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Mr. M’Kerrow’s Report on the Reconnaissance Survey of the Upper Clutha Districts, and on the Chronometrical and Astronomical observations connected therewith, have already been published. The service was one of great delicacy and difficulty, and having been most satisfactorily conducted by that officer, much credit is due to him.

In glancing over the Returns, I trust it will appear that there has been no retrogression either of energy or zeal on the part of the other officers of the Department.

The cost of work will be seen to be as follows:— Geographical data of Lindis Peak, Mount Nicholas and Mount York, £198 15s.; 1446 square miles of Reconnaissance Survey cost £343, or 4s. 9d. per square mile; 397 square miles of Triangulation cost £1503 13s. 5d., equal to £3 15s. 9d. per square mile, or three-halfpence per acre; 184,765 acres of rural sections cost £4861 4s. 5d., or 8½d. per acre; 2644 town quarter-acre sections cost £1149 18s. 7½d., or 8s. 8¾d. per section; 413 lineal miles of road survey cost £393 8s. 9d., or £9 11s. 8d. per mile. It will thus be seen that, with the exception of rural section survey, the cost of work has ruled higher this year than in former years, and one cause is apparent—viz., the higher rate of labour; but other causes must be mentioned—viz., the constant shifting that the Surveyors have been subjected to, and the great distance of many from supplies; this last has particularly affected the triangulation.

The shifting has affected more or less the whole staff, particularly Mr. Shank’s party, who had no two surveys contiguous, but all distantly separate.

This circumstance militates much against the progress of the Surveyor, and should if possible be avoided. The altered requirements induced by the discovery of gold of course afforded cogent reasons for breaking up the arrangements that were made for last year.

Annexed is a return published by the Survey Department of Victoria for which I am indebted to Vincent Pyke, Esq. It will partially serve as a comparison of cost, though it does not give the details of the different classes of survey, which will be seen to vary very much.

The measures for this season I would respectfully recommend to be as follows:—

Mr. M’Kerrow to go on with the Reconnaissance Survey of the Interior till it be completed; this will have the effect of opening all the available country in the Province to the stockowners. On the completion of this survey I would recommend Mr. M’Kerrow’s employment on the Geodesical branch, at first under my own charge, till he gain practice in the various operations, so as to be left to his own management.

I would advise two surveyors to be employed triangulating the Lower Clutha, Pomahaka, Tuapeka, and Waipori Districts; seven surveyors to go on with rural sections in the South Clutha, Tuieri, Waihola, Peninsula and Blueskin Districts, with the view of overtaking all the unsettled and outstanding land applications; two to go on with the surveys of Pomahaka and Otepopo Districts.

By this means about 400 square miles would be triangulated, and 150,000 acres surveyed into Rural Sections.

During the last year the Lithographic branch of the Survey Office has worked steadily. I find the wages have amounted to £326 11s. 5d., and plant to £189 14s. The actual money return has been from maps sold amounting to £151 8s. 11d., but the value of work done according to trade rates is (as per return annexed) £1297 7s. 6d. Independent of all this I respectfully suggest that this branch is well worth maintaining, for the production of Survey maps alone, owing to the increased facilities those give to intending land purchasers; but this coming year I believe will show a great increase of income from the accumulated stock of maps on hand.

The West Coast still remains a terra incognita to this Department; and though I have reason to suppose that there is not much country available for pasture, nor much for agriculture, yet from the reports of fine timber, coal, and copper that have reached us, it would be well to have the mysteries of the locality cleared up, and its resources made known. If a steam coal could be procured, and there is said to be abundance of seams, the sea-borne trade of this part of New Zealand (whether coasting or over sea) would be most beneficially affected. Possibly Dr. Hector might find it convenient to accompany an expedition.