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On the Southern line tenders for the construction of the first length will shortly be invited. The rails for the portion between the Selwyn and the Rakaia were ordered by the mail which reached England in May, and are expected to be here by the time the earthworks are ready.

On the Timaru and Temuka line the plans and specifications for the portion between Timaru and the Washdyke are prepared, and tenders will be immediately invited for the construction of that part of the line.

The General Government has also taken steps for the bridging of the Waitaki, by the preparation of the necessary plans, and the ordering of the iron girders from England.

The geological survey of the Malvern Hills, which the Colonial Government, at my instance, requested Dr. Haast to make, has been completed; and the results of his investigation is the confirmation in some measure of the hopes which have long been entertained of the quality and value of coal in that district. His reports will be laid before you. I have reason to believe that the General Government will extend the detailed geological survey to other parts of the Province.

Correspondence will be submitted to you, showing the arrangements which have been made for the current year for the continuance of Immigration into the Province.

A contract has been entered into for the construction of works in Lyttelton harbour, connecting the railway with wharves to be constructed on the breakwater. Plans and particulars of this undertaking will be laid before you. The sum which will be ultimately required to complete the contract will be in excess of the vote already granted by you for the purpose.

A jetty has been erected between the existing Government jetties, which will partially supply the want which has long been felt, of additional accommodation for shipping in connection with the railway.

A circular letter has been addressed to me by the Colonial Secretary, inviting me "to take the necessary steps for the reservation in convenient areas, and in sites contiguous or adjacent to lines of railway and roads now in course of construction, of blocks of agricultural land, to be laid off in villages and farms for the purposes of immigration;" and also to make reserves of waste lands to be given in payment for the construction of railways, as well as reserves to be taken by the Colony in place of money, chargeable to the Province for such works. An expression of your opinion will be invited upon these proposals.

In accordance with a request contained in a letter received by me yesterday, you will be asked to express an opinion as to the line which the Northern Railway should follow to the north of the Southbrook Station.

Your approval will be invited of the arrangements which have been entered into with the Colonial Government with regard to the construction of the Rakaia Bridge as a Railway Bridge. Correspondence on this subject will be laid before you.

Within a few days of the close of your last session I received a resolution passed by you, as follows:—"That in the opinion of this Council, the claim of the Government against the Bank of New Zealand for interest alleged to be debited in error, and the claim of the Bank of New Zealand against the Government for Commission on Debentures placed...