When the Ministry took Office in June 1869. the Native state of things was:- Rebels under Titokowaru were ready for fresh acts of hostility. Communication was impeded. None of the leading Chiefs had surrendered. Ngatimaniapoto were in a very unsettled state. Urewera and the disaffected natives with them were in arms. Te Kooti, with a large party, had entered this, and fears were entertained of an alliance between the two. Part was employed uselessly at Waikaremoana. A great portion was locked up in the Kaingaroa plains. The total number was 2915 at a monthly cost of, in round numbers, £40,000. :- 1. At once to withdraw the forces from their unprofitable position. 2. To reduce them in number. 3. To support the Friendly Natives in the Interior and move at once to Taupo. 4. To make more extended use of Friendly Natives. In consequence to these plans, when Te Kooti emerged from Waikato, he found himself confronted by a mixed force, in which were to be found Chiefs who formerly were staunch Kingites. Defeated and beaten out of Taupo, he was again baffled about Tauranga; and shorn of his following, driven into the Urewera. Here Native allies again took up the chase. It was found by experience that dearth of European food was an obstacle in the way of European troops, in such a sterile country, but that natives accustomed to potatoes, etc. could live on it. The Ngatiporou, aided by the Wanganuis, invaded the Urewera; and after innumerable hardships, effected the complete reduction of that savage tribe; and brought in also numbers of others, who had never surrendered since the outbreak of war on the East Coast. Ngatiporou subsequently undertook expeditions through the wild region at the back of the East Coast in search of Te Kooti, now known to have but few followers. In this they were aided by Armed Constabulary, no longer in large forces, but in small parties, securing the country, exploring unknown glens, and driving the rebel Chief from every place of refuge. In this also were useful two small native Corps of Arawa, officered by Europeans. The latter were on pay, while Ngatiporou were promised a lump sum in the event of success. was then remodelled on a different system, and, where not engaged in the field, were utilised on Public Works. During the panic which occurred in Waikato on the occasion of Mr. Todd's murder, it was thought proper to reinforce that district; and the men there, having no fighting to do, have been most usefully employed in making roads and bridges. Part of the road from Napier to Taupo has also been constructed by their labour, and of the Armed Constabulary, as have also, roads in New Plymouth and in the Bay of Plenty. In various places they have built excellent stockades, with huts, magazines, and all necessary appliances. It may be said that they have not a single idle moment; as in out districts, in addition to their daily routine, they have to act as constables, as enumerators, telegraph care-takers, boatmen, carpenters, smiths and ploughmen. Several of the Officers have also been employed on engineering, and survey duties. Before speaking disparagingly of the Armed Constabulary, any one should travel through the country, and see them at work, and what they have done. :- 162 Constabulary of all ranks there. All alarm ceased on part of settlers. . 82 Armed Constabulary North of New Plymouth. 89 Armed Constabulary South of New Plymouth. Signs of disaffection daily decreasing. 152 Armed Constabulary here. N.B. 46 act as Police in Auckland; and there are 70 at the Depot. 126 Armed Constabulary here, distributed in various parts. Total 727 of all ranks. Making a link between Taupo and Bay of Plenty; and not a hostile native Eastward of Waikato river. The subject of the defence of the country has been the subject of discussion by Committees. The cessation of alarm has acted upon the Militia, and this branch has become unpopular. In towns it is difficult to have a Militia; and in country districts the settlers are so scattered that only small numbers can be got together for purposes of drill. The third class has been released from training, and the first and second parade only once a quarter, for which they receive pay. These have increased slightly in numbers. One noticeable feature is the increase of Cadet Corps. The Government have put themselves in communication with the Imperial suthorities, in order to obtain from them information as to the most efficient means which are at our disposal, and within our compass. Steps have been taken to introduce by degrees the Snider breech-loader.