1046 THE NEW ZEALAND GAZETTE. [No. 48

At Rawene and Waima a number of misguided Natives, labouring under a supposed grievance respecting the payment of the dog-tax, lately armed themselves, and threatened open resistance to the law. Mr. Hone Heke, M.H.R., and many other Native chiefs were much concerned at their ill-advised action, and urged them to make voluntary surrender to the law. Adequate, prompt, and decisive measures were taken by my Ministers, and the principal wrong-doers surrendered, and were arrested.

I am pleased to say that, with the exception of the local trouble at Waima, the most cordial and friendly relations between the two races prevail.

The Jubilee of Otago marked a pleasing epoch in the history of the colony, and the enthusiasm and patriotism shown by the vast concourse of people assembled in Dunedin expressed a warm and hearty feeling towards those in Otago who had performed the good work of colonisation. In connection with the Jubilee an industrial exhibition was held, and the display of manufactures, minerals, natural products, and works of art was of great interest and value as an evidence of the wonderful progress that had been made in fifty years.

I am glad to be able to state, with respect to the Defence Forces and harbour defences, that a Defence Committee presided over by the Commander of the Forces has been set up, and as a result of their labours my Ministers hope to be in a position shortly to submit a scheme of defence for the colony to the Imperial Colonial Defence Committee. The disturbed condition of international relations throughout the world has caused my Advisers to deem it expedient to increase the number of Volunteer corps, and the supply of small-arms of modern type, munitions of war, and armaments. The response to the demand for an increased number of Volunteers has been beyond all praise. In connection with the Volunteer movement, proposals for increasing the number of cadet corps in connection with the primary schools, under improved conditions, are under consideration.

With respect to the Cook Islands, towards the close of last year I received communications from the British Resident, the Arikis, and a section of the settlers intimating that difficulties had arisen among them, and that a deadlock existed between the Resident, the Federal Government, and the Legislature. Mr. Moss desired that an inquiry should be held. Sir James Prendergast, the Chief Justice, at great personal inconvenience, proceeded to the islands, held an inquiry, and reported upon the situation. From the report it will be seen that the condition of affairs is unsatisfactory, and that the Resident has lost the confidence of the natives. Under the circumstances, while it is fully recognised that Mr. Moss has, in his position as Resident, rendered valuable services, his retirement is deemed advisable, and it will be necessary to appoint a successor. The report of the Chief Justice will be laid before you.

The Victoria College Council has been elected, and the initiatory steps have been taken to open the College and promote higher education in the central parts of the colony. A suitable site for the College building is required, and assistance in this direction is necessary. Legislation and financial assistance in the interests of technical education is most desirable, and this subject is highly deserving of your attention.

During the year, and since I last met you, considerable areas of land have been purchased in different parts of the colony under the Land for Settlements Act, notably the Starborough Estate in the Provincial District of Marlborough. Negotiations for the purchase of large estates in several parts of the North and Middle Islands are proceeding satisfactorily; and the success that has attended the close and successful settlement of the people upon the land by such means encourages my Advisers to believe that the necessary funds provided last year for acquiring additional lands were a prudent provision, and will confer lasting benefits upon the people of the colony.

The fullest information will be placed before you respecting the removal of a portion of the Parliament Building and the partial erection of a new building. Within the limited time available every effort has been put forth to make satisfactory provision and accommodation, so as to enable the work of the session to be carried on with as little inconvenience as possible.