this concession will be granted to. the Legis lature of New Zealand, which has constantly advocated its justice and expediency ; and I express the hope that such care will be exer cised in making a proper and reasonable use of ifc as will prove that it has been wisely Bought and granted. Arising out of the; Conference, though not directly associated with it, are proposals for the establishment of cable communication between Australia and ISfew Zealand, and Normanton and Sin gapore, in joint connection with other Colo nies. Your early attention will be invited to these proposals, which await, and are subject to, your concurrence. I regret that whilst so many other subjects received satisfactory consideration and decision at the hands of the Conference, upon the subject of mail services an unanimous conclusion was not arrived at, and in conse quence it still awaits a final arrangement. My advisers have given much consideration to the matter, 'Whilst they are anxious to re-open the Californian service, they are only dis posed to do so on terms which will do justice to the requirements of the Colony, and which willnot disassociate New Zealand from the use of the Suez service. Negotiations are still pending, but in all which have been entered into, the approval of Parliament has been made an absolute condition. The work of making roads in Native districts in the North Island, and thus through their aid of opening up the country for future settlement, has been prosecuted during the year with steadiness and success. It is gratifying to observe that the opposition originally manifested at several points to this undertaking is gradually les sening, as the Natives more fully understand the intentions of the Government, and the benefit accruing to themselves from these works, in affording employment through out several districts, and in giving in creased value to tribal lands. It is also gratifyingtoobservethattheNatives generally appreciate the advantages of peace, and are directing their attention to industrial pur suits, and to the establishment of schools in which their children can obtain the advan tages of an English education. 