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Great interest has been manifested in the work by the residents of the district, who have expressed confidence that the action taken will result in the establishment-of the flax industry in their district on a sound basis, which will be the means of employing a considerable amount of labour in a few years' time. I have, &c, R. P. Greville, The Hon. I). H. Guthrie, Minister of Lands. Kauri-gum Superintendent.

Statement of Accounts (as required by Section 5 of the Kauri-gum Industry Amendment Act, 1914) for the Year ended the 31st March, 1918. 1917. Receipts. 1018. Payments. April 1. £ s. d. March 81. £ s. d. .Balance .. .. .. .. 11,178 2 2 Wages and bonuses to workmen, overIt) 1 8. seers, and gum-buyers .. ~ 1,785 .'1 5 March 31. Machinery, plant, &o. .. .. 1,253 16 7 Sales of kauri gum .. .. 28,120 19 2 Final payments to gum-diggers and purchases of gum .. .. 10,585 18 0 Travelling-expenses of (Superintendent, staff, gum-buyers, and overseers .. 160 8 1 Office expenses, administration, &o. .. 1,676 9 4 Freights, &c. . . .. .. 3,081 17 4 Balance: Cash in Publio Account .. 20,755 8 7 £39,299 1 4 £39,299 1 4 R. P. Greville, Examined and found correct. Kauri-gum Superintendent. Robert J. Collins, Controller and Auditor-General. Loan Account. 1918. £ s. d. 1918. £ s. d. March 31 To Balance .. .. 47,000 0 0 Maroh 31. By Debentures issuedjunder the k>j is. i Kauri-gum Industry Amendfej ~.„.',',,. ment Aot, 1914 .. .. 47,000 0 0 £47,000 0 0 £47,000 0 0 R. P. Greville, Examined and found correct. Kauri-gum Superintendent. Robert J. Collins. Controller and Auditor-General.

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