Napier Feb. 25/65. Sir, I am not an alarmist. I have always said that I saw no symptoms of a desire on the part of the Natives in this Province to proceed to extremities. But the Province is in a most critical state. It is a fact that a number of Waikato rebels of the Hau Hau fanaticism are located at the Hapuku's pa (said to have been invited by him, which I believe). The Aute people and the Hapuku's people have joined them, made them presents, and assisted them in every way; some of them are about to go to Ruataniwha to propagate their religion there, and no doubt they will be joined by the native of that district. Their advanced object is to kill the white men and all government natives and establish Maori supremacy in token of which it is said that the Hapuku has hoisted two flags - one that of "" and the other the flag. So that, by the aid of the King movement, Maui (that is the Maories) is to reign supreme in the island and old custom and habits are to be revived. It is reported amongst the natives that 500 more Waikatos all armed are coming to join those now here. Paora Toke is at the Hapuku's pa. Notwithstanding Maori exaggeration the fact still remain that a number of armed rebels, burning to revenge their shame and defeat, are located in the very midst of the Province, and others are coming, and their avowed object is to "kill". Flocks, and herds are grazing around them in abundance, and doubtless they will help themselves. The Province certainly is in a very critical state just now. On the 23 of Feb. inst. an ex defence forse man was coming from Waipukurau with two natives belonging to the Wairoa. They slept at the Hapuku's pa. The white man (Thomas Smith) was seized by two sentries with drawn swords of the Hau Hau mob, and marched into a house. His two Maori friends enquired what they meant by such conduct and they said (the two) that they were corporals but that if the man had been taken by they should certainly have cut his head off: On being remonstrated with by the white man's two Maori friends they answered, "It is our law." I believe Renata and Karaitiana and their party are going to hold meetings to consider what is to be done. They object to these people coming into the Rrovince of course. What their policy will be is clear. Of course they are suspicious of the Hapuku, and will not lend their aid to any movement which would increase his power and influence, because he is their enemy. Therefore, altho' theyaare Kingites and have no particular love to the whites, they are not to be feared so long as the Hapuku and his people are at the head of this confederation of rebels, of in any way connected with them. Besides they have too much property to lightly risk it. Doubtless they will remain neutral and leave the pakeha to fight battle against the Hapuku. I have no doubt they will bring all the moral influence they can to bear upon these strangers and will threaten them, but it is not certain they will take any active part on the side of the whites if hostilities commence. But it is impossible to say. They may do so as they are equally in dread of the whites increasing their power and influence in this Province as they are of the Hapuku gaining power - therefore I opine they would not like to see any great increase of the forces here. They wish to remain as they ever have been, and that is, independent of the pakeha, and not under subjection to British law and British rule. Paora of Mohaka is very anxious to get some arms. He has been to Mr. Cooper about it. I don't know what Mr, Cooper has done. Marana has written to Mr. Copper proposing that some steps should be taken - that we should "karikari", bestir ourselves. Major Douglass is away at Taupo just now. I send, you a note from Ihaka Uhanga. He is a kind old man. I have no more news to give you at present. Trusting that you are recovering from your illness and that we shall soon have the pleasure of seeing you back again and able to resume the duties of your office which requires a master hand under present circumstances. I beg leave most respectfully to sign myself Yours truly, James Grindell. P.S. Please excuse this very badly written letter. I am in haste being full of work.