vt ;■ Commissioners. A. T. Ngata,

SCHEDULES.

HAWKE'S BAY COUNTY. Schedule 1. Lands leased or under Negotiation for Lease.

3

Name of Block. I Owners. Area. Remarks. \_wahuri re Aute 2a No. I 2a No. 2 2b 3a 3b 3c 3d 3e 33 4A 4b 4c 4d „ 5 a. R. p. 173 0 0 9 1 11 74 2 11 168 3 12 15 1 0 32 1 8 15 1 7 40 2 30 52 1 6 31 0 0 31 0 0 31 0 0 31 0 0 41 1 9