Te Wairoa September 30th. 1868 Dear Sir, I returned last evening from Waikare-Tateke, whither I went ostensibly to lay out a disputed boundary. I had previously sent a letter to Te Waru, asking him to meet me to talk over the question of his land that has been virtually handed back to him, by Major Biggs' withdrawal of the Confiscation pro-clamation. I conceived that as he professed this to be the subject nearest his heart, that he would not fail to comply. Nevertheless, he did fail, sending me a message by Te Rua Horo, to the effect that he was sick, and his people busy planting; that he had moved to Whataroa; that he left the matter in my hands; and that what I said to Te Rua Horo, would be said to himself, etc., etc., I am now thoroughly convinced that he has other designs; in which belief, numerous circumstances tend to confirm me. Te Rua Horo chose to affect complete innocence of any knowledge whatever of the doings, position, and intentions of Te Kooti's party; telling Tamihana that Te Waru's people were much alarmed, and hoped the Government would assist them. After the old man departed, the conversation followed in the same grooves. As the night waned, and after they thought that I had fallen asleep, they kept up a whiepered conversation for hours; and I gathered sufficient to warrant my previously formed opinions. In about a fortnight since Raharui te Kara and Manahi passed through, via Putere and Whataroa, en route for Puketapu, stating that they went to advise the dispersal of Te Kooti's party. They were emissaries from Taupo, and gave a deal of information respecting affairs there. The story told by the scouts that Te Rakeroa and party had been taken prisoners by the Te Kooti, is manifestly untrue. Also Captain Saunders' report of having seen the palisading of the pa; to which his party did not approach within nine miles. They have defended Puketapu with earthworks, and have 50 men on guard constantly, whilst the rest plant, etc., Te Kooti purposes visiting Taupo and Waikato accompanied by a few followers. He has waited, hith-erto, the condition of his wounded, five in all. One man only was killed by Colonel Whitmore's party, who were attacked in the manner known, because the retreat commenced by the advanced guard of Europeans, showed that there was no longer any hope of drawing them further into the trap. Te Kooti himself and three women with him, were so close to the whites, that they had been noticed, in the confusion they could not have escaped capture. The loss that has most exasperated Te Kooti is the death of one of the wounded, Taka Taka, a leader upon whom the whole party placed much reliance. When they wept over his loss, Te Kooti said --- "Cease, for I will avenge him. When his spirit is thus appeased, you shall then weep for him." And much more of like import. Te Waru talks of the ties of blood, and the Maori race, much as he did before the Wairoa campaign. He has long prepared extensive plantations --- far more than is at all imagined. In conclusion, it appears that an intention exists to commence hostilities on the East Coast simultaneously with an attempt to be made by the Taupo tribes, to revenge the death of Te Rangihiroa. I heard this, and a great deal more, all of the same tendency. I have already advised you of what I consider the extremely unsatisfactory tone of the Friendly Natives; as, for instance, --- Te Kooti expressed the opinion that three pools of blood stood between him and reconciliation with the Government; that he had not been the oppressor, etc., Many of our people extend sympathy. The inferences I gather amount about to these:- That if the Hau Hau leaders can procure anything like combined action amongst their followers, they will make war on the Poverty Bay and Hawke's Bay districts, sometine during the next three months. That if they do, Te Waru will help them. You know that the arms he gave up were not one-third of what he possessed, and those the worst. That there is little reliable assistance to be had from Friendlies so long as our Government remains what it is. Some change must be made in native affairs, and that before long; even if the mischief has not been struck too deep already. ... I wrote a note for Hamana about lands at Wairoa, Natives from Napier have given bad council, and produced evil impressions. Nothing can be done till your return. I wished a safe conduct for Rewi te Eaha, merely as a pretext to send a native I can trust to bring a trustworthy account of Te Kooti's position. I am extremely busy with matters connected with Native Lands Court, but expect to get down to Napier by the end of next week. I should be better able to explain many things personally to you, than by a hasty letter. The Natives are generally strengthening their pas. I beg to remain Sir. Your obedient servant, (Signed) George W. Morgan. To:- His Honor, D. McLean Esq.,