Hamilton, 11th. August 1869. Sir, I have the honour to inform you that Te Kooti and followers, also Rewi Manga and Te Heu Heu left Wharerata on Friday last, the 6th. inst., for Taupo via Tuhua; at which place he was heard of last. Tawhiao's last Proclamation - of which I have not yet received copy, but which I am informed, ordered all the natives to leave Te Kooti, retire to their homes, and to be peaceable, - appears to me to be significant, and coupled with other circumstances, lead me to be suspicious of the future intentions of the Waikatos. Their rejection of all overtures from Te Kooti, I am not surprised at. They looked upon him as an upstart, a man of no rank, and a midnight murderer; and in weakening and lessening his power, they have materially increased their own. This, combined with their peaceable overtures to all the tribes throughout the Island; to whom messengers from Tokangamutu have lately been sent; their desire that all fighting should now cease; their friendly proposals to the Kupapas in Waikato, and, I am informed, to the Arawas also; all this, without any apparent cause, when taken into consideration; and bearing in mind their steady pertinacity in looking upon the Waikato district still as their own, and only temporarily occupied by Europeans, - make me suspicious that the general peace they are so anxious for, may be compared to the calm that precedes the storm. I believe these to be now grave grounds to suspect the ultimate intentions of the Waikatos; and I would most respectfully suggest that for the next few months, some means should, if possible, be adopted to watch their movements. Farther, - I may state that the policy now being carried out is, so far as I can understand it, similar to their policy for the year or two previous to the war in the Waikato, (of 1863--4). A Policy of Reconciliation cum Combination. In most respectfully calling the attention of the Government to the above remarks, I may be allowed to state that I can most confidently appeal to the whole of my Official correspondence, that I have not been in any way what is known as an Alarmist; but I cannot but feel, on reviewing the conduct, the acts, and the policy of the Waikatos, at present, that they are at least very questionable. I have the honour to be, Sir, Your most obedient servant, (Signed) William Searancke. R.M. To:- The Hon: The Native Minister. Wellington.