That a basin may be found to the northward receiving the waters of the northern part of the coast range in a similar manner is extremely probable, and that they form a better river, because the angle is more acute between the high ground, which must bound it on the N.E. and the watershed on the south.  I therefore prepared to cross the Karaula, in hopes of seeing the head at least of such a river, and to explore the country two degrees further northward, but moving in a N.W. direction.  My tent was struck, and I had just launched my portable boat for the purpose of crossing the river, when Mr. Surveyor Finch, whom I had instructed to bring up a supply of flour, arrived with the distressing intelligence, that two of his men had been killed by the natives, who had taken the flour, and were in possession of everything he had brought—­all the cattle, including his horse, being also dispersed or lost.  I therefore determined not to extend my excursion further, as the party were already on reduced rations, and on the 8th instant I retired from the Karaula, returning by the marked line, which being cut through thick scrubs in various places, is now open, forming a tolerably direct line of communication in a N.W. direction from Sydney, to a river, beyond which the survey may be extended whenever His Excellency the Governor thinks fit.

The natives had never troubled my party on our advance; indeed I only saw them when I came upon them by surprise, and then they always ran off.  Their first visit was received at my camp on the Karaula, during my absence down that river, when they were very friendly, but much disposed to steal.  Various tribes followed us on coming back, but never with any show of hostility, although moving in tribes of a hundred or more parallel to our marked line, or in our rear; it was necessary to be ever on our guard, and to encamp in strong positions only, arranging the drays for defence during the night:  three men were always under arms, and I have much pleasure in stating, that throughout the whole excursion, and under circumstances of hardship and privation, the conduct of the men was very good.  I took an armed party to the scene of pillage, and buried the bodies of the two men, who appeared to have been treacherously murdered while asleep by the blacks during the absence of Mr. Finch:  no natives were to be found when I visited the spot, although it appeared from columns of smoke on hills which overlooked if, that they were watching our movements.

The party has now arrived within a day’s journey of Brown’s station, and I have instructed Assistant-Surveyor White (from whom I have received great assistance during the whole journey) to conduct it homewards, being desirous to proceed without delay to Sydney, and to receive the instructions of His Excellency the Governor.

I have the honour to be, Sir,
Your most obedient Servant,
T. L. Mitchell,
Surveyor-general.