D.—No. 2

No. 62. The Hon. the Colonial Secretary to Dr. Knight. Sib,— Colonial Secretary's Office, Wellington, Bth May, 1865. I have the honor, by the direction of Mr. Weld, to acknowledge the receipt of your letter of the 2nd instant, No. 38, and. in reply, to refer you to his letter of the 29th ultimo, which you had not received when you wrote your letter, and which he thinks will obviate the necessity of any further instructions on the point to which you refer. As regards the employment of immigrants on public works, the Government do not see any sufficient reason for a deviation from the instructions already given. I have, &c, To Dr. Knight, Auckland. W. Gisborne, Under Secretary. No. 63. Dr. Knight to the Hon. the Colonial Secretary. Sir,— Auckland, 13th May, 1865. I have already reported on the progress of surveys in the Waikato District, and incidentally alluded to the progress of the settlements in that district I propose now to make a separate report on the arrangements made for the settlement of immigrants who have lately arrived in this Province under what is called the Waikato scheme, and on the expenditure hitherto incurred in bringing the immigrants to the Colony and in settling them on their lands, including the moneys issued from the Colonial Treasury for the pay of men employed on the public works, —being the subjects included in division 8 of the Memoranda. The accompanying return of the number of immigrants arrived, date of arrivals, where located, &c, gives a view of much of the information called for in the Memoranda. The first vessel which arrived under the General Government Emigration Scheme was the " Steinwaerder," bringing 159 statute adults, being a part of the 1000 which Mr. Berg, the Immigration Agent at the Cape of Good Hope, was authorised to send to this Province. This vessel arrived on the 18th October last. The immigrants were lodged in the corrugated iron building on the North Shore, and such as were willing to work were employed upon the repairs and alterations necessary to render the building suitable for receiving so many persons. The immigrants continued here until about the 6th of January, when about twelve families were removed to their allotments at Waipipi, on the Waiuku River, about six miles from the small village of Waiuku. The remainder, about sixtythree families, were put in possession of their allotments at Whiriwhiri, on the 2nd of February. The lands of these settlements are of average quality and within easy distance of the adjacent forest. The settlers are employed in making public roads in the vicinity of their respective settlements, but there does not appear to have been much progress made in building houses on their lands. The " Alfred," from the Cape of Good Hope, was the next vessel, and arrived on the 18th November last. She had on board I7l| statute adults. These were forwarded to Onehunga without delay, and their number gradually decreased, their proximity to Auckland giving them facilities for obtaining employment. The passengers by this vessel were also located at Waipipi. Since the arrival of the Cape immigrants at Waipipi they have been principally employed in bridging over the numerous small creeks, swamps, and watercourses, in forming the main line of road between this settlement and the village of Waiuku, as well as opening the various branch roads in the immediate vicinity of the settlement, so as to impart a higher marketable value to the adjacent lands. They were put in possession of their lands on the 2nd of February, and all of them have erected huts for protection against the approaching winter. On the 23rd December last the first vessel from Great Britain came into harbor, the " Helenslee" with 259 statute adults on board. As there was no accommodation for them at Onehunga it was thought best to distribute them at Otahuhu, Pukaki, and Mungari, en route for their destination. They were afterwards forwarded to Pokeno, about three miles from the Queen's Redoubt. On the 25th January they commenced work upon the district roads and have been employed up to the present time. Mr. Macintosh informs me that the Pokeno settlers appear well satisfied with their allotments, and the majority have erected their huts. They are employed in making the main line of road leading to Paparata, and have made great progress in the improvement of their settlement. The " Maori," from the Cape of Good Hope, arrived on the same day as the " Helenslee." She brought 270 statute adults, who were located in the Onehunga barracks. On the 13th of February, they were sent to Drury, and are now being put in possession of their land. They have been employed road-making in the vicinity of Drury. The " Reihersteig" arrived on the 24th of December, the day after the " Helenslee" and " Maori." She brought 124 statute adults, who were put into tents at Onehunga. On the 23rd of January, they were forwarded to their settlement at Maioro, nearly opposite Port Waikato, and distant about eight or ten miles from Waiuku. The land at Maioro is of very superior quality, but there is a great scarcity of wood within an available distance of the settlement. A day or two after their arrival they commenced road-making on the main line to Waiuku, and on the 31st March they took possession of their allotments. Some few are putting up their houses. The scarcity of wood is a drawback to the settlement; at the same time its vicinity to Port Waikato, gives the settlers facility in obtaining employment. The " Matoaka" from London, with 36H adults, arrived on the 3rd of January, the passengers were forwarded to Onehunga on the succeeding day. On the 3rd of February these immigrants were sent to Waiuku ; and on the 9th of March fifty-four families were put in possession of their allotments at Taurangaruru and Karioitahi in the Waiuku District. The remaining seventy-three families it is intended to locate at Kohekohe. These people are employed in making public roads near their respective .settlements ; but I do not learn that they have made much progress in building huts on their land.

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CORRESPONDENCE RELATIVE TO MAINTENANCE