3 Kennedy Bay Block.

This block was formerly surveyed at Government expense, and contains about 9,500 acres. No further outlay for surveys will be required, excepting the repayment to me of the sum of £25 expended on some alterations, and a plan which was made, by Mr. Gwynneth, licensed surveyor, in order to meet the requirements of "The Native Lands Act." This block contains sufficient available land for Native reserves; and there is a flat in addition of about 600 acres, formerly leased to Messrs. Cruickshank and Smart, but now abandoned by them, which is suitable for a town site and settlement. The remainder—say, 8,000 acres—is mining country of considerable value, and should, if possible, be acquired at once, as delay will increase the difficulty of purchase. The kauri timber on a portion of this block has been sold to Messrs. Cruickshank and Smart, who own a saw-mill there.