Enclosure in No. 1.

Captain J. Lort Stokes, R.N., to His Excellency the Lieutenant-Governor.

Sir,—

In compliance with your Excellency's request, I have the honor to forward a brief description of the southern portion of this Province, resulting from the "Acheron's" recent cruise.

In our examination of the seaboard from Otago to Preservation Harbour, a distance of 220 miles, there were found only four roadsteads and one port; and of the twenty-three rivers on this extent of coast line, four only are available for small vessels, and only two, the Waikawa and Oreti, or New River, for ships of 300 to 400 tons. The latter is of very considerable importance, since it leads to the fertile district hereinafter described, and is separated by merely a half-mile portage from the head waters of the Bluff Harbour, the last in the Middle Island, having an available block of land within the eastern entrance of Foveaux Strait, and distant 130 miles from Otago.

Our first view of this prairie land of the Middle Island was from the Bluff, a basaltic hill of 855 feet of elevation. Between the points of N.E. and N.W. appeared a large plain, of which the outline suggested the idea of a Bishop's mitre, and measuring, as was subsequently ascertained, full a hundred miles. Isolated patches of woodland were agreeably dotted over its surface, and a range of rugged snow clad mountains; the highest, distance eighty miles, being 6,700 feet, to which I gave your Excellency's name, terminated in that direction the prospect of this extensive landscape. Turning in an opposite direction, the eye rested on Foveaux Strait, then nearing the aspect of a tranquil arm of the sea, some fifteen miles in width, with Stewart's Island for its southern boundary, and numerous groups of islets occupying the space between shore and shore.

Three large openings in the northern hills show the course of the Aparima or Jacob's River, winding along the western edge of the plain, that of the "New River" traversing its central part, with the "Mataura." running on its eastern side.

The "New River" was ascended in a whale-boat for nearly thirty miles in a N.½ E. general direction. In that distance the land rose gradually 200 feet by three steppes, each change of elevation being attended by corresponding and somewhat dangerous rapids. The depth of water varies from 2 to 8 feet, the width from 50 to 500 yards; the soil on either bank consists of a rich mould, and appeared clothed with trees, or verdant pasture, as the stream wound through clumps of trees, or swept across the open plain. The Mataura and Jacob's River were partially examined by Mr. Hamilton and Mr. Spencer, of the "Acheron," whilst she was occupied on the shores of Stewart's Island. They explored the intermediate country and reached Otago in sixteen days, each carrying 30 lbs. weight of baggage, which from unexpected accidents was frequently increased to 70 lbs., being the first Europeans who had accomplished the journey.

I extract the following passage from Mr. Hamilton's report:—"The country eastward of the Molyneux or Clutha, as far as Jacob's River, offers peculiar advantages for the formation of an extensive settlement. The plain, stretching eastward of the latter stream for a distance of forty miles, comprises at least 600,000 acres of rich soil clothed with fine grass. The timber is everywhere very equally distributed, and the district, taken altogether, seems to vie in natural advantages with the best parts of the Middle Island."

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Eastward again of this plain a chain of densely-wooded hills extend as far as Molyneux District, having towards the sea an elevation of about 2,000 feet. Inland, however, they gradually decreased in height, and the masses of forest disappear altogether, giving place to the finest pasturage. This tract, broadest towards the south, where it meets the sea coast, has an area of from 700,000 to 800,000 acres of fertile land. The disappearance of the timber and consequent scarcity of fuel will prevent its subdivision into many small stations or sheep runs. There are indeed some indications of peat or turf in this neighbourhood which might be available as a substitute, since some patches were seen in a valley little more than halfway between Tuturau and the Mataura River. At Tuturau the soil has proved extremely rich, and potatoes raised by a solitary Maori family resident there exceed in volume those brought by Bishop Selwyn from the Chatham Islands, which were considered as the most remarkable specimens of this sort grown in the Southern hemisphere.

Speaking generally, the climate is very equal, although rather wet towards the sea coast, but less so in the interior, as is shown in a remarkable difference in the vegetation of those respective situations, and by Mr. Hamilton's experience of only sixteen rainy days out of forty-six; whilst in the ship, out of seventy-seven days, thirty-five were wet.

Snow rarely lies on the low lands, though we saw very thin ice occasionally between 15th March and 1st June. During this interval the temperature ranged from 40° to 60°, but on one or two occasions as low as 32°, and the wind veered from N.W. to S.W.

The proximity of this extent of fertile land to the Otago Block, with which in fact, it is almost connected, suggests the propriety of closing with the Natives in their present disposition to sell all that remains to them of the Middle Island.

Many parties visited the "Acheron," under the impression and hope that this purchase formed part of our mission; but of course I could only promise that their wishes should be promptly communicated to your Excellency. Previous to our departure, after making out on the charts the reserves they were desirous of retaining, the Maoris, both in Foveaux Strait and at Otago, expressed their desire to sell all the land from Otago to the Western Coast. £2,000 would probably be accepted as purchase money, one-half of which I would suggest should be distributed at Otago, and the remainder at the Bluff, an arrangement securing their fair proportion to all parties entitled to it.

Stewart's Island has an altitude of 3,200 feet. Its coast line is strangely distorted in the charts now in use—the south end excepted, which having been visited by the great navigator "Cook," is laid down with his accustomed accuracy. The eastern and northern sides have several good harbours. Of these Patterson's Inlet deserves particular notice, being nowhere surpassed in New Zealand. It has many convenient heaving-down coves, and is generally surrounded by fine timber, such as rimu, rata, black pine, totara, &c. This inlet seems very eligible for a small permanent settlement. On a narrow tongue of land forming its eastern shore are congregated twelve out of the one hundred and seven European inhabitants of Foveaux Strait; they have a few cattle. The other white men live scattered over the north and south shores. Some have passed two-and-twenty years in this solitude, and with few exceptions are married to Maori women, and their daughters are the wives of Europeans also. Their small clearings on Stewart's Island exhibit a fertile though shallow soil.

Of the Maori population, amounting to 280 individuals, now reside at Ruapuke Island, of the whole of which they seem disposed to keep possession, although portions have been purchased and paid for by Europeans.

A few plants common to the Auckland Isles were also found in Foveaux Strait, and one bird, a snipe, excited our curiosity as being the first of this species seen in New Zealand. Respecting some beaver said to live in these great lakes, whence the principal south-eastern rivers take their rise, no information could be gathered even from the oldest Native, so that their existence is probably a fable. A large lizard said to exist there seemed to inspire feelings of apprehension and awe.

Indications of coal were observed on only one spot high up the Mataura, but of inferior quality. Lignite exists in the New River, where I before omitted to observe about 200 head of cattle are depastured, showing prime condition from the excellent feed.

The navigation of Foveaux Strait being now rendered secure, and a great obstacle to the settlement of its shore being thus removed, I shall conclude my letter with the hope that a spot so eligible as Awarua or the Bluff will not long remain unoccupied. Many of the peculiar advantages possessed by this site I have already detailed; one more may be adduced, well calculated to bespeak the preference of my countrymen, namely, that it is fully a fortnight nearer England than any portion of New Zealand now under colonization.