flock, and one which will entail, in many ways, a serious pecuniary loss to the proprietor.

I will now advert to a subject of vital interest to the sheep farmers of this province, namely, the slow, but not the less certain, spread of Scab in the flocks of the Whareama and East Coast. This disease has advanced, since the date of my last Report, a little nearer to the southern boundary of this province, in other words, there is one clean flock the less between us and a scabbydistrict.

About four months ago I received a communication from the Inspector of Sheep for the Whareama and the East Coast, to the effect that this disease was on the increase in that part of the Wellington province and that Messrs. Maunsell’s flock had become scabby. After consulting with your Honor on the subject, I at once proceeded to the Whareama, and saw Mr. Telford, the Inspector, who courteously gave me all the information I required, as to what flocks were scabby, and which were doubtful, and described the appearance and nature of the country inland of the Whareama and Mataikona rivers, and the state of the flocks in those localities, and the probability of certain flocks mixing.

He informed me that the country inland of Mataikona was very much altered, owing to extensive bush fires, to what it was many years ago, when I knew it; that sheep were now kept as far back as the lower slopes of the Puke-toe range; that possibly, in the course of a few years, there would be no rough country or other boundary to prevent sheep straying or mixing with Sutherland’s or Featherston’s inland flocks. From these, and other inquiries which I made, I found that the idea of securing the Mataikona block for a cattle station, and removing all sheep from it, which I suggested in my last Report, would have to be abandoned.

On my return, I endeavoured to open negotiations with the Messrs. Speedy, of Wainui, for them to clear all their sheep from their run, and turn it into a cattle station, and to shepherd well the boundary of the province, which is also the south boundary of their run. This run is well adapted for the purpose desired, from the almost interminable forest which encircles their run, and comes down wedge-shaped to the coast. It is extremely improbable that sheep from the Akitio run would ever work through it at the back to the clear country on the Porangahau range, or the head of Mangamaire valley; while the beach, and coast-line, if carefully shepherded, would effectually prevent sheep from straying coastwise to the Tautane flocks. As the Messrs. Speedy were not prepared to state their terms, without further consideration of the subject, they subsequently sent me a statement of the terms on which they were prepared to carry out what was required of them.

The terms being considered much too high, I again, in conformity with your Honor’s instructions, proceeded to the southern boundary, to examine the country about the Waimata stream, and back into the bush, to ascertain if a good line could be found for the erection of a sheep proof fence, and also to ascertain if a modification of the terms proposed by the Messrs. Speedy could not be obtained.

I was, in some measure, successful in both these efforts. I will now state, as briefly as I can, the Messrs. Speedy’s terms; they want £270 per annum, and their flock of sheep, numbering about 4,500, purchased of them by the province at 3s. per head; the sheep to be delivered at their yards, in good travelling condition, up to 1st March next; if after that time, a reasonable allowance to be made for growth of wool; this offer to remain open in all 1870, duration of proposed agreement, seven years. They, on their part, would undertake to keep no sheep on their run (except a few wethers for home use, to be kept in a secure paddock) and to shepherd the Waimata and Wainui boundaries, keeping back the Akitio and Tautane sheep; and would fence the Wainui boundary, if they were permitted to cut timber for this, and other fencing, on the Crown lands of the surrounding bush.

I must not omit to state that Mr. Herbert has some 200 acres in this block, abutting on the Wainui river; it is fenced off into paddocks, but he keeps sheep in them.

I will now proceed to Scheme No. 2, viz:—the erection of a fence, on or near the boundary line of the two provinces. Accompanied by Mr. W. Speedy, I examined the country about Waimata; found it would be impossible to fence close to either side of the creek; found a very good line on the south side of the creek; starting from the beach, it runs over about three miles of tolerably clear hills, thinly studded with burnt timber, it then enters the bush, and runs about a mile, and terminates at a gully running into the Waimata creek. This gully is not impassable for sheep, and it is to be regretted that no better termination to a fence presents itself anywhere near this line. There are no difficulties in the way of erecting a fence on this line, and I think sufficient totara timber could be procured within a moderate distance of the line to supply posts. I saw a good many mobs of wild cattle on this line which would I expect play up with a fence for the first few months until they became accustomed to its restraint. If this scheme is determined on, it would, I conceive, be necessary to keep a careful and trustworthy shepherd on the line, whose sole duty it would be to walk the line, and keep the fence in repair, and keep sheep back a good distance from either side of the fence.

If scab got into the Akitio flocks, if not actually necessary with a shepherd permanently on the line, it would certainly be safer to have a double line of fence to effectually guard against contagion, and a few chains of returning fencing at various places in the bush, which would tend to baulk sheep in attempting to travel along the line. I think I have gone into the main details of this measure, and will now shortly review the merits and respective cost of the two schemes. The Wainui run ensures us about four miles of a coast boundary between the two provinces, with a dense bush at the back, a bush so extensive, as almost to preclude the possibility of sheep finding their way through it. The coast hills are broken or divided by two creeks, which form obstacles to