C— i.

New Land offered i Advantage was taken of the temporary termination of tho railway at Gleiihope to subdivide ill that neighbourhood at convenient distance from the station several areas of good pastoral CroWn land, comprising the following blocks: Lamb Valley, Station Creek, Howard, and Rotoiti, In addition, the Lake Run was purchased under the Lands for Settlement Act, and will be available for selection in the spring, upon completion of certain exchanges. The united, area of the above lands in this locality is about 52,000 acres, which have been surveyed and placed under loan for roading purposes, which in most cases is now well in progress. In the neighbourhood of Nelson the reservation for forest purposes over some 3,000 acres of the Wai-iti Hills was lifted, and this area has been surveyed and selected. The Waimea Block, in Aniseed Valley, containing some 10,000 acres, has been surveyed, and will be offered shortly on conditions which it is hoped will conserve mineral interests. An extension of this latter block, called the Waimea North, containing some 3,000 acres, has been placed in the hands of the surveyor. In the Buller Valley, between Glonhope and Murchison, the Gowan Block, of some 11,000 acres, has also been surveyed, and will be offered on renewable lease as soon as the plans are available. The Owen North Block, comprising some 3,000 acres, has been surveyed and mapped, and is being scheduled for offering. An extension of the Gowan Block, estimated at about 5,000 acres of high pastoral country, has been placed in the hands of the surveyor, and will probably be available next autumn. Southward of Murchison the survey of an area of 6,000 acres fronting the Matakitaki, known as the Matakitaki East Block, and extending from Six-mile to Horse Terrace, is approaching completion. Lying along the main road this block presents unusual facilities of access. Still further south an area of some 4,000 acres in the Upper Maruia, between Station Creek and Alfred River, is under survey. An extensive reservation in connection with the Maruia Hot Springs has already been laid off, with a view to the more effectual exploitation of the springs in the near future. Along the track from Reefton to Amuri by way of the Lewis Saddle several stock reserves have been made, with a view to improved facilities of intercourse between the two districts. Near Charleston the surveyor has well in hand Waitakere Block, of some 6,000 acres, in the neighbourhood of Mad Man's Creek. The survey of the Mokihinui Forks Block, some. 4,000 acres, behind Seddonville, is all but finished. This block has been scheduled for loan, and should be readily taken up. At Karamea the surveyors are pushing on vigorously with an area of some 10,000 acres. The usual small-spotting selections under the regulations for mining districts scattered oyer the counties of Collingwood, Buller, and Inangahua have received attention at the hands of staff and contract surveyors. In addition to the above areas already under survey, the lauds proposed to be offered during the ensuing year comprise, besides Orikaka Block, several large areas which will shortly be in juxtaposition with the railway terminus at Inangahua Junction. It is also proposed to open for settlement an additional area of land southward of the Brighton No. 2 Block, and lying along the north boundary of the Grey County. The bulk of the land selected during the year has been either on renewable lease within national-endowment areas or on pastoral license under the regulations for mining districts. An area of 9,000 acres, Maruia South Block, has also been surveyed ready for selection at an early date, as soon as the road preliminaries are arranged. An area of 7,000 acres in the Glenroy Block has been placed in the hands of the surveyor. In addition to the above, some 10,000 acres at the head of the Karamea River will probably be placed for survey if adequate provision can be made for road access. Crown Tenants. There has been a fair increase in the number of Crown tenants, but as a goodly number also have exercised their right of purchase,, the net result is a total of 2,610, or some fifteen less than last year. A few tenants also were so hopelessly behind in improvement and residence conditions that it became necessary either to forfeit their holdings or to accept their surrenders with a view of securing better occupiers, and in most cases these were readily obtained. Inspections by Crown Lands Rangers. During the year the three Rangers in this district made 1,14-2 inspections of leases held by Crown tenants under the several tenures, besides 488 miscellaneous inspections and reports for the Land Board and Warden. The area inspected amounted to 350,000 acres; improvements required, £100,000; improvements effected, £264,000. Defaulters number 287—namely, ninetyseven behind in improvements, 119 in residence, and seventy-one for both improvements and residence. The amount of bush felled during the year was 14,755 acres, the burns being in most cases very satisfactory, Flax Industry. There are thirteen flax-mills whose united output is about 800 tons of dressed fibre. A small quantity of green flax is exported, but little development of this industry can bo expected. Most of the flax comes from freehold lands, and the remainder in small quantities from swamps and river frontages. The value of the output is about £15,000.

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