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With regard to Small Grasing-run Xo. 45, I have written to Messrs. Bloomfield Bros., as suggested, but as yet have not heard from them. Upon receipt of their reply I will let you know their terms. In connection with the proposals made with regard to No. 46, 1 wish, with all due deference to the Minister's decision as therein conveyed, to draw your attention to what appears to be conflicting opinions with respect to the question of exchanging small-grazing-ruiis tenure to renewable leases under "The Land Laws Amendment Act, 11107," for by reference to a former decision conveyed in your memo. 57528, of the 22nd October last, it was stated that the above Act abolishes the exchange of small-grazing-run tenure into lease in perpetuity, and this is confirmed by the provisions of section 50 thereof. Consequently the conversion into renewable leases does not appear feasible. Section 17 of ''The Land Laws Amendment Act, 1907," quoted in your letter, appears to apply to conditions of leases. I therefore respectfully submit that section 50 renders the course now suggested impracticable. Will you kindly advise me as to whether 1 am correct in taking this view of the matter. Henry Trent, Commissioner of Crown Lands.

Department of Lands and Survey, District Office, Napier, 6th April, 1908. The Under-Secretary for Lands, Wellington. Re Small Grazing-runs. Referring to the second paragraph of your memo, of the sth ultimo, I have to inform you that in accordance with your instructions 1 wrote to Messrs. Bloomfield Bros., and I hereto append a copy of their reply to my communication. It xvill be seen that they adduce certain reasons why the acquisition of the piece of land referred to xvill be adverse to their interests, inasmuch as a very considerable amount of additional fencing will he'entailed, the cost of which will be very heavy, owing to the difficulty of obtaining material, and the nature of the ground to be fenced. The price they ask for the land£B 10s. per acre —is the same as their first offer (afterwards withdrawn), which appears to be very high as compared with the- value placed upon the run — i.e., £.3 10s.—unimproved; but, taking into consideration the advantage it xvill be to the disposal of the adjoining land by affording homestead-sites and access to the road, I am of opinion that the offer should be accepted. The price compares favourably with that paid for Kanakanaia, which adjoins this run. I will be pleased to receive notice as to the decision arrived at at your early convenience. Henry Trent, Enclosure : Copy of letter. Commissioner of Crown Lands. Dear Sir, — Auckland, 3rd April, 1908. Your favour of the 10th March has been forwarded here by our manager at To Hau-o-te-apua. We certainly do not look upon this portion of the property as by any means isolated. It is a portion of two huge paddocks, which are fully and expensively fenced. It will be a heavy cost to us to refence, as the road-line is mostly on steep siding, and our fence will be on the low side all the way, with the material thrown over the hank when making formation all on the move, being loose: also the considerable distance to cart material, &c. We estimate it xvill cost us up to £100 per mile for a new fence, and in offering the land at £8 10s. per acre we think xve are well within the value, considering the expense we are put to in refencing. In making this offer of £8 10s. per acre we are actuated b\ a desire to meet your Department on a fair basis, and to give them every facility in our poxver. We would like to know at your early convenience the exact part you wish to acquire. Yours, <fee, Bi,ooMi'ii:i.i) Bros. (W. J. Carter, Secretary). The Commissioner of Crown Lands, District Office, Napier.

Commissioner of Crown Lands, Napier. 11/4/1908. O.H.M.S. Ite your 2459, of the sixth instant, small grazing-i un forty-five: Please wire me how many acres you estimate will require to be purchased from Bloomfield Bros., between boundary of run and road. You do not mention it in your memo., and it is most important part of all. William Kensington, Under-Secretary. (Telegram answered.) Napier, 13th April. 1908. Under-Secretary for Lands, Wellington. Approximate area proposed to be purchased from Bloomfield Bros, between boundary of Run No. 45 and road is 119 acres. H. G. Price, For Commissioner of Crown Lands. The Hon. the Minister of Lands.—This is the area referred to as being requisite to purchase in order to obtain frontage to a road for the new proposed subdivisions. The 119 acres will cost £1,000. This xvill have to be appropriated by Parliament before payment. If you concur, I can so inform the Commissioner. —Wm. C. Kensington. 13/4/1908. Take under the Land for Settlements Act, and then incorporate Run No. 45.— R. McNab. 15/4/1908.