Napier 19th. August 1865 Sir, I have the honour to acquaint you that on the 2nd instant, a very spirited engagement against the Hau Haus took plate at Waiapu near the East Cape. The small foree of Hawke's Bay Military settlere and Volunteers commanded by Captain Fraser, and the Friendly Natives by the Chief te Mokena, attacked and captured, Pa Kai roi roi, killing twenty-five the enemy. The casualities on our side were seven wounded. The position of this Pa situated about a mile and a half inland of Morgan's, and the country which it commanded, pointed it out as the first of the enemy's strong-holds that should be attacked. The greater portion of Morgan's cultivations were in its immediate vieinity; and most of his cattle and sheep were there also. Some high table-land to the rear of the Pa, commanded a full view of all Morgan's positions. This hil is known as Sentry Hill, - from numbers of the enemy being always posted there. It was found necessary to expel the enemy from this position before any other operation could be attempted. After a few days' sharp skirmishing between the Friendly Natives, and the Hau Haus, and a sucecssful reconoitre on the Pa Kai romi romi by Lieut. Biggs, a plan of attack was ably designed by Captain Fraser, and se well followed up in all its details by the and Officers and men under his command, that the Pa was captured, and twenty-two of the enemy killed within it, without any loss on the part of the attacking force beyend the seven wounded previously referred to. The Europeans engaged were thirty Military settlers under Captain Fraser, and thirty Volunteers under Lieut. Biggs. The Native Force, under the Chief Morgan, was stationed on Sentry Hill, and kept up a well-directed fire against the enemy; while Captain Fraser was advancing to the assault. Before the Pa was entered, the Maoris defiantly invited Captain Fraser's force to attack. A preconcerted signal was made to Lieut. Biggs; who help a position on the West side of the Pa; and it was soon entered by the attacking force, led by Captain Fraser, who narrowly escaped a tomahawk blow aimed at him, but which was instantly perceived by one of his mem, who killed the Maori. I am informed that the whole affair, from the firing of the first gun, till the Pa was captured, did not last more than half an hour. Detailed particulars of the engagement, and plan of attack, if forwarded by Captain Fraser to the Henble, the Minister of Colonial Defence. I feel sure that the Government must fully appreciate the skill, galantry, and bravery exhibited on this occasion, as reflecting the highest credit upon all who were engaged; and I feel satisfied that such a dashing achievement will have a most important influence, not only on the East Coast tribes generally, but also on the measures contemplated by the Gevernment at Opotici. A very impertant Chief, named Porourangi was during killed during the engagement. The Chief is represented as having been most hostile to the Europeans, since their first settlement in the Colony. Elated with the success attending the engagement of the 2nd. inst., the Chief Morgan started with forty followers on an Expedition to the enemy's country, lying between Waiapu and Hick's Bay. The enemy were driven from all their pas on the coast; five of them killed; some taken prisoners; and a very strong inland Pa described as accessible only by one narrow pathway, taken possession of and destroyed. This Pa contained some booty, to which Morgan and his people attach great value. Two of the prisoners taken on the 2nd. inst. will be sent to Wellington. I enclose for your information the copy of Mr. Deighton's report, which gives a move fall detail of proceedings. I take this opportunity of expressing the hope that the valuable services rendered by that Officer will not be overlooked by the Government. The cheerful manner in which all parties volunteered to serve at the East Cape, a part of the country unknown to all the Officers, and men who enrolled for service in this Province, is deserving of notice. The only information they possessed at the time of going to Waiapu, was that the enemy mustered is such force that Morgan's party must be defeated, if immediate aid were not sent. I enclose the translation of a most interesting letter from the Revd. Mohi Turei, containing a reliable account of proceedings at the East Cape. I will address a separate letter, recommending for the consideration of the Government, some special notice of the forces, both Europeans and Native, that have been engaged at the East Cape. I have the honour to be Sir. Your most obedient servant (Signed) Donald McLean. To:- The Honble. The Colonial Secretary Wellington.