D.-N0.3.

settlement. The Council believe that the object of the Assembly in devoting such large sums to this purpose in the various provinces in the Northern Island was to open up the country by means of military roads, as well as for, or rather in connection with, the settlement of the country by a European population. * The two great works of this nature which are called for in this Province are the construction of the great Trunk line of Road connecting Hawke's Bay with the Taupo District, and thence by the Waikato Military Settlement to Auckland, and the completion of the Main Trunk line South by the formation of our share of the 50 miles of road through the forest known as the Taniaki Bush, and •which has been already referred to in the quotation from the speech of the Superintendent of Wellington. The importance of the works indicated, the Council feel need not be dwelt upon. Minister! must be thoroughly alive to the immense military advantages which would be derived from them, and the necessity which exists for their construction before any successful efforts can be made for the civilization of the natives in the interior, and the making them amenable to the law. > Before leaving this subject, the Council would desire to point out that the Province has already from Provincial funds during past years, done a great deal towards forming those parts of the Trunk lines indicated which lie within the Province. That a good road exists for a distance of GO miles on the great South Trunk line, and that the great Northern Eoad has had large sums spent upon it, and is for a distance of 41 miles a good summer road for drays, and at all times open for horse traffic. The completion of that portion of the South Eoad which lies between the Wairarapa open country and the Euataniwha Plains, would form a continuous line of road of 200 miles in length, fit for any kind of traffic, and connecting the ports of Wellington and Napier with each other. The extension of the Great Northern Eoad would open up for settlement the large districts in the centre of the island, and enable the stockowners of Hawke's Bay to supply the Military Settlements on the Waikato, and the Province of Auckland, with live stock, to the material benefit of both. The Council, having indicated the Public Works which they recommend should be constructed in the Province with the funds allocated by the Parliament of New Zealand for that purpose, will now proceed to express their views as to the most beneficial mode of appropriating the sum of £30,000 devoted to purposes of colonization. The Council desire to express their strong opinion that little permanent benefit would accrue to the Colony or the Province by the introduction of a large body of what are termed Military Settlers. In place thereof they would suggest that the real object the Colony has in view would be more successfully met by introducing from the home country a class of settlers accustomed to agricultural pursuits, who, bringing with them their wives and families, would become permanent settlers, and, by peopling the country, would effect the result aimed at in a more certain and prosperous manner. The Council would therefore suggest that the immigration for this purpose should be conducted under the charge of an officer, who might be nominated by the Province and approved by His Excellency's Government, and who, by judicious selection in the United Kingdom, might send out and people the Province with a class of valuable settlers. The Council think that it would not be requisite to offer a free grant of land to intending immigrants, and agree with the Superintendent of Wellington in thinking that a good class of men could be found eager to avail themselves of the chance of settlement in the Colony afforded by a free passage being found them, and that it would be better to give them their land subject to the payment of a certain price for it at a future period. As this course has been approved in the case of the Province of Wellington, the Council hope a similar deviation may be permitted in the General Government scheme in the ease of their own Province. It is unnecessary perhaps to state that the Council concludes that the public works which they have recommended should be carried out, would be formed by the Immigrants, who should in their opinion be located in the districts in which those works are to be prosecuted, and in all cases that allow of it upon the actual lines of road. The men should, in the opinion of the Council, be allowed to work upon the roads at the usual daily rate of pay current in the Province on such days as they may desire and be able to spare from the occupations necessarily attendant upon their settlement in a new country. The pay they would receive for the time they could devote to road making would, it is believed, be sufficient to keep them and their families during the period that must necessarily elapse before their settlement can become self-supporting. The Council have expressed their opinion upon the very important interests that appear to them connected with the outlay of tie large sum allocated to the Province of Hawke's Bay by the General Assembly for purposes of coloniz ation and settlement; and although they have freely offered their advice as to the manner in which the scheme should be conducted, they have done so in the hope of assisting rather than of obstructing the plans of the General Government. The Council has only, in addition, to add that they feel assured the Superintendent will place their views before the Government in such manner as will prove most conducive to the attainment of the ends they have proposed, and which they belive to be of incalculable advantage to the future interests and progress of the Province.

No. 3. THE COLONIAL SECRETARY TO SUPERINTENDENT HAWSE'S BAY. Colonial Secretary's Office, Sib,— A ackland, 29th September, 1864. I have thr honor to acknowledge the receipt of your letter of the 30th ultimo, on the subject of Immigration to he Pi ;mv of Hawke's Bay. In reply, I have to inform your Honor that the One Million Loan was put upon the market by Messrs. Julyan and Seargeaunt on the 12th July last, and that only a small portion of that amount was placed at a minimum of 90.

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