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Minister for Public Woeks to John Knowles. (Telegram.) Dunedin, 3rd December, 1878. Thames County Council had better be informed that they will be replied to on my reaching AVellington, where I hope to arrive early next week. J. Macandeew.

J. Knowles to J. Kilgoue, Mayor, and Others. (Telegram.) AVellington, 9th December, 1878. I am directed to inform you that the Hon. Mr. Macandrew leaves for the North this afternoon, and that you can therefore see him in reference to your telegrams re Grahamstown end of railway. J. Knowles,

(Telegram.) W. A. Murray, Esq., AI.H.E. 10th December, 1878. Re your letter of 26th November, relative to commencement of Thames and Waikato line at Te Aroha. Alinister and Air. Blaekott ieft yesterday for Auckland. AVill you please see them thereon ? J. Knowles.

Air. AY. A. Alurray, AI.H.E., to the Hon. the Alinister for Public Works. Sir,— Piako, 16th December, 1878. I wrote to you on the 26th ultimo, but Air. Knowles telegraphs that you aud Mr. Blackett had left just before my letter reached Wellington, and suggesting that I should see you. I advised that, as 1 would be leaving for Otago soon, I should be glad to know when, in accordance with your wish, I. could see and make certain recommendations to the Engineer. I shall be glad to see Air. Blackett, but think that it would bo undesirable that the gentleman who is blamed for many costly errors on the Auckland railway line should also be intrusted (if at all) with laying out the Thames line. I also advise that the line should be begun at Te Aroha, on Thames, for these reasons: The railway required nothing but to lay down the sleepers and ballast, and some ditching, and, in a few places, some earthwork and fascines where at present a little soft ; that the unrivalled water carriage from Auckland to Te Aroha would supply material cheaper than you could even by rail and cartage by way of Hamilton till that bridge (which, had the main line been laid out right, would have been unnecessary) is made ; and that is the only work of any consequence to prevent the line being made iv six months, and will cost as much as the whole line between Te Aroha aud Hamilton, excluding sleepers and rails. Beginning at Te Aroha would give employment to Thames unemployed, be a compromise, and please the Thames people ; would render available for railway use the best kauri, rata, and puriri in the colony. It would also help to sell the Government laud, whereas at Hamilton the laud is nearly all in the great land company's hands. I would suggest that, in surveying the Te Aroha town, the town lots should not exceed one rood, and that suburban lots of from oue to five acres be laid off on deferred payments ; rural lots not to exceed 320 acres, and half at least on deferred payments, with settlement conditions. There should, I think, be no delay in offering part of these lauds for sale; aud with a considerable addition thus to the settlers, and the railway available for the five hundred Thames \ rolunteers, we should be under no further fear of Native troubles. I have, &c, The Hon. the Alinister for Public AVorks, Auckland. AY. A. Murray.

Mr. J. Blackett to Mr. J. Stewaet. Memorandum for Mr. Stewart. Auckland, Public AVorks Office, 19th December, 1878. Re AVaikato-Thames Railway. —Hon. Minister for Public AVorks directs that the works for the above be commenced at Grahamstown as soon as the necessary surveys can be made, for which please make very early arrangements. I expect plans to be sent from the Thames, which will enable me, on their arrival, to give detailed instructions. In general terms, the intention is to get ready a i'evf small contracts, say, one for station reclamation on the foreshore, beginning at Kauaeranga AVharf; one from same point upwards, say to right-angle bend of new County Road; and one from that point upwards, say three, four, or five miles, as most convenient: these being got ready so as to give almost immediate employment. The survey of the remainder of the line could be proceeded with, and other contracts for a few miles got ready from time to time. These first contracts will be formation only. The Minister is iv correspondence with the Hon. the Native Minister as to securing the lands necessary for the line, and you will be duly informed when the arrangements are complete ; but before this is the case the work, excepting the foreshore reclamation, must not be begun. It will be found that the course of the railway line must necessarily follow that of the County Road, or very nearly so, say on the river side of it. The road is one chain wide, and the same width alongside of the road will probably be enough for the railway, cutting off any unnecessary curves, and avoiding, if possible, any Maori cultivations, in crossing which opposition might be met with. The Minister directs that every effort be made to carry out this work energetically aud expeditiously, so that real progress may be made to a large extent during this year. JonN Blackett.

Mr. Beere — 19th December, 1878. You will please prepare to proceed to this work with all energy, aud at the earliest possible moment after receipt of plans. I will go with you. John Sheehan.