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Mangatu. —There is a considerable area under grass, and where the land has been broken up and cultivated there is a good sward of grass. The land is very easily worked after it is stumped, but it is rather poor, and needs manure to produce crops such as potatoes, mangolds, cabbage, &c. The people are fairly comfortable, having good homes. These settlers have been helped by having timber on their lands, which they sell at a remunerative price. Katui and South Part of Waipoua Survey District. —There has been a large quantity of bush felled, and a good deal of the land cleared sown in grass, which is doing fairly well. The land is fairly level, and the bush burns readily. There is a creamery in the district, and the settlers will soon be able to make a good living from their sections. Some of the settlers have sold a good deal of timber growing on their sections, which has considerably helped them through. Their stock looks well, of which they have a considerable quantity. Land is eagerly sought after here, and some of the settlers have good offers for their improvements. Tutamoe Survey District and Mangakahia Valley. —This district is entirely new and undeveloped. The large areas of Crown lands are being cut up for selection, and some of the selections have been taken up, but with the exception of one or two they have not had time to make any improvements yet. The land is all bush : a large proportion of broken country, and some very good farming land, which is eagerly sought after. This is one of the best valleys in the country, and with a good road into Whangarei, which is not a difficult matter, the land will be still more eagerly sought after. Bay of Islands County. —The large tract of Crown lands in this county is mostly poor open level land, and can only be made remunerative by letting it in large areas for rough runs. In the Kerikeri district there are many thousands of acres of Crown lands overrun with useless Maori horses instead of feeding herds of cattle. In many instances the ake is becoming a nuisance. The small settlers make their living by fishing and digging gum. Most of them have fulfilled the conditions of their leases-. Grapes grow well in some of the small fertile patches near the harbour. The experiments that have been made here in growing gorse seem to be a failure. Omapere Survey District. —There are a good many sections here still under my supervision. The selectors are thrifty and honest people. They have felled a lot of bush, and have considerable area in grass. There is a creamery started in the district, and I believe others are to be built. The settlers have large quantities of well-bred stock in excellent condition, and the people are well satisfied. Nearly all the Crown land suitable for settlement is taken up. The land in the eastern part of the county has not been under my supervision. Hobson County. —Very little of this county has been under my supervision. The few selections that I have visited in the Kaiwi and Kaihu districts, with the exception of two or three, have complied with the conditions of their leases. The large kauri forests round Tutamoe need closer supervision, in order to guard against destruction by fires. In conclusion, I would like to state that the large areas of Crown lands under my supervision cannot be expected to bring a high price—that where the soil is good the country is broken, and consequently hard to work and not very remunerative. Nearly all the level land is poor open land, a good deal of it bearing gum. Fern is the principal drawback to settlers holding rough land : it overruns the grass, and the land is too broken to plough. General Remarks. Of the 369,123 acres opened during the year, 214,284 acres was opened, after the roads were located, as unsurveyed, the unselected portions of which will be gradually surveyed into sections, and opened as surveyed land, thus allowing selectors to take up the land without the deposit of a survey fee. In every case where accessible sections were opened for selection there was great competition for them. 379,350 acres was gazetted for opening in April and May, some 7,000 acres will be opened about June, and the plans of about 30,000 acres are nearly completed. In addition to the above, 260,197 acres in the portions of the Coromandel, Thames, and Ohinemuri Counties within the Hauraki Mining District was opened as pastoral land under special regulations notified in the Gazette of 19th March, 1903. The Government have acquired under the Land for Settlements Act 12,175 acres in the Otamatea County, which will be known as the Bickerstaffe Settlement, and opened for selection about July. Clerical. During the year 24,283 letters, 2,218 parcels, and 1,014 telegrams were received, and 31,562 letters, 10,800 parcels, and 875 telegrams despatched, an increase of 3,191 letters received and 6,619 despatched compared with last year. 631 cheques for £6,759 were drawn on imprest account for wages of survey parties, &c, and 245 cheques on the official account. 2,259 vouchers were dealt with, amounting to £29,103. Gerhard Mueller, Commissioner of Crown Lands.

HAWKE'S BAY. The information in the following tabulated statement gives concisely the total land transactions during the year, the number of tenants and the area held under each tenure at the 31st March, 1903, and the total revenue received from all sources during the year. The gross revenue for the year is £33,729 os. Bd., which exceeds last year's receipts by £5,494 16s. lid., and is con-