to engage in a contract on Native Land. Notwithstanding the anxiety professed by the principal chiefs in the district to have the Te Aute Road made, after preventing the Middle Road from being commenced, and their promises to afford every encouragement and assistance, they are now constantly throwing obstacles in the way, the men employed procuring metalling for repairs have been turned out of several quarries, which were opened at considerable expense. So much is this the case, that I anticipate, as stated in my letter of the 20th ult., the complete stoppage of traffic next winter on this the principal Line in the Province, for without being allowed to procure materials for repairs it must go to ruin.

There has been every effort made to preserve a good understanding with these people. They have been employed as contractors—they have been offered and sometimes accepted employment for themselves and their carts by the day, and there has been no quarrel between themselves and the Europeans engaged by the Government. Money in every case of obstruction has been demanded, but if I am to regard the stakes set up alongside the Road as boundaries between different owners, the Province must be prepared to have a demand made on it at the end of every quarter or half mile, being about the distance the divisions are apart. Even if it were possible to agree to such numerous claimants, it is not so certain that after a little time it would exempt travellers from equally numerous applications for tolls.

I will only mention another circumstance showing the difficulties this department has to submit to. Last year Te Teira contracted for the repairs of the Bridle Track from Tongoio to Mohaka, but he never did anything to it. He was repeatedly spoken to, he was written to, urging him to do so, as the Public were suffering great inconvenience, natives as well as Europeans. His only reply was to wait. At length I was obliged to send a party of Europeans to repair it. And although the road then was nearly impassible at Waipatiki, he would neither allow them to work on it, nor would he send any person to do so himself. I am sorry to write in this manner of a people with whom I have been on good terms since I came here, but I wish to acquaint the Public with the cause of some of the inconveniences they suffer in the hope that steps may be taken to remedy an evil daily increasing, and that seriously threatens the communication of the Province.

The cost for maintenance on the Te Aute Line has been in excess of the estimates owing to the Traffic that used to pass over the Middle Road having been nearly all transferred to this. The contract at Havelock has been completed over a swampy piece of the Line. A part of the Line between Awanui and Waitahora has been metalled. A part of the Line from the boundary of the College Lands to the Kaikora Creek is let to a Contractor, and now in progress; another between the Creek and Waipawa; and at Waipawa a further section is also progressing in the hands of a contractor: and by private arrangement, a less steep descent is making into the Waipawa river, from the bank at Waipawa. The road has been made and mettled across a deep Gorge between Watt’s and Knight’s Lands and Waipawa Flats. The metalling of sixty chains of the Line is let to the natives between Pokawa and Te Matai for some time, but not yet commenced.

The works most urgently required, in addition to the above, are forming and metalling the Road through Havelock, and from Havelock to the Louisa Creek, metalling the made Road from Waitahora to the Puki-Puki or Awanui, making a section of the Line through some swampy ground at Te Matai, making and metalling along some wet ground, and side-cutting between the Rev. S. Williams’, and the silver stream, and bridging a small creek between the Kaikora and Abbotsford: These works, in addition to the contracts in progress, will render this a good line.

I cannot agree with those persons who say the Middle Road should be abandoned, or that one Line would suit the requirements of the Inland Districts. From Patangata to Havelock the settlers south of the Tuki-Tuki are cut off from the Te Aute Road, by a range of hills, or by swamps, and to open communications through either would cost more than will be necessary to remove all obstructions on the Middle Road. I would, therefore, recommend that the formed portions of the Line should be metalled, except at Ngawakatatura where a dray Road only has been made, and which, in part, is threatened by the encroachments of the River. Metalling over the Culverts here will be sufficient. Owing to the convenience of material, I have calculated on its being done at a low price. Only a small portion of the Road near the Gorge has been metalled during the past year. If funds for the purpose can be spared it should be completed, and the sidecutting between Havelock and Mr. Foster’s station, and between Mr. Foster’s and the Gorge should also be executed, and then drays will find no difficulty in travelling over the line.

Beyond repairs, nothing has been undertaken on the Porangahau Road. The advertisements for tenders for metalling the approaches to the Eparaima Bridge failed in inducing any contractor to offer to perform this work, which is most necessary. The line has suffered little during the year: A portion of the Road between Waipawa and Ruataniwha has been encroached on by the river, and a new line for that distance had to be laid off; but for making it I have been as yet unable to find a contractor at a fair price: The rest of the Road is in good repair.

I have arranged for bridging the Waipawamata, and a small stream adjoining it, Owing to the shifting of the outlet of the Tuki-tuki, &c., at Clive, rendering the removal of the Punt necessary, a new Bridge has been required to approach the Ferry. It is now in progress, and will shortly be completed.