For His Excellency's information. D. McLean. Waiuku, 9 March, /61. My dear Sir, All is quiet here and at the Mauku. The settlers do not at present entertain any feelings of uneasiness although they think the war will eventually reach them. During my absence some Ngatihauas have been here with a large quantity of new wheat which realized about £500 a sum they received in hard cash. Five more canoe loads are now in the Awaroa, and I hear thrashing is being carried on with great activity up the country. In one day a party of Ngatihauas spent £166 in blankets, calicoes, shawls (, they won't have red lest they should be as easily distinguished as the soldiers) and tobacco, preparatory to going back to Taranaki. They conducted themselves well enough, but an absence of cordiality shows the feeling that is springing up amongst them, a feeling of estrangement which if unchecked will sooner or later increase our troubles immensely. It is positively stated by natives that Wiremu Tamihane has gone to Taranaki at last to lay down rules for the future conduct of the war; that accomplished he intends to return. Tioriori is also said to have accompanied him, if true, and there appears no reason to doubt the information, we may with reason expect to hear of Lower Waikato following. Some of the Ngatiteata's are itching to go, and only wait for old Katipa to die, to give effect to their wishes. Tikapa, of Ngatitahinga, will be off when his crops are gathered, and it appears the insurgents expect to carry everything before them during the present season. I hear parties are off from Taupo, Ngatikahuhunu, and Tarawera, some to join the Waikatos at Huirangi, others to join Ngatiruanui at Waireka - their idea is - impressed upon them by whom it is hard to say - that the Governor is fighting for N.Zealand and so soon as the natives at Taranaki are subdued or killed, he will commence hostilities in some other locality, and in that manner destroy them as a people. I hear Wiremu Kumeti (reported killed) is at Paetai, endeavouring to persuade the natives there to join in the war. Waata Kukutai who is here, leaves for Auckland tomorrow in the ''Betsy''. As you sanctioned, I have requested the agent to send his account in to you - there are 10 with Waata, and I did not like to reduce the number. The charge is 2/6 for each native. You will be surprised to hear that a kit of bullets, and several guns (said to be 6) were taken up the river by natives who were with Tamati Ngapara, and Ahipene when on their way to Ngaruawahia. The reason assigned for Ngapara's long stay is the expected arrival here of Heuheu to discuss the affairs of the Nation. Several Ngatihauas are now in the village making the usual purchases. Faithfully yours, H. Halse.