On 4th September, 1885, the Hydraulic Engineer replied in unequivocal terms to a minute of his Minister requesting him to comply with the wish expressed that he should purchase a Victorian diamond drill, then under offer, for coal-prospecting purposes. Mr. Henderson strongly recommended that no drill be purchased unless capable of boring holes at least from 5 in. to 2 in. in diameter. He also pointed out that where drifts and loose gravels were met with, and tubed, a deep bore must be commenced of large diameter to ensure success. Although the proposed drills were not ostensibly to be used for water-finding, it is evident that the Hydraulic Engineer, in reporting upon them, had that kind of work in view. GOVERNMENT URGED TO IMPORT PLANT AND MEN. On 2nd December following the Hydraulic Engineer addressed the Minister touching water-boring operations, and pointed out that, while there would be no difficulty in importing the machinery and appliances requisite for deep bores, he was convinced that men must be introduced from America to start and teach others here to work them. He recommended that an efficient plant should be ordered capable of boring up to 12 in. in diameter to a depth of 2,500 ft., for (say) L1,000, delivery at the works, and four good drillers under a two years' engagement brought out to work them at 21s. to 23s. per day, apparently of twelve hours; board, lodging, and travelling expenses to be defrayed by the Government. OBSTACLES FROM DROUGHT. On 20th February, 1886, the Hydraulic Engineer wrote that, understanding from conversations with the Minister that "the policy of the Government is to carry on water conservation works and boring for underground water with increased energy, he recommends the purchase of three Wright and Edwards' boring machines, capable of reaching a depth of 1,000 ft., for delivery within four months from the date of order." Three days later Mr. Henderson wrote:--"Unfortunately it can be said with much truth that, ever since the department's existence, the seasons have been unfavourable in the extreme for carrying out its plans." After mentioning the specific difficulties encountered, he added:--"I do not share in the idea that the late rains broke up the drought, as I cannot disguise from myself the fact that they have not been general, or even yet of sufficient quantity." FIRST BORING STARTED AT BLACKALL.