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under the subsequent judgment of the Court, which excludes the Ngatiraukawa, except the three resident hapus, from the country lying between the Rangitikei and Manawatu rivers.

The decision of the Court is the more satisfactory considering that it was delivered by judges specially named by the natives themselves, or those acting for them; and judges who from their position and experience were eminently qualified to adjudicate on so important a case.

To show how complete is the vindication of the purchase, I would point out to you that not only are my published views as to the tribal and territorial status of the Ngatiapa confirmed by the decision on the issues submitted to the Court, but that even in the details of my proposed arrangements with the Ngatiraukawa, the Court has completely endorsed the fairness and justice of my proposals. As I have previously informed the Council, there was a small number of bona fide Ngatiraukawa dissentients to whom I considered it necessary to make an award in land. To these non-sellers I proposed giving 6000 acres in full satisfaction of their claims; and it is a significant fact that omitting the 200 acres awarded to Wirihari—who was admitted by the Crown as an act of grace—this is the exact aggregate quantity awarded by the Court to the several sections of Ngatiraukawa claimants.

Apart from this, I may mention, that out of over a thousand claimants only sixty-two were admitted by the Court, that being the exact number of recognised dissentient claimants whose names were on a previous occasion laid before you. I need hardly assure you that it is very gratifying to me personally to find the whole of my views upheld by the highest native tribunal.

I would also inform you that during my recent visit to Rangitikei, I succeeded in arranging a division of the back-rents, to the apparent satisfaction of the several sections of claimants, who, after four days of fruitless “korero”, consented to leave the matter entirely in my hands.

And I must here acknowledge the readiness with which the present Ministry, in redemption of a pledge of their predecessors, advanced the necessary funds by way of loan to the province to enable me to fulfil my engagement with the natives. The squatters have been called upon to pay up the arrears of rent. If they do so promptly, as I believe and trust they will, I propose in accordance with the recommendation of a committee of the Council to protect their interests by adding the value of their improvements to the upset price of the land immediately surrounding their homesteads, as was done in the case of the Lower Manawatu settlers. If on the other hand they refuse to meet their just engagements, legal proceedings will be at once instituted against them by the Government, and the penal laws will be strictly enforced for illegal occupation.

I have so repeatedly borne testimony to the value of the services rendered by Mr Walter Buller in these protracted negotiations, that I gladly draw your attention to the high and well deserved tribute paid to him by the honorable the Premier, for the able manner in which he has fulfilled the difficult and arduous duties entrusted to him.

I hoped that this would have been the last time that I should have had occasion to refer to this block, but I regret to inform you that the same parties by whose unprincipled opposition the settlement of this question has been so long delayed and the peace of the province so repeatedly jeopardised, are still persisting in their attempts to excite the natives to prevent the survey of the land, for a special messenger arrived a few hours ago with a letter from Mr Stewart stating that on arriving at the Oroua, he had been told by the natives not to proceed with the survey. Until these parties find themselves liable to the pains and penalties of the “Disturbed Districts Act,” as I trust they shortly will, it is hopeless to expect them to cease from their vile intrigues. But until I receive advices from Mr Buller, I am not inclined to attach much importance to Mr Stewart’s information. We may expect, as soon as the telegraphic communication with Wanganui is re-opened, to be put in possession of the real facts of the case.

By virtue of the power conferred on me by the Provincial Audit Act Amendment Act, to borrow for the public service any sum not exceeding one-fifth of the previous year’s provincial revenue, I have arranged with the Bank of New Zealand for an overdraft of £10,000. This with the £3000 released by the Commissioners of the Sinking Funds, will enable me, as soon as the securities are realised, to clear off all existing liabilities.

By the consolidation of the Wanganui Bridge, the Bank and Reclaimed-Land loans, amounting in the aggregate to £72,000, which will take place on the first of next January, an annual saving to the province of about £2600 will be effected.

I have also to congratulate you on the General Assembly having agreed to advance the sum required to erect the Wanganui bridge, the foundation stone of which was laid amidst great rejoicings on the 9th instant. And from the known energy of the contractor there is every reason to believe that the bridge will be completed and opened for traffic within fifteen months from the present time.

As compensation for the losses sustained by him in consequence of the Government not having been in a position to authorise him to proceed with the work after the acceptance of his tender in July of last year, I have agreed to increase the amount of the contract from £12,850 to £14,000, an arrangement which, when you are made acquainted with the nature and extent of his losses, I have no doubt you will regard as reasonable and equitable.

The opening up of telegraphic com...