DESPATCHES BETWEEN THE GOVERNOR OF NEW ZEALAND AND THE RIGHT HON. THE SECRETARY OF STATE FOR THE COLONIES.

Appendix to the Journals of the House of Representatives, 1866 Session I, A-01

1

DESPATCHES BETWEEN THE GOVERNOR OF NEW ZEALAND AND THE RIGHT HON. THE SECRETARY OF STATE FOR THE COLONIES.

(In continuation of Papers presented 24th October, 1565.)

I'BESENTF.D TO BOTH HOUSES OF THE GENERAL ASSEMBLY, BY COMMAND OF HIS EXCELLENCY.

WELLINGTON.

18C6.

SCHEDULE OF DESPATCHES

FROM THE GOVERNOR OF NEW ZEALAND TO THE SECRETARY OF STATE.

Number IN Series. Date and Number. Subject. Pag . 1 22nd September, 1865 (No. 120.) Bringing under the notice of Her Majesty's Government the efficient services rendered by Captain Hope of H.M.S. "Brisk" during tbe recent expedition to Ojiotiki With reference to a quotation from a letter from Sir George Grey to Sir D. Cameron—" That the Colony should rely on its own resources, energy, and courage" Transmitting copy of Peace Proclamation, issued on 22nd September, 1865 Eeporting the resignation of Mr. Weld and his colleagues 2 4th October, 1865 (No. 121.) 3 3 14th October, 1865 (No. 125.) 14th October, 1865 (No. 126.) 14th October, 1S65 (No. 127.) 10th November, 1865 (No. 136.) 10th November, 1865 (No. 140.) 3 4 l 5 5 6 7 8 9 10 11 12 13 14th November, 1S65 (No. 147.) 14th November, 1865 (No. 150.) 5th December, 1865 (No. 153.) 9th December, 1865 (No. 155.) 11th December, 1865 (No. 156.) 12th December, 1865 (No. 157.) 12th December, 1865 (No. 158.) Eeporting the murder of a Native named Kereti, and the supposed murder of Mr. C. Broughton ... Transmitting Eesolution of House of Eepresentatives as to removal of the Troops in May, 1865 Enclosing copy of Eesolution of Legislative Council as to the removal of the Troops, and memorandum of Ministers thereon Enclosing correspondence with Major-General Chute relative to the return of five Eegiments to England Transmitting Memorandum by Ministers relative to preliminary arrangement with the " Panama, New Zealand, and Australian Eoyal Mail Company" Transmitting copy of a letter from Mr. Civil Commissioner Smith, reporting the arrest of seventeen Natives implicated in tho murder of Mr. Eulloon Eeplying to Mr. Cardwell's Despatch No. 7S, 25th Sept., 1865, and to the letter from the War Department of 20th Sept., stating, that in Lord de Grey's opinion, General Cameron had not assumed, in his Despatches to that department, any latitude inconsistent with his high position Eeplying to Despatch No. 50, of 26th July, and the charge that Sir George Grey had made an unfair and improper use of a private letter from Sir D. Caineron AVaitotara Block —reporting on this subject in reply to Despatch No. 76, 22nd Sept., 1865 Waitotara Block —calling attention to the publication in English and Colonial newspapers of charges made against the Governor by distinguished officers at Head Quarters Contradicting statements made in a letter published in the English newspapers by a distinguished officer at Head Quarters Transmitting Map with au endorsement by General Cameron, showing that the measures of Confiscation censured by Mr. Cardwell, were as much his as Sir George Grey's Enclosing letter, showing that the present intentions of the Pai Marire's in Waikato are peaceable ... Pointing out the advantage, both to the Colony and Great Britain, of advances from the Treasury chest ... Answering charges made against the Governor by General Cameron, relative to the capture of the Weraroa Pa ... Expressing regret at being forced into a further correspondence relative to Sir D. Cameron... Giving opinions in favour of the Northern Island haying a separate form of Government during the existing disturbances Enclosing claim for losses sustained by the Colony from the P. and O. Company's steamers not arriving in Australia on their due dates ... ID 12 13 5 6 6 s !) !) 14 15 19 14th December, 1865 (No. 161.) 21 16 14th December, 1865 (No. 162.) 17 30th December, 1865 (No. 165.) 1st January, 1866 (No. 1.) 1st .lanuarv, 1866 (No. 2.) 2nd January, 1866 (No. 3.) 4th January, 1866 (No. 4.) • >•> 18 23 I!) 21 20 25 •Jl 11 11 22 8th Januarv, 1S66 (No. 5.) 42

SCHEDULE.

XUMBER IN Date and _\umber. Subject. Page. Series. 23 21 25 24a. 25a. 26 27 28 8th January, 1866 (No. 6.) 8th January, 1S66 (No. 7.) 9th January, 1S66 (No. 8.) 12th January, 1866 (No. 9.) 13th January, 1866 (No. 10.) 13th January, 1S66 (No. 11.) 13th January, 1S66 (No. 13.) 13th January, 1866 (No. 14.) Transmitting Memorandum by Ministers, with reference to appropriations made by the Colony on account of Imperial Eorces, and advances from the Treasury chest ... Transmitting Petition from the Auckland Provincial Council, praying that the Northern portion of these Islands may be constituted a separate Colony .. Transmitting Memorandum by Ministers on the Acts of the General Assembly of New Zealand, Session 1865 With reference to the Debt due by the Colony to the Imperial Government; and pointing out errors in the statement of the senior Commissariat Officer ... Transmitting Ecport from Major-General Chute of the defeat of the Eebcls on the 1th and 7th insts., on the West Coast of this Island [Transmitting Memorandum by Ministers, relative to the disposal of £500,000 of Debentures sent home to liquidate the debt due to the Imperial Government Transmitting Memorandum by Ministers in relation to the sum of £5 6s. 10d. due to the Bank of England for interest Transmitting copy of report from Major Eraser, containing details of an action between Her Majesty's Colonial Eorces and the Hau Haus on the Wairoa Eiver Transmitting Memorandum by the late Ministry in reference to the Waitotara Block Transmitting reports from Mr. Booth relative to the state if the Taupo Natives Transmitting letter from Sir AV. Martin, on the subject of our connection with the Natives generally, and the best mode of working the Native Lands Act... Enclosing Memorandum by Ministers relative to the disposal of persons implicated in the murder of Mr. Fulloon Transmitting reports from Major-General Chute of operations carried on by him on the AVest Coast of this Island, till their close on the 9th instant Transmitting letter from Chiefs of Taupo and Eotorua praying the Governor to visit them, and stating that it is his intention shortly to comply with their request ... Eeporting visit to Napier, Wairoa, Turanga, AVaiapu, and Opotiki Eeporting visit to Maketu 43 51 52 57 57 60 60 61 29 13th January, 1866 (No. 15.) 20th January, 1S66 (No. 19.) 2nd Februarv, 1S66 (No. 20") 62 30 63 31 65 32 13th Eebruarv, 1866 (No. 230 13th February, 1S66 (No. 24.) 85 33 86 31 21st February, 1866 (No. 25.) 92 35 23rd March, 1866 (No. 31.) 2Sth March, 1866 (No. 33.) 29th March, 1S66 (No. 34.) 12th April, 1866 (No. 35.) 93 93 36 37 38 Eeporting complete submission of Te Heu Heu aud Herekcikei ... ... ... ■ •• ••• Transmitting Memorandum by Ministers complaining .of failure on the part of tho P. and O. Company's steamers to arrive in Australia on their due dates Eeporting interview with William Thompson at Hamilton 93 9191 39 3rd May, 1866 (No. 36.) 6th May, 1866 (No. 39.) Sth May, 1866 (No. 41.) 40 Eeporting on the mail services at present existing between Australia and New Zealand Enclosing copy of a letter from Dr. Eeathcrston in reply to the charge's advanced by General Cameron on the subject of the Waitotara purchase ... ... ... ... Transmitting Memorandum by Ministers, and accompanying Statement, showing amounts paid from the Colonial Treasury on account of Imperial Troops and services ... Transmitting Memorandum by Ministers relative to the Claims made by the Imperial Government against the Colony of New Zealand on account of military expenditure ... ... ... ■- - ■ • • ■ ■ Transmitting copies of correspondence with Eesponsible Advisers on the subject of tbe rations still issued by the Commissariat to the Local Eorces Transmitting Memorandum by Ministers with respect to tbe charges for " roads for military purposes," referred to in Statement accompanying Minister's Memorandum of 10th April, enclosed in Despatch No. 42 96 41 97 42 12th Mav, 1866 (No". 42.) 13 101 12th May, 1866 (No. 43.) 103 -ft 11th May, 1866 (No. 44.) 45 103 14th May, 1866 (No. 45.) 105

SCHEDULE.

NUKBEB IN Series. I)\ii: ,\nj> Number. Subject. Pace. n; 47 28th May, ls(i<; (No. 49.) 29th Mav. 186(5 (No. 53.) Transmitting petition from the Superintendent of the Province of Auckland, praying that the Northern portion of the Colony of New Zealand maj lie speedily erected into a separate and independent Colony ; together with Memorandum of Ministers 1 hereon Conveying the opinion of Ministers thai in t he present state of the finances of New Zealand the Legislature would not he disposed to entertain any proposal for granting a Colonial allowance to officers of Ber Majesty's vessels serving on the coast of \ew Zealand ... ... ... Transmitting Memorandum by Ministers relative to the subject of the mail services between Australia and New Zealand 106 18 14th June, 1866 (No. 57. i 106 107

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A.—No. 1.

DESPATCHES FROM THE GOVERNOR OF NEW ZEALAND TO THE SECRETARY OF STATE.

No. 1. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 120.) Government House, Wellington, Sir, — 23rd September, 1865. I have the honor to state that it being necessary to attempt to apprehend and punish the murderers of the Rev. Mr. Volkner, an expedition was fitted out for the purpose, and despatched to Opotiki, the scene of the murder. 2. This expedition was accompanied by Capt. Hope, of H.M.s s.s. " Brisk," who rendered very essential services on this occasion. My Responsible Advisers, in the Memorandum a copy of which is enclosed, requested me to convey to Captain Hope the thanks of the Government of New Zealand for the important services which he, together with the officers and men of H.M.s s.s. " Brisk," had rendered; and as I feel very much indebted to Captain Hope for his efficient assistance, I should feel very much obliged to you if you would bring under the notice of the Lords Commissioners of the Admiralty the services of Captain Hope, and of the officers and men of H.M.s s.s. " Brisk," on this occasion. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Mr. Weld, 20th September, 1865.

Enclosure in No. 1. Copy of a Me_iora>-dtjh by Mr. Weld. Ministers respectfully request His Excellency the Governor to express to Captain Hope, E.Ncommanding H.M.s s.s. " Brisk," the thanks of the Government of New Zealand for the very important services which that officer, and the officers and men under his command, have rendered to the Colony on the occasion of the recent expedition of Colonial Troops to Opotiki. Those services have greatly contributed to the success which has hitherto attended that expedition, and they are the more valuable inasmuch as they evince a spirit of cordial co-operation with the Colonial authorities in active efforts to suppress the present Native disturbances. Wellington, 20th September, 1865. F. A. Weld.

No. 2. Copt of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 121.) Government House, Wellington, Sir,— 4th October, 1865. In your Despatch No. 50, of the 26th of July last, in reference to the Despatches of General Cameron to the Secretary for W xar of May last, you state that General Cameron had informed the Secretary of State for War that it was his opinion " that nothing was more to be desired than that the Colony should rely on its own resources, energy, and courage." I beg respectfully to be permitted to point out that the fact is not as apparently stated by General Cameron to the Secretary of State for War, but as follows :—" I was the person who expressed the opinion, quoted by General Cameron, in the following words in a letter to that officer of the Ist May, 1865 : —■' lam aware that they' (the Colonial Ministers) ' participate with me in an earnest wish that the Colony should for the future, in as far as possible, carry on active operations from its own resources, as we believe that if it can only have such operations carried on by being at the same time subjected to such imputations as those contained in some of your recent letters, it would be for many reasons better that it should attempt to extricate itself from its difficulties by relying on its own resources, energy, and courage.' " 2. It will also be found from the enclosed copy of a Memorandum to my Responsible Ministers, of the 7th of April last, that I on that date used the same words to them. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY. l

V. A. No. 1, Seas, papers, 1865. No. 11, p. 10.

A.—No. 1

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DESPATCHES FROM THE GOVERNOR OF NEW

No. 3. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 125.) Government House, Wellington, Sir,— 14th October, 1865. I have the honor to transmit for your information the copy of a Proclamation I have issued, with the advice of my Responsible Advisers, announcing to the Natives of New Zealand the desire of the Government to regard the war in New Zealand as ended, and calling upon all Chiefs and Tribes to aid me in putting a stop to all acts of violence for the future. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Sept. 2, 1865.

Enclosure in No. 3. Peoclamation op Peace. By His Excellency Sir Geoege Geet, Knight Commander of the Most Honorable Order of the Bath, Governor and Commander-in-Chief in and over Her Majesty's Colony of New Zealand, and Vice-Admiral of the same, &c, &c, &c. The Governor announces to the Natives of New Zealand that the War which commenced at Oakura is at an end : The Governor took up arms to protect the European settlements from destruction, and to punish those who refused to settle by peaceful means the difficulties which had arisen, but resorted to violence and plunged the country into war. Upon those Tribes sufficient punishment has been inflicted. Their war parties have been beaten ; their strongholds captured ; and so much of their lands confiscated as was thought necessary to deter them from again appealing to arms. The Governor has therefore shewn that he will not permit the peace of the Colony to be disturbed without inflicting severe chastisement on those who resist his authority. The Governor hopes that the Natives will now have seen that resistance to the law is hopeless : he proclaims on behalf of the Queen, that all who up to the present time have been in arms against Her Majesty's authority will never be prosecuted for past offences, excepting only those who have been concerned in the murders of the following persons, because those persons were barbarously and treacherously murdered: — The children Parker and Pote, killed at Omata, on the 27th March, 1860; The boy Joseph Sarten, killed at Henui, on the 4th December, 1860; The Native Ngakoti, who was killed, and his wife and her daughter killed at Kaipikari, in December, 1864; Mrs. Margaret Fahey, killed at Eama Eama, on the 16th October, 1863; The boys Eichard Trust and Nicholas Trust, killed at Kennedy's Farm, on the 24th October, 1863; The Eev. Mr. Volkner, killed at Opotiki, on the 2nd March, 1865 ; Mr. James Fulloon, and his companions, killed at Whakatane, on the 27th July, 1865; The Chief Eio Haeaterangi, killed near Wanganui, in January, 1865. The murderers of those persons will be brought to trial as soon as they are arrested. The Governor also excepts from this pardon the Chief Te Pehi, because, having taken the Oath of Allegiance to Her Majesty, he violated his oath, and treacherously attacked the Queen's troops at Pipiriki; when taken, he will be brought to trial for this crime. All others are forgiven. Out of the lands which have been confiscated in the Waikato, and at Taranaki and Ngatiruanui, the Governor will at once restore considerable quantities to those of the Natives who wish to settle down upon their lands, to hold them under Crown grants, and to live under the protection of the law. For this purpose Commissioners will be sent forthwith into the Waikato, and the country about Taranaki, and between that place and Whanganui, who will put the Natives who may desire it upon lands at once, and will mark out the boundaries of the blocks which they are to occupy. Those who do not come in at once to claim the benefit of this arrangement must expect to be excluded. The Governor will take no more lands on account of the present War. As regards the prisoners now in custody, the Governor will hold them until it shall be seen whether those who have been in arms return to peace. If they do so the prisoners will be set at liberty. Tho Governor is sending an expedition to the Bay of Plenty to arrest the murderers of Mr. Volkner and Mr. Fulloon. If they are given up to justice the Governor will be satisfied ;if not, the Governor will seize a part of the lands of the Tribes who conceal these murderers, and will use them for the purpose of maintaining peace in that part of the country, and of providing for the widows and relatives of the murdered people. The Governor now calls upon all the Chiefs and Tribes to assist him in putting a stop to all such acts of violence for the future ; for all, whether Europeans or Natives, have a common interest in putting an end to such crimes, and in preserving the peace of the Colony. The Governor is about to call a meeting of all the great Chiefs to consult with his Government as to the best means whereby the Maori people may be represented in the General Assembly, so that they

A.—No. 1

may henceforth help to make the laws which they are called on to obey. At that meeting all matters can be discussed, with a view of establishing a general and lasting peace throughout New Zealand. Her Majesty the Queen desires that equal laws and equal rights and liberties may be enjoyed by all Her subjects in this Island, and to that end the Governor in the name of the Queen publishes this Proclamation. Given under my hand at the Government House, at Wellington, and issued under the Public Seal of the Colony of New Zealand, this second day of September, in the year of our Lord one thousand eight hundred and sixty-five. By His Excellency's Command, G. Geet. Feed. A. Weld. God Save the Queen !

No. 4. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 126.) Government House, Wellington, Sir,— 14th October, 1865. I regret to transmit for your information a copy of a letter I have received from Mr. Weld, informing me that he places in my hands his own resignation and those of his colleagues. 2. The New Zealand Ministers arrived at this determination because they 'were virtually defeated on a question of finance, and thus felt that there was an absence of that hearty support on the part of the Assembly which could alone justify them in carrying on the Government, and could have enabled them to succeed in that policy of self-reliance and self-defence by which they had determined to stand or fall. 3. Mr. Stafford has undertaken to try to form another Ministry, but it is doubtful whether I shaU be able to report by this mail if he has succeeded in this attempt. I have, &c, The Right Hon. Edward CardweH, M.P. G. GREY. Enclosure in No. 4.

Oct. 12, 1865.

The Hon. F. A. Weld to Governor Sir Geoege Geet, K.C.B. My Deae Sic Geoege Geey,— Wellington, 12th October, 1865. It was last, night moved in the House of Eepresentatives that a part of the revenue to arise from the proposed Stamp duties should be appropriated to the Provinces ; but such a plan, if carried, would entirely disarrange the financial scheme which the Government considers necessary to carry into effect the policy of self-reliance and self-defence, by which it must stand or fall. Notwithstanding that the House was informed that the question was considered by the Government as vital, this motion was negatived only by the casting vote of the Speaker. This practical defeat of Ministers, taken in connection with several recent divisions, indicates an absence of that hearty support on the part of the House which could alone justify the Ministers in undertaking the responsibility of conducting the government of the Colony in the present critical position of its affairs. The Ministers therefore respectfully place their resignations in your Excellency's hands ; and in doing so, they beg to express their deep sense of the cordial co-operation you have always afforded them during the term of their office. I have, &c., His Excellency Sir George Grey, K.C.B. F. A. Weld.

No. 5. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 127.) Government House, Wellington, Sir,— 14th October, 1865. I have the honor to transmit for your information copies of letters from Brigadier-General Waddy, C.8., detailing the murder by the Hau Hau fanatics of Kereti, a Native Chief, and the probable murder of Mr. C. Broughton, Interpreter to Her Majesty's Eorces in the Whanganui District by the same people. 2. In each of these cases Brigadier-General Waddy's messenger was decoyed into a friendly interview, and then, in the one instance, certainly, and in the other case too probably, murdered.

A. No. 4a, and E. No.6,SesB.papers,

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ZEALAND TO THE SECRETARY OF STATE.

A.—No. 1.

3. These murders are (if the latter has been committed, which I do not doubt) of the most shocking and treacherous character. It is greatly to be regretted, as you will find from the enclosed copy of my letter to Major-General Chute, that the action of the military authorities has been so tardy; but as you will have seen from previous correspondence, I am quite ignorant of the nature of the instructions under which Brigadier-General Waddy has been acting. Major-General Chute will, I have no doubt, prevent such difficulties from arising for the future. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

A. No. 4a, Sess. papers, 1865.

No. 6. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 136.) Government House, Wellington, Sir,— 10th November, 1865. I have the honor to transmit for your information a copy of a Memorandum I have received from my Responsible Advisers enclosing a Resolution, adopted by the House of Representatives in New Zealand, in relation to the opinions I had formed of the inexpediency of allowing the removal of the troops from the Colony in the month of May last until the Weraroa pa had fallen. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Mr. Stafford, 28th October, 1865.

Enclosure in No. 6. Copy of a Memobandum by Mr. Stafford. Ministers transmit to His Excellency the copy of a Eesolution adopted by the House of Eepresentatives this day, expressing its thorough approval of the action taken by His Excellency with reference to the removal of a portion of the regular troops in May last. Wellington, 28th October, 1865. E. W. Staffoed. Sub-Enclosure to Enclosure in No. 6. Extract from the Journals of the House of Eepeesentatites, Saturday, the 28th day of October, 1865. Resolved, —" That this House, without reference to the general policy of retaining the Imperial troops in the Colony, and without admitting any pecuniary liability to the mother country on that account, desires to record its opinion that under the circumstances stated by His Excellency, in the frinted papers laid before the House, and especially having reference to the long inaction of the mperial troops in the immediate neighbourhood of the Weraroa pa, prior to its capture, His Excellency exercised a sound discretion in the course he adopted in protesting against the proposed removal of a certain number of the troops in the month of May last, on the occasion when they were proposed to be removed by the General." (True Extract.) F. E. Campbell, Clerk House of Eepresentatives.

Leg. C. Journals, 1865, p. 124. Mr. Stafford, 26th October, 1865. H. E. the Governor, Oct. 26,1865. Mr. Stafford, 27th Qctobor, 1865.

No. 7. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 140.) Government House, Wellington, Sir,— 10th November, 1865. I have the honor herewith to transmit for your information a copy of an Address which I have received from the Legislative Council of New Zealand, enclosing resolutions adopted by the Council, to the effect that it is unnecessary that the Imperial troops should be retained in this Colony. 2. I have at the same time the honor to transmit a copy of a Memorandum I have received from my Responsible Advisers in relation to the same subject. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

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DESPATCHES FROM THE GOVERNOR OE NEW

ZEALAND TO THE SECRETARY OF STATE.

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A.—No. 1

Enclosure 1 in No. 7. Copy of a Memorandum by Mr. Stafford. Ministers advise that the Legislative Council be informed that, in accordance with the request expressed in their Address, the accompanying Eesolutions will be sent to the Secretary of State for the Colonies. Ministers will submit a Memorandum on the subject in time for transmission by the next mail to England. 26th October, 1865. E. W. Stafford.

Enclosure 2 in No. 7. Copy.of a Memorandum by His Excellency the Goveenoe. The Governor has received from his Eesponsible Advisers a Memorandum upon the subject of the Eesolutions of the Legislative Council of yesterday's date, reflecting in strong terms upon the retention of Her Majesty's regular forces in the Colony. The Governor trusts that he may be made acquainted with the views of his present Eesponsible Advisers upon the periods at which the whole of Her Majesty's regular forces now in New Zealand are to leave the Colony, in order that an understanding may be come to upon the subject before the General Assembly is prorogued. Government House, Wellington, 26th October, 1865. G. Grey.

Enclosure 3 in No. 7. Copy of a Memoeandum by Mr. Stafford. Ministers desire to express their views on the question raised by His Excellency's Memorandum of the 26th instant, and certain Eesolutions passed by the Legislative Council. Ministers would, however, in the first place, direct His Excellency's attention to the fact that the Eesolutions were passed near the close of the session by one branch of the Legislature only—the Legislative Council. That about one-half of the members were absent from the place of sitting, comprising all the members of that body (except the Speaker) most deeply interested in the question, from their connection with the districts lately the seat of war. Ministers did not desire, at that period of the Session, to use the power they might have used, ot placing gentlemen in the Council to ensure a more general expression of opinion, notwithstanding that the late Ministry whom they superseded had added ten new members to the Council. Ministers deem it right to state these facts in order that a proper estimate may be arrived at of the value to be attached to the Eesolutions, with respect to the questions raised by them. Ministers would also observe, that they can scarcely think that those Members who did support the Eesolutions were aware of the implied censure cast on His Excellency with respect to action taken in a grave emergency under a sense of individual responsibility on this question resting peculiarly on the Eepresentative of the Crown. The only occasion on which His Excellency appears to have interposed to delay but for a few months the departure of a portion of Her Majesty's troops was in May last; and Ministers desire to state that they entirely agree in the sufficiency of the reasons advanced in His Excellency's Despatches to General Cameron of May and June last, for delaying the removal of the troops referred to from the recently disturbed district in which they were stationed. With respect to the whole question, Ministers would observe that the late Ministry had been unable to obtain the consent of the present Parliament to the measures they deemed necessary to ensure the success of their plans for raising a Colonial army. The present Parliament, elected five years ago, before the rapid expansion of the population of the southern portion of New Zealand, does not now fairly represent the whole country, a Bill being now before the Legislature to add thirteen Members to that part of the Colony. The present Parliament being also about to expire by effluxion of time, it was deemed desirable, and was the evident wish alike of the House and the country, that the decision of the question of the future defence of the country should be left to the new Parliament. That question must now in a few months bo decided. The position of the present Ministry is this : When they came into office some ten days since, they found that of the five regiments which the Imperial authorities had desired to be sent home, one was on the eve of embarking, and orders had been issued by His Excellency for the immediate despatch to England of the remaining four regiments. Ministers were satisfied to leave these arrangements undisturbed, especially as the whole question involved would necessarily require to be decided after the country generally had expressed its voice with respect to it at the approaching elections ; and in the meantime, as stated by the First Minister in the House of Eepresentatives, Ministers have made provision for a sufficient force to repress any outrage that may occur on the part of the Natives. When the new Parliament has been assembled, and the whole question of the future defence of the Colony remitted to its consideration and decision, Ministers will be prepared to propose such measures as in their judgment will provide for the future defence of the country. At the same time, Ministers deem it their duty frankly to state, that they are firmly convinced that the Colony, in its present exhausted state, after three years of a most expensive war, is as utterly unable to raise and maintain a standing force of the amount contemplated in Mr. Weld's Memorandum of the 20th March last, as it has been to pay the contribution of £40 a head demanded in respect of the Imperial troops, and that no propjosal to provide for a force of that amount would be entertained by the next Parliament. Ministers submit that, pending the decision of the next Parliament on a question of such supreme importance to the Colony, all the arrangements which they found in operation when they came into office a few days since should remain undisturbed. Wellington, 27th October, 1865. E. W. Stafford. 2

A.-No. 1.

No. 8. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 147.) Government House, Wellington, Sir, — 14th November, 1865. I have the honor to transmit for your information copies of a correspondence between myself and Major-General Chute, from which you will find that I see no reason for making any change in the arrangements made for the return of five regiments from this Colony to England. 2. I beg to direct your attention to the fact, that the delay which has taken place in the embarkation of the second regiment for Europe is not to be attributed to any interference on my part, but to the difficulty of obtaining suitable transport. 3. I beg further to report, that I recommended that further considerable reductions should be made in the military expenditure incurred by Great Britain in this Colony by sending home a part of the Royal Artillery and the Military Train, now serving here. Major-General Chute however informed me that no authority had yet been received from the Secretary of State for War for the return of any part of these corps to Europe. I have, &c, The Right Hon. Edward CardweU, M.P. G. GREY.

H. E. the Governor, Aug. 9, 1865. Major-General Chute, 9th Oct., 1865. H. E. the Governor^Oet. 13,1865.

Enclosure 1 in No. 8. Governor Sir George Grey, X.C.8., to Brigadier-General Waddy, C.B. Sir, — Government House, Wellington, 9th August, 1865. I have the honor to acquaint you that, in compliance with the instructions of Her Majesty's Government, it is my intention to order the immediate return to Europe of five of the regiments now serving in this command, and that I am of opinion that at least one regiment per month may safely be withdrawn from New Zealand, until five regiments have been sent home. I have therefore the honor to request that you will issue orders for the return of one regiment to Europe with as little delay as possible. I have in another letter requested you to meet me at Wellington, when we shall be able to settle in detail the dates at which the other regiments can be embarked for England. I have, &c, The Hon. Brigadier-General Waddy, C.B. G. Geey.

Enclosure 2 in No. 8. Major-General Chute to Governor Sir George Grey, K.C.B. Sir,— Wellington, 9th October, 1865. Adverting to your Excellency's letter of the 9th of August last, addressed to BrigadierGeneral Waddy, C.8., conveying your orders for the immediate return to Europe of one regiment, and your opinion that one regiment per month may safely be withdrawn until five regiments have been sent home, I have the honor to inform your Excellency, that, in pursuance of your instructions, the 65th Eegiment will have embarked in the course of a few days; and in reference to the interview I had the honor of having with you this morning, I shall feel obliged by your Excellency informing mo whether I may make any arrangements for the departure of the remaining four regiments. I take this opportunity of stating that the resident Transport Officer has reported that, on account of the difficulty of obtaining a suitable class of troop-ship in New Zealand, it will be necessary that he should have at least two months' notice for securing tonnage for the conveyance of troops to England. I do myself the honor to enclose the copy of a letter from the Secretary of State for War, dated 26th July, 1865, received last mail. I have, &c, His Excellency Sir George Grey, K.C.B. T. Chute, Major-General.

Sub-Enclosure to Enclosure 2 in No. 8. Sir,— War Office, 26th July, 1865. I have the honor to acknowledge the receipt of your Despatch of the 15th of May last, No. 121, and to inform you that I approve of the steps which you have taken to commence the withdrawal of the troops from New Zealand, and that I trust you will be able, not only at an early period to complete the reduction of the force contemplated in my Despatch of the 29th February, but that the instructions sent by the Secretary of State for the Colonies to the Governor will be bo carried into execution by that officer as to tend to the almost immediate removal of the whole. I have, &c, Lieut.-General Sir Duncan Cameron, X.C.8., De Grey asd Eipon. Commanding H.M. Forces, New Zealand.

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A.—No. 1.

Enclosure 3 in No. 8. Governor Sir George Geey, X.C.8., to Major-General Chute. Sir, — Government House, Wellington, 13th October, 1865. In reply to your letter of the 9th instant, regarding the views I have expressed upon the subject of the return of Her Majesty's troops to Europe, I have the honor to state that I see no reason to make any change in the arrangements it was intended to carry out regarding the departure of five regiments from this Colony ; and as the 65th Eegiment has already embarked, or is on the point of embarkation, I think a second regiment may be sent home at the date at which you say transport can be procured for it, namely in about two months from the present time. I have, &c, The Hon. Major-General Chute. G. Grey.

No. 9. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 150.) Government House, Wellington. Sir,— 14th November, 1865. I have the honor to enclose for your information a copy of a Memorandum which I have received from my Responsible Advisers, in which they request me to inform you that by the preliminary arrangement with the "Panama, New Zealand, and Australian Royal Mail Company," it is provided that the contract entered into by the Lords of the Admiralty for the Steam Mail Service between Australia and New Zealand shall be continued until the commencement of the Panama Service, at present fixed to commence on the Ist of June, 1866. The amount to be contributed from Imperial Eunds towards the cost thereof being, from the Ist instant to the Ist of June, 1866, at the rate of £6500 instead of £13,000 per annum, as proposed in the last paragraph of your Despatch of the 24th August, 1864. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Mr. Stafford, 9th November, 1865.

Enclosure in No. 9. Copy of a Memorandum by Me. Staffoed. By the Secretary of State's Despatch of the 24th August, 1864, it was intimated that the Lords Commissioners of Her Majesty's Treasury considered it advisable that the contract entered into by the Lords of the Admiralty for the Steam Mail Service between Australia and New Zealand should be terminated on the Ist November, 1865, and in reply the Secretary of State has been informed that notice to that effect was given by the Governor on the 30th September, 1864. Ministers now submit that the Secretary of State for the Colonies be informed that by the preliminary arrangement with the " Panama, New Zealand, and Australian Eoyal Mail Company " (formerly the 1.C.E.M.C0.), it is provided that the contract above alluded to shall be continued until the commencement of the Panama Service, at present fixed to commence on the Ist of June, 1866. The amount to be contributed from Imperial Funds towards the cost thereof being, from the Ist instant to the Ist June, 1866, at the rate of £6500 instead of £13,000 per annum, as proposed in the last paragraph of the Despatch above quoted., 9th November, 1865. E. W. Stafford.

No. 10. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 153.) Government House, Wellington, Sir, — sth December, 1865. I have the honor to transmit for your information a copy of a letter which has been received from Mr. Smith, the Civil Commissioner for the Bay of Plenty, reporting that our Native forces have arrested seventeen Natives out of twenty-three who are believed to have taken a part in the murder of Mr. Eulloon on the 22nd of July last. As one of the supposed murderers had previously fallen in a skirmish, only five of these persons now remain unaccounted for. 2. The fact of murderers being thus arrested by their own countrymen and given over to justice must exercise a very powerful influence upon the Native Race, and must also, I think, be regarded as a sure sign that the unhappy disturbances which have for so long prevailed in this country are now rapidly terminating. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Oct. 31, 1865.

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Enclosure in No. 10. Mr. Smith, to the Hon. Colonel Eussell. Sir— S.S. " Sturt," off Opotiki, 31st October, 1865. I have the honor to report for your information that the prisoners captured by the Arawa at Te Teko pa, who are supposed to have been concerned in the Whakatane murders, to the number of thirty persons, were embarked in the s.s. " Sturt " at Te Awa-o-te-atua this morning, and are now about to be landed at this place. I have further to report that I came over to Te Awa-o-te-atua from Maketu on the 26th instant, accompanied by Mr. Commissioner Clarke, for the purpose of ascertaining what evidence could be procured against the prisoners, and for arranging for their being taken to Opotiki. Most of the principal witnesses, including the survivors from the " Kate," (with the exception of Mr. Bennett White), are now on board. Out of twenty-three persons named by different witnesses as forming the party which went out from Whakatane in the whale-boat and murdered Mr. Fulloon and his companions on board the cutter " Kate," seventeen are now on board (one of them wounded), one has been killed, two have not been found, and the remaining three belong to another tribe (Te Whanau a Apanui) living to the east of Opotiki. The notorious Hau Hau prophet Horomona, with the Ngatiawa chiefs who sanctioned or commanded the perpetration of the murders, are also among the prisoners on board. The loyal Ngatiawa Chief lukehu, with several of the Arawa Chiefs and assessors, have accompanied me hither for the purpose of being present at the coming trial by court martial. Mr. Commissioner Clarke has kindly offered to act as interpreter on the occasion. I have, &c, T. H. Smith, The Hon. Native Minister, Wellington. C. O, Bay of Plenty.

No. 11. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 155.) Government House, Wellington, Sir,— 9th December, 1865. I have the honor to acknowledge the receipt of your Despatch No. 78, of the 25th of September last, enclosing a letter from the War Department, dated the 20th of the same month. 2. Lord de Grey has, in that letter, made some remarks regarding my proceedings which have placed me in a position of much difficulty. 3. His Lordship states that a careful perusal of Sir D. Cameron's Despatches proves to his Lordship that that officer has not in those communications assumed any latitude inconsistent with the high position which he filled in New Zealand. 4. On or about the 9th of April last, Sir D. Cameron transmitted a communication to Lord de Grey, which contained the most serious accusations against me. No copy of that letter has yet been furnished to me, and it now appears that Lord de Grey is satisfied that Sir D. Cameron, in making the accusation he then did, had not assumed any latitude inconsistent with his high position. 5. I beg to say that I think this view of the case is most unfair to me. The Secretary of State for War has received in a confidential letter, which he has not communicated to me, most serious and damaging accusations against me. He must have believed those accusations to be either true or untrue. In the first case, I ought to have been forthwith punished in some most exemplary manner. In the other case, I cannot but think that some reparation is due to me, and that the Secretary of State for W rar should in serious and fitting language have expressed his extreme disapproval of the course pursued by the General Officer, in having made to Her Majesty's Government such unbecoming and serious accusations against the Governor of the country, against his Ministers, and against its inhabitants. 6. In my own defence, I think it right to say that the accusations made against me by Sir D. Cameron were unfounded and malicious. I say this advisedly, for Sir D. Cameron's offence against me was, in regard to these accusations, twofold; for he made them in a letter to myself on the 30th March, and then, after full time for reflection, transmitted them to Her Majesty's Government nine or ten days afterwards, that is, on or about the 9th April, without giving me an opportunity of at the same time forwarding any reply. 7. Sir D. Cameron's excuse for this latter proceeding is invalid. He states that he thought it very probable that after I had received his letter of the 30th

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March, which must have reached me before the departure of the April mail, I should have considered it necessary to notice it in my correspondence with the Secretary of State, and that he, therefore, sent it at once to put the Secretary of State for War in possession of the whole case. I could understand this if Sir D. Cameron had been defending himself against accusations I had made against him. But whence this undue and indecorous haste to send home shameful and unfounded accusations against myself and my Responsible Advisers, before we could reply to them. 8. Lord de Grey, Her Majesty's Principal Secretary of State for War, received these accusations against me from Sir 1). Cameron in a confidential letter which I have never seen, and His Lordship has now, in a public letter, signified his approval of Sir D. Cameron's having made them in the manner he did. 9. The statement made by the W Tar Department that they were made by Sir D. Cameron in a private letter which he had not sent home officially, taken in connection with the other statement that a careful perusal of Sir D. Cameron's Despatches proved, in Lord de Grey's opinion, that General Cameron had not assumed to himself any latitude inconsistent with the high position he filled in New Zealand, may perhaps be said not to meet the question; indeed whilst the latter statement seems to explain all, the former statement shows that the real question is left untouched. 10. If it was thought right to leave it in this state, because the question was one which it was difficult to meet, then, I think, instead of casting blame upon me who had been so wronged, as has been directly or inferentially done in every one of the Despatches, Her Majesty's Government should have seen that some , reparation had been made to me for the wrong that had been done. 11. It is right that I should notice incidentally other points which have arisen in the correspondence. 12. General Cameron in his letters relating to the matter under discussion alludes to the publication in the local newspapers of a Memorandum from my Responsible Advisers dated the Bth of April, and Lord de Grey adopts the same view of the subject as General Cameron. I have already pointed out that the Government did not publish the Memorandum in a local newspaper, but that it Avas copied from a Parliamentary Paper into a newspaper. 13. Again in reference to this Memorandum Sir D. Cameron repeatedly states that he never saw the Memorandum until he read it on the 15th of May, in a local newspaper. This is a mere play upon terms. Upon the Ist of May, he received from me in a letter the whole substance of the Memorandum expressed in the same words as the Memorandum. This was the way in which I ought to have communicated it to him. I feel sure if I had simply transmitted to him a copy of the Memorandum he would have complained that I had treated him with disrespect in so doing. 14. I enclose a copy of a Memorandum which shows the opinions I expressed upon communicating General Cameron's letter to my Responsible Advisers, and the line of policy I urged them to pursue. I still entirely adhere to the opinions I then held. It was only by communicating to my Ministers the purport of Sir D. Cameron's letter that I should have been justified in advising them to follow strictly the line of policy. When Mr. Weld and his colleagues knew my reasons for requesting them to act as I did, they felt the necessity of such a line of conduct as keenly as myself, and none can deny that the result has been good, and that the Colonists have done their duty. Eor their forces since that time there have been no winter quarters, no shrinking from any danger, no rest from operations in the field, no halting whilst an enemy was to be met, and, in a few months, more has been done by them for the pacification of the country than years had previously achieved. To what the Colonists and Her Majesty's Native subjects have recently done, unaided by British Troops, I can justly point as the best refutation of the accusations that —either myself or my Ministers wished for war for the profit and gratification of the colonists —that we did not care how many British Officers and soldiers were lost in an operation so long as we gained some end of policy, or that we were as sorry as the rebels that they could not inflict a loss upon the Queen's forces with little or no risk to themselves. 3

Mr. Cardwell's Despatch No. 50, July 26, 1865.

Sess. Papers 1865, A. No. 1, p. 15.

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DESPATCHES FROM THE GOVERNOR OF NEW

15. A large expenditure has also been saved to Great Britain, the settlers have learned with what safety they can rely upon themselves. The Natives will henceforth respect more fully their European neighbours, who they have found so willing to take the field and so efficient in it. The fact of the two races having fought side by side to enforce Her Majesty's authority and repress outrages, has shown the Native race that their Queea has confidence in them, and that their European fellow subjects trust them, whilst both races will feel that they mutually recognize that they have common interests. All these circumstances united afford the best guarantees for the future peace of the country and the happiness and unanimity of Her Majesty's subjects of all races. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

No. 12. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 156.) Government House, Wellington, Sir, — 11th December, 1865. In your Despatch No. 50, of the 26th July last, it is stated in consequence of letters received by Lord de Grey that I had made an improper and unfair use of a private letter from Sir D. Cameron. I had hoped that this accusation publicly made would have been as publicly retracted when further information had been received, but I regret to perceive that Lord de Grey in a letter to you from the War Office, of the 20th September last, is so far from retracting his previously expressed opinion after receiving further information, that he expresses a still stronger opinion against me by saying—that he is not of opinion that my knowing that Sir D. Cameron had transmitted to Lord de Grey a letter which His Lordship received and has inferentially approved of, containing charges against myself and my Responsible Advisers, rendered it necessary for me to make known to them the contents of the letter in question. 2. Thus I am again made in a public document to appear to have been guilty of the dishonorable act of having made a wrong and unfair use of a private letter. 3. This is a matter upon which I cannot allow any doubt to rest. I therefore say on my part that I acted honorably and properly in the matter, and that the line of conduct Sir D. Cameron would have had me adopt would have been dishonorable and improper. 4. On the first part of the question: If my subordinate officer, but still an officer of high rank, writes me a letter in which he accuses me of public crimes which would render me altogether unfit to serve Her Majesty, and marks that letter ' private,' he has in my opinion forfeited all right to have it treated as a private communication. It rests with me, the accused man, to make it public if I think proper : if I believe he will send his accusations to Her Majesty's Government, as Sir D. Cameron did in this case, I have if possible a still greater right to treat his letter as a public document. I assert confidently that Sir D. Cameron in making such gross accusations against me privately, to Lord de Grey, one of Her Majesty's Principal Secretaries of State, and His Lordship in privately receiving them, were the wrong doers, and not myself in treating these accusations as having been publicly made, and in meeting them as having been so made. 5. On the second part of the question —whether it was necessary for me even if I knew that Sir D. Cameron had transmitted the letter in question to one of Her Majesty's Principal Secretaries of State, to communicate its contents to my Responsible Advisers, —I still say with due respect to opinions which have been expressed to the contrary, that it was necessary for me to have done so. 6. If I had wished to give Sir D. Cameron an opportunity of recalling his letter he shut me out from doing so by sending a copy of it home before I could communicate with him; and lam quite satisfied that every rule of right required me not to withhold from men between myself and whom the most friendly relations existed, and with whom I was in constant intercourse regarding the very questions raised in General Cameron's letters, a knowledge of the nature of the

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accusations which were being made against us, and which were sent privately to the Queen's Government. 7. Upon the whole I can arrive at no other conclusion than that Her Majesty's Government have been misled by statements made to them by Sir D. Cameron, and that upon being more fully acquainted with the facts of the case, they will regret having given expression to the opinions contained in their public Despatches. 8. I have met this question as if the letters referred to in it had been really private letters, because I know that even in that extreme case I had acted honorably and rightly, and conscious of this I was determined to meet it in the extreme form in which General Cameron had placed it; but in truth they were not private letters, and he was entirely unjustified in placing the matter in this light. The letters were in the form in which almost the whole of our official correspondence had been conducted. General Cameron dealt with these letters as public ones whenever it suited his convenience or objects to do so, without giving me-the least warning that he intended to do this. A remarkable instance is his private letter to me of the sth January, 1865. He sent this as a public letter in his public Despatch to Lord de Grey, of the 7th of January, without giving me the least intimation on the subject, although it was a letter which unaccompanied by any explanations from myself, was calculated to do me injury with Her Majesty's Government, and regarding which I should have exceedingly desired to furnish explanations if it was to have been sent home. Lord de Grey also did not hesitate to treat this as a public letter, and published it in the Parliamentary Papers of the 6th April, 1865, without any answer to it from myself being published at the same time, a proceeding which I thought extremely unfair, as this letter of General Cameron's was likely to injure me with the British Government, the British Parliament and public, and was clearly meant to produce this effect. I however never said a word on the subject or complained of what had been done, nor should I now have mentioned the matter except in my own defence. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Sess. Papers 1865, A. No. 4, p. 2.

No. 13. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 157.) Government House, Wellington, Sir,— 12th December, 1865. I had the honor to receive, upon the Bth instant, your Despatch No. 76, of the 22nd September last, directing me to report upon the subject of a Despatch addressed by General Cameron to Lord de Grey,-upon the 7th of July last, regarding a block of land at Waitotara. 2. I believe a consideration of Sir D. Cameron's Despatch will show how entirely unfit a person he was to be entrusted with the duty of making behind my back confidential communications to Her Majesty's Government, occasionally unfavorable to myself and my Ministers, regarding the management of affairs in the Colony, as far as they relate to the manner in which the Troops are employed, which terms seem to have included every subject. 3. I have, ever since I have known this system prevailed here, earnestly remonstrated against it, but I feel quite sure that a perusal of Sir D. Cameron's Despatch of the 7th of July will show that to give to a person so eminently disqualified for the task such a secret and irresponsible power over me was to ensure my ruin, and to render it certain that serious difficulties must arise between myself and Her Majesty's Government. 4. I find it difficult to write with calmness on such a document as Sir D. Cameron's letter of the 7th of July is, but I shall strive to make the matter as clear as I can. 5. In the first place, the subject treated of is the purchase of a block of land by the Government from the Natives, which purchase, according to Sir D. Cameron, was an " iniquitous job."

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6. Whether this was true or not, it was clear that no differences ought to be allowed if possible to arise on such subjects between the Government and the Queen's subjects. But General Cameron in making the several charges against me contained in his Despatch of the 7th of July, has not mentioned to Her Majesty's Government that from a determination to prevent such difficulties taking place for the future, I, upon the 17th of May, 1865, issued a Proclamation revoking all commissions authorizing the purchase of lands on behalf of the Crown from the Aboriginal inhabitants of New Zealand, and proclaimed that the Native Land Purchase Department was from and after that date done away with and ceased to exist. Only those well acquainted with the Colonies can tell how great a constitutional change this was, and what prejudices, interests, and feelings had to be overcome before it could be brought about. 7. I had also advised the preparation of a measure for the establishment of Courts which could entertain, hear, and decide all disputed questions connected with Native lands. This is now the law of the Colony. In all these proceedings my Ministers were cordially advising, originating, aiding and assisting. 8. Thus every precaution in my power, or in that of my Ministers, or of the local Legislature, had been taken to prevent any difficulties with regard to land purchases taking place for the future. 9. General Cameron leads Lord de Grey to believe that he only casually received an account of the transactions connected with the purchase of the Waitotara block of land as he was riding near Whanganui a day or two after the engagement at Nukumaru (26th January, 1865); he further states that he had no means of ascertaining the truth or falsehood of the account he received, but that his informant was a very respectable settler, (name unknown, or at least kept back), who had been a long time in the country, and appeared well acquainted with the history of the transaction. 10. This account of the matter is inconsistent with General Cameron's letter to me of the 28th of January, in which he tells me : " Since I have been in this " part of the world I have made inquiries about the purchase of the Waitotara " Block, and have reason to believe that it was a more iniquitous job than that of " the Waitara Block. lam not surprised that the Natives have opposed our road- " making. The Government at home ought to be made acquainted with the true " history of the business." Nor is it consistent with his letter to me of the 11th of w January, 1865, from which it appeared that even prior to that date the officers of the Head Quarters Staff had been making inquiries into the subject, and had reported to the General: " One thing is very certain, and that is that the man who sold the block had no right to do so, and it is the old Waitara dodge for getting up a war, and the consequent military expenditure at Whanganui." Nor is it consistent with the fact that from the Head Quarters a letter was written by a distinguished officer on the 4th February, to go to England by the next mail after the General's letter to me of the 28th of January, wliich was published in England, and attacks me in the most shameful manner in reference to this Waitotara Block of land, using some remarkable words, also used in the General's letter to me. 11. Sir 1). Cameron also complains that after the land was purchased by the Government it was then hurriedly sold, without the usual notice by advertisement, to a few speculators in Wellington at ten shillings (10s.) an acre, the sum realized being £13,000, the amount paid to the Natives being £2,500. 12. He knew quite well that if this was true I had nothing to do with it. I had no more control over the matter than he had. The land must have been sold according to law. If wrong had been suffered by any individual there were the courts of the country; there was also its Legislature. Conceive a General Officer riding out of London, and meeting a man on the road who complains that the Corporation of London have sold land lawfully, but, in his opinion, unfairly; that the General thereupon reports this to Lord Palmerston, who, not inquiring personally into the matter in a manner satisfactory to the General, is supposed to have neglected his duty, and is called upon to defend his conduct. Were it not from the mischief done to me from such publications in England as the one I send home a copy of,, from the difficulties I am drawn into with Her Majesty's Government, and the trouble and annoyance I am compelled to undergo, the nature of the complaints made would be ludicrous.

Proclamation, dated M»y 17, 1865.

Enclosure in De> spateh No. 158.

ZEALAND TO THE SECRETARY OF STATE.

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13. Again Sir D. Cameron reports regarding me: —" It is a matter of some " surprise that instead of formally referring it to his Responsible Advisers, as " appears by his letter of the 9th of June, His Excellency did not at once satisfy " himself regarding the merits of a question which so immediately affected the " prolongation of the war, and this is the more strange, as if the account I received "be correct, the purchase of the Waitotara Block was a very similar proceeding " to that of the Waitara which Sir George Grey had so severely condemned." 14. Now what chance have I against such a correspondent making unfavorable confidential reports to Her Majesty's Government. 15. I am sent here to govern constitutionally; a complaint is made to me which I have no power, means, or machinery for investigating except those constitutionally provided for me. 16. The information on which this complaint is based, and on which information I am anonymously and scurrilously attacked by a distinguished officer at head quarters, in the English newspapers, is now said to have been received from a very respectable man (name unknown) met with on the road. I however had received it courteously and considerately, and had formally referred it to my Responsible Advisers. My doing so is stated to have been a matter of some surprise. Why, lamat a loss to conceive : The statement as it is written would injure one with those at a distance who did not reflect on the nature of the Government here or who did not know it. But what else could I have done ? Sir D. Cameron knew as well as I did that I had done what was right, and all that was in my power. 17. He does not however state fairly for me what I had done. On the receipt of his complaint I had told him as follows : —" Upon the receipt of your letter I " felt that I ought not to rest under the imputation of holding back any informa- " tion from Her Majesty's Government. I therefore immediately requested my " Responsible Advisers to appoint a Commission to inquire into any facts which " rendered it probable that the purchase of the Waitotara block of land was an " iniquitous job." " They inform me that they have made all inquiries they can and find no " grounds whatever for thinking that the purchase of the W'aitotara Block was a "job. That they are most anxious to appoint a perfectly independent Commission "to inquire into any complaints in regard to the purchase of this block of land, " but that they have no such complaints before them, and do not know what points " they should direct the Commission to inquire into." "As I am very anxious to do justice in this matter, —to do my duty to the " Home Government, and to keep nothing back from them of which they should " be informed, —I should feel very much obliged to you if you would inform me of " the nature of the inquiry you made about the purchase of the Waitotara Block, " what are your reasons for believing that it is an iniquitous job, and upon whose " information your opinions were grounded." " Immediately I am in possession of this information a full inquiry shall be " instituted into the whole matter, and ample justice shall be done, as the state of " the country will now I believe shortly permit of such proceedings being carried " out." 18. I would put it to anyone whether if a General Officer had accidentally picked up a complaint on the road from a person he met riding, which complaint he reported to the Governor, and the Governor had told him that the Ministers had done all they could in the matter, and found no grounds for thinking the complaint had any just foundation, it would not have been reasonable for him to have rested satisfied with that assurance, and to have thanked the Governor for what he had done; or if General Cameron had believed that the complaint was well founded, that it ought to be at once inquired into, as it so immediately affected the prolongation of the war, was it not his bounden duty to have furnished me on the 12th of June last with any information which might have enabled me to follow up the inquiry, instead of refusing to do so and sending his information round by way of England, so that I did not receive it until the Bth of December. I can see no desire for justice in this either for the Natives or for myself.

DESPATCHES EROM THE GOVERNOR OF NEW

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19. General Cameron in his Despatch of the 7th of July reports as follows : — " The Government anticipating opposition to the occupation of the block, com- " menced a road from Whanganui to the Waitotara, with the object of facilitating " the military operations which they foresaw would result from the disputes about " the purchase of the land." 20. I affirm confidently that this is contrary to fact. When in March, 1865, General Cameron put the question to me—" I wish, therefore, that you would " inform me whether you consider the immediate possession of the Waitotara " Block of such consequence that you wish me to attack the Weraroa Pa at once " notwithstanding the risk to which I have referred?" I answered him—"The " idea of the question of the possession of the Waitotara Block has never entered " into my calculations." 21. Sir D. Cameron then goes on to say, in his Despatch of the 7th of July— " To the construction of this road the Natives made no serious opposition until it " reached the boundary of a section of the land reserved by the Natives under the " first agreement, and known as Hori Tipene's Reserve. In it the Weraroa Pa " was constructed as a protest against the further continuance of the road." 22. You will find from the enclosed Memorandum that ten days after General Cameron wrote this, I had an interview at the Weraroa Pa with the principal Chiefs of the Natives alluded to by Sir D. Cameron, who were then in arms, and they voluntarily but distinctly told me that the pa was erected on land which belonged to the Government, and that they had no right there. It was the priest of the fanatics who, in consequence, as he said, of orders from their gods, would not allow them to give the pa up; and those who resisted rather boasted of keeping us off land which belonged to the Europeans. 23. Thus, at the very time General Cameron was complaining of my. not investigating this complaint, I had gone to the pa and heard what they had to say, and this at a very great risk. If investigation had been so urgently necessary, why had not General Cameron gone to the pa long previously ? He had abundant opportunities to do so. 24. I really do not know what further to do in the matter. Ido not think that General Cameron has given up the real source of his information; I believe that that is to be looked for in connection with his letter of the 11th January. 25. I have no means of finding the very respectable settler he met with on the road. General Cameron refrained from giving his name, and the description is so vague that no one could recognize him. My belief is they are all ashamed of what they have said and done in tins matter. At all events I have no complaint before me. Mv Ministers tell me they can do nothing more. The Natives in arms on the spot stated that the land belonged to the Government, and that they had no right there. The only grievance I ever hear of connected with the matter is an allegation that the purchase money of the block of land has not been fairly shared amongst the owners of it, and this complaint, it will be seen from the enclosed correspondence, is being inquired into. This complaint shows that the validity of the purchase is admitted even by the complainants. 26. I have omitted to mention that the Chief of the W^eraroa Pa liimself, a man named Pehimana, now fully admits how wrongly he has throughout behaved. The enclosed letter from him of the 6th instant shows this. In his own quaint language he says —" O Eather the Governor, I have returned to my parent! My " cry is, I will arise and go to my father, and say, Eather, I have sinned against " thee." 27. I can only wish that General Cameron would view it in the same light, and that the matter could thus happily terminate. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY. P.S. —Eifty-seven prisoners with their arms having been taken when the Weraroa Pa was captured, amongst whom were several leading Chiefs, it was thought desirable to see if they had any complaint to make regarding the purchase of the Waitotara block of land, and whether they had constructed the pa as a protest against the further continuance of the road through that land.

Sess. Papers 1865, A. No. 7, p. 3.

Enclosure 2.

Enclosure 3.

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It will be found from their statement that they allege that the pa was planned not by the original owners of the land; that it was principally built by the Waikatos, who built it to fight the Europeans, for the same reason that they had built so many pas in their own country ; that had the Waikatos not come there no fighting would have taken place until the road had crossed the Waitotara River; that at length the sellers of the land assisted in building the pa lest it should be thought they were abandoning the King movement; that the building the Weraroa Pa had nothing at all to do with the purchase of the land at the Waitotara, and they emphatically insist that that purchase was a straightforward one. This statement exactly accords with that made to me by Chiefs of the Waitotara Block upon the spot, and with arms in their hands which they intended to use. G. GREY.

Enclosure 1 in No. 13. Proclamation. By His Excellency Sir George Grey, Knight Commander of the Most Honorable Order of the Bath, Governor and Commander-in-Chief in and over Her Majesty's Colony of New Zealand and its Dependencies, and Vice-Admiral of the same, &c, &c, &c. Whereas Her Majesty has been pleased to assent to " The Native Lands Act, 1862," and by Proclamation of the Governor, dated the twenty-ninth day of December, one thousand eight hundred and sixty-four, the operation of that Act has been extended over the whole Colony of New Zealand. And whereas the operation of this law renders unnecessary the continuance of the Native Land Purchase Department, by which, prior to its enactment, the cession of Native lands to the Crown has heretofore been conducted. And whereas other provisions will from time to time be made for any future cessions of land to Her Majesty which the Governor may permit to be made under clause thirty-two of the said Native Land Act, 1862: Now therefore, I, the Governor, do hereby revoke all commissions authorizing the purchase of lands on behalf of the Crown from the Aboriginal inhabitants of the Colony of New Zealand, and do proclaim that the Native Land Purchase Department will from and after tho date hereof be done away with and cease to exist. Given under my hand, at the Government House, at Auckland, and issued under the Seal of the Colony of New Zealand, this seventeenth day of May, in the year of our Lord one thousand eight hundred and sixty-five. G. Gret. By His Excellency's command, Walter Mantell.

Enclosure 2 in No. 13. Memorandum by Mr. Eolleston. May 11th, 1859. —£500 paid on account of 30,000 acres at Waitotara to Ngarauru Natives. The Ngatiruanui Natives resisting the purchase. February Ist, 1860.—Mr. Deighton complains that the Maoris ask for too large reserves, especially at Peretranui, a reserve of five miles long. It appears from a subsequent letter (April 28th) that difficulties are arising from the unsettled state of affairs at Taranaki, as well as about the price to be paid (*. c. the balance). The reserves amount to 7,301 acres, leaving a block of 24,900 acres, of which 7,500 are poor land, leaving 17,400 acres for a price of £2,500. . On September 4th, 1862, Dr. Featherston asks for £2,000 to complete the purchase, and £1,000 to complete surveys, out of the Land Purchase Loan. On July 4th, 1863, the purchase was effected, and the money, £2,000, paid to Piripi and Eio, who gave a receipt in full. In April, 1865, a claim is put in by Eihari and others to part of the payment, on the ground that they were ignorant of the day of sale. This Dr. Featherston distinctly denies. (See Minute of July 21st.) The Natives have been promised that there shall be an investigation, by two successive, Ministers. It remains for Government to determine the manner and time of this investigation. W. Eolleston. Friends, Mr. "Weld and Mb. Mantell, — Te Aro Pa, "Wellington, 18th April, 1865. Friends, salutations to all of you. Friends, do you hearken ? Your letter has come to us ; we have seen it. Tou said, " Hereafter lot your land claim be investigated." Friends, we are not willing that it be left in abeyance a long while, because that land is (in your possession) in your hand ; what we wish is that the money which remains due on the purchase, £500, and the money for the reserves, which are in statu quo, and have not yet been advanced, be given to us now. Do not withhold it, but give it straight away to vs —let it not bo long —Give ! That is all. From all of us, Eihari Mokaikereru, Hone Te Put.*, Wituraki.

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DESPATCHES FROM THE GOVERNOR OF NEW

Memorandum for Mr. Halse. Eihari Mokaikereru, Te One Putangaanga, and Wi Turaki, formerly of Waitotara, but now living at Te Aro, state that they received no portion of the payment for Waitotara. They now wish to receive some of it; if none remains, they propose that the reserves be sold and proceeds be given to them. They wish particularly that this be done at once, before any of the former residents that have been implicated in the rebellion come in and make their submission and a portion of the reserves, or proceeds of reserves, revert to them. The reserves in question are thirteen in number, viz.: Makino, Te Karakatauira Whakairi, Areiahi, Perekamu, Kaipo, Maeneene, Nukumaru, Okauanga, Pukemahoe, Pukeugaio, Pakaraka, Okeku, and Kaiwi. They request that a time be appointed by the Native Minister for further hearing if necessary. E. W. Puckey, 7th April, 1865. Translator Native Department. Sir, Mr. Mantell, — Te Aro Pa, Wellington, 24th April, 1865. Tho word of Eihari is correct which has reached you about Waitotara, that word is from all of us ; for Dr. Featherston did not give us any of the money for Waitotara, that land belongs alike to Mohi and myself, the payment for which has been consumed. You must give us some money for that which has been spent by others. That is all. Hemi Pahai. To Governor Grey,— Te Aro Pa, Wellington, 27th June, 1865. Salutations to you the parent of (all) men, and also of the orphan. Sufficient are these our expressions of greeting. Do you hearken. This is a word of ours respecting our land, respecting Waitotara, tho portion the money for which has been taken (paid) ; our hands touched not any of that money, no not any of it; we constantly urged Dr. Featherston to give us some money on that account, but none was given us, and Dr. Featherston said that when he went to Wanganui then he would give us some money. I went, and when I got there he did not give any, none at all; but now we will continually bring the matter before you so that some of the money may be given us. Do you yourself give it to us, the money for the reserves at once upon the receipt of our letter. Do not you long delay it. Do you hearken, the payment for the reserve is the sum of one thousand four hundred and seventy pounds. That is all our word to you. Eihari Mokaikereru, Hakaraia te Poho, Hemi Pabai. Memorandum by Dr. Featherston. Sib,— 21st July, 1865. I am satisfied that these parties have no claim to any portion of the Waitotara purchase money. Though aware of the day of payment they did not attend, and when they subsequently went to Wanganui for the avowed purpose of putting in their claim, they never ventured to broach the subject, though they lived with Eio in the Pakaraka Pa some ten days. I am, &c, The Hon. the Minister of Native Affairs. I. E. Featheeston. To Mr. Eolleston,— Te Aro, Wellington, 26th July, 1865. Friend, salutations. Your letter has come to us ; but tho word to you was the Governor's: he expressed it to you. Do you hearken, we say that the word which you have written to us is wrong, viz.: that we had heard what day that payment would have been made. Do you hearken, if we had heard of that day we would have gone down there; but this, do you hearken, the going there of Dr. Featherston was a secret going to Wanganui; when he arrived there he laid down the money ; when he came back here, Hemi (Parai) wont to the office; Mr. Hamlin then informed Hemi, and when ho returned from there he told vs —•" Sons, the money for Waitotara has been expended." That is the reason why wo have importuned that some of the money be given us by Dr. Featherston, and as he did not give it we took it (the case) to Mr. Mantell and Mr. Weld; they made answer—" When Dr. Featherston comes back from the other side it shall be investigated." We waited for that investigation, but not hearing of any investigation for Dr. Featherston (this proceeding of Dr. Featherston's), we have (on this account) taken the matter (letter) altogether before the Governor. Do you understand the subject of our request is quite clear to ourselves as regards the money of the reserves —there is no darkness with regard to the matter in our minds (our claims are valid) —according to our idea they are correct. Now why is it that you gave money to those men who are fighting against the Queen, and why none to us, the people who are quietly sitting beneath the shadow of the Queen ? But now we will still persistently urge upon, you to give some money for us ; do not withhold it, but rather return an affirmative reply to-day, upon the receipt of this by you. If you see this write in reply. That is all, Eihaei Mokaikereru. Memorandum by Mr. J. C. Eichmond. Inform Eihari Mokaikereru that the Government are about to make a further inquiry respecting the purchase at Waitotara, when he will have an opportunity of urging his claims. Ist August, 1865. J. C. Biciimond.

A.—No. l.

To Mb. Eolleston, — Te Aro, 3rd August, 1865. Friend, salutations. Your letter has come to us who are living here. We are well pleased with that word which you have written to us. Do you hearken to what we think. The matters relative to the reserves are quite clear, because the money has been expended. That is the reason why it is clear to us. If it were land that had been secured by the payment of a portion of the price fixed, in that case the whole circumstances should be inquired into ; but as it is the whole of the money has been expended, and your inquiry into all the particulars will not take long, only let us know the day fixed for your inquiry, and send for us to bo also present, so that we may speak together with you. That is all. Those words are from us all. Eihari Mokaikereru. To Mr. Eolleston, — Te Aro Pa, 11th September, 1865. Friend, salutations. Mine is a word to you. What aro you doing in the matter we were talking about (in reference to our previous correspondence), regarding the money for the reserves of my place at Waitotara ? for this is now September, but no voice from you has come forth to me, so as I may know that you still cause to remember what we talked about, lest it should be forgotten by you ; but rather let another word come forth from you, for my thoughts still rest upon our talk about the money for the reserves. If you were to give me some of the money for the reserves, in that case I would cease to importune you; but as it is, I will continue to importune you. My word urging you to give me the money which I persist to importune you for will not cease. That is all. Eihari Wunu (Mokaikereru.)

Enclosure 3 in No. 13. To My Father, the Governor, Sir, — Putiki, 6th December, 1865. Salutations. Hearken, my regard for my tribe has ceased as the evil has become great (through their conduct). I remained there (amongst them) a long time anxiously endeavouring by argument to induce them to cease doing wrong, but they would not hearken to me. After my arrival in Whanganui they committed two murders, namely, those of Kereti and Mr. Broughton, the result of which is, that I have resolved to treat them as enemies. It is for your Excellency to consider about removing the veil from my eyes, that I may be able to see them, for they have become my foes and my respect for them has ceased. How often are they, my tribe, to do evil to me and I (be expected) to forgive them ? This is my ngeri : " Heaven, O Earth ! Your love is divided, the discussion and the arguments have continued long, and the evil thoughts and intentions having occasionally shown themselves by angry words and speeches have at length openly manifested themselves " (in the murders of Kereti and Mr. Broughton. 0 Father, the Governor. I have returned to my parent. My cry is, " I will arise and go to my Father : and say unto him, Father, I have sinned against Thee." Thisjtalk is from me your truant son. Pehimana te Tahua, of Waitotara. To Governor Grey.

No. 14. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 158.) Government House, Wellington, Sir, — 12th December, 1865. Adverting to your Despatch No. 76, of the 22nd September last, enclosing a letter from Sir D. Cameron to Eord de Grey, dated 7th July, 1865, making the most serious accusations against me in reference to the Waitotara block of land, in order that you may understand the persecution to which I have been subjected, I beg to call your attention to the following circumstances, to which, up to the present date, I have silently submitted. 2. General Cameron, upon the 28th January last, wrote to me a letter (a copy of which is enclosed) containing offensive and irritating remarks, especially in relation to the Waitotara block of land. 3. On the 4th Eebruary last, —that is some days subsequently to the date of General Cameron's letter, —a letter was written by a distinguished officer from General Cameron's Head Quarters, the genuineness of whose communication was vouched for, which was published in the English newspapers. 4. This letter was written in time to go home by the next mail which left for England after the date of General Cameron's letter to me; and even the very words of his letter, and unusual words, are made use of in this letter wliich emanated from his Head Quarters, which clearly shows how fully his views had been communicated to the force under his command, and which contains disgraceful untruths in reference to myself. 5

Sess. Papers 1865, A. No. 4, p. 6.

" Morning Star," May 12, 1865.

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DESPATCHES FROM THE GOVERNOR OF NEW

5. That, at least in some of the communications made to the Press regarding me, the General interfered directly, will be shown from the enclosed extract from an Auckland newspaper of the 14th August last. In this case an officer of his staff was the means of communication employed, and the information he furnished regarding me was clearly untrue and injurious. 6. In another Despatch to you I forwarded a copy of a most offensive letter in relation to myself which Sir D. Cameron published in his oWn name in the Colony of Victoria, which was so published as to go home by the same mail as Sir D. Cameron, without giving me any opportunity of reply. 7. All this I have submitted to in silence. I neither provoked it, nor defended myself against it by any recourse to the Press. All editors of newspapers in this Colony and elsewhere will testify for me that I have never, either directly or intlirectly, taken steps to have anything inserted in a newspaper, even in my own defence. 8. On the other hand, persons who were daily attacking me in the papers were living at General Cameron's Head Quarters as special correspondents, rationed and in various ways assisted at the public expense. The consideration with which they were treated by the General, and their opportunities for obtaining information, necessarily imparted an importance and probable authenticity to their statements, adverse to myself, which were most injurious to me. No necessity existed for public funds being expended in rationing or aiding in any way these persons. No other Officer in command of the Porces in New Zealand has ever done so, at least to my knowledge, and I have never done it myself. The power of doing this exercises a most injurious influence on the Public Service. It has been used to embarrass and thwart me ; and I earnestly recommend that the War Department in reducing its expenditure in this country should get rid of this unnecessary and mischievous item. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Sess. Papers 18G5. A. No. sa. p. 8.

Enclosure 1 in No. 14. Extract from the " Morning Star," of the 12th of May, 1865. The following is an extract of a letter from an Officer serving in New Zealand: — " Head Quarters, 4th February, 1865. " Here we are in the field again. Every one is heartily sick of it, from the General, downwards. How long are the people at home going to allow this to go on ? If they depend on the Governor, they are placing confidence in a broken reed indeed ; for it is apparent to every one here that he is seeking popularity among the Colonists by retaining the Troops, and will not allow a single man to go out of the island, unless he is ordered unconditionally and unreservedly to do so. " So long as he has ten regiments at his entire disposal, he is a great man ; but directly he allows them to go, he is shorn of all his splendour and greatness, and sinks down to the comparatively insignificant level of a constitutional Governor, with all power lodged in the hands of his Eesponsible Ministers, and he knows this, and feels it. There was no earthly reason why three or four regiments should not go home this and the next month. The Waikato frontier was securely established; the Military Settlers placed on their lands. The Natives, at a large meeting they held, almost unanimously declared for peace, and agreed not to meddle with us unless we did with them. The Tauranga Natives, after a short and unsatisfactory trial of their new religion, had returned to their lands, and settled down quietly in the neighbourhood of tho Europeans. At Taranaki the Natives, after taking and occupying all the positions of strength in the neighbourhood, were coming in every day, and giving themselves up — many of them being among the list of ' murderers.' Everything looked as peaceable and as promising as could well be imagined, when the Governor, seeing, I suppose, that unless he kept the Troops employed he would be unable to retain them in the Colony, suddenly directs the General to commence operations down here, working in the direction of Taranaki, the ostensible reason being to occupy a block of land we had purchased (!) from them (the Waitotara) and through which they declined to allow us to make a road. Now the real facts of this so-called purchase are these, and I suppose the English people will hardly credit it. Talk of the Waitara question! why most people believe even now that that was a fair and legal purchase ; but this they cannot defend on any one point, except the necessity of obtaining land for the Europeans somehow. The Superintendent of the Province of Wellington, Dr. Featherston, agreed to purchase this block some time ago from certain Natives, and paid them an instalment of £500. When the time came for concluding the bargain and paying the balance due to them, the Natives wanted one particular piece (where their fighting pa now is) to be reserved for them. This Dr. Featherston would not agree to, whereupon the owners tendered back the £500, and said they would not sell at all. This Dr. Featherston refused to take, and got some other Natives, who had not the smallest title to tho land, to take the balance and sign a paper in receipt thereof, saying they had sold us tho whole block. The lawful owners naturally enough resented this, and this is what we are here for, to eject the lawful owners from the land they did not wish to sell; and for this England is spilling her best blood! The General formally pro-

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tested before he left Auckland, but without success, against this most iniquitous proceeding. Tho ouly man here (of position, I mean) who sincerely and conscientiously has Imperial interests at heart is the General. The Governor lives in his Island of Kawau, a great man, with ten British Eegiments at his disposal, leaving everything to his Ministers, and never giving a single instruction to the General, unless proceeding in the first instance from his Eesponsible Advisers! And thero is no lack of instructions from them, as you may imagine; and so long as matters remain in their present state, you may depend on it tho war will be kept going, on one pretext or another. " As for their paying £40 per annum for every man of" the army here, that is absurd, and they know it too, and ridicule the idea accordingly. They are heavily in debt, and have not the moans of paying their own small expenses, much less paying for all of us. They will not pay a sixpence, and have not the smallest idea of doing it."

Enclosure 2 in No. 14. Extract from the " Morning Star," of the 13th May, 1865. "We published yesterday a remarkable letter from a distinguished officer who is serving with the army in New Zealand. " We are in a position to vouch for the genuineness of the communication, and the high character of tho writer."

Enclosure 3 in No. 14. Extract from an Auckland Newspaper, of the 14th of August, 1865. " The night before the General left Auckland, when he forwarded to us the letter we published on the Ist instant, denying that any orders of his had precluded the Officer commanding the troops in tho Whanganui District from assisting the Governor, the gentleman, one of the General's Staff, who brought us the letter told us that Sir Duncan would, had he had time to have done so, have refuted other insinuations thrown out against him by His Excellency—amongst them the charge that he had so long neglected to take the Weraroa Pa, the cause of his doing so being the express orders of His Excellency."

No. 15. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 161.) Government House, Wellington, Sir,— 14th December, 1865. In my Despatch No. 158, of the 12th instant, I enclosed you a copy of a letter wliich had been published in the English newspapers, and which it was stated —and, clearly, truly—had been written by a distinguished officer from General Cameron's Head Quarters upon the 4th February last. 2. I am anxious to contradict some of the untruths contained in that letter, which, coming from so high an authority, may, I fear, unjustly prejudice many persons against me. 3. It is stated that: " The Governor lives in his Island of Kawau, a great " man, with ten British regiments at his disposal, leaving everything to his " Ministers, and never giving a single instruction to the General, unless proceeding " in the first instance from his Responsible Advisers." 4. In the year 1864 I passed either thirty-five or thirty-seven days in the Island of Kawau. The escape of the prisoners from that place compelled me to be there for part of that time. 5. In the year 1865 I have passed twenty-one days at Kawau, the only rest I have had. 6. The instances in which my Ministers will give me any advice as to the instructions I should give to the General are very few. 7. The statement that the troops were sent to the country between Taranaki and Whanganui " to eject the lawful owners from the land they did not wish to " sell, and that for this England is spilling her best blood," accords with similar statements made by General Cameron on the same subject to the Secretary of State for War. These statements are, however, not only wholly contrary to fact, but are made with the evident object of injuring the Government of this country, its inhabitants, and myself with Her Majesty's Government and the British public. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

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No. 16. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the ' Right Hon. Edward Cardwell, M.P. (No. 162.) Government House, Wellington, Sir, — 14th December, 1865. In your Despatch No. 78, of the 25th of September last, which I had the honor to receive on the Bth instant, the following passage occurs, the intention of which clearly is to cast a censure upon me, which I am supposed to have deservedly merited: —" If, as soon as you knew that in the opinion of the " Officer commanding the troops your measures respecting the confiscation of " land would render the early withdrawal of any portion of the troops impossible, " you had acted upon this instruction, your opinions might have been sent home " several months ago, with those of General Cameron, and with your report upon " his observations." * * * * 2. This censure follows so evidently as a corollary from Sir D. Cameron's Despatch to Lord de Grey, of the 7th of January last (Parliamentary papers 6th April, 1865), that that Despatch must directly or indirectly have influenced the opinions on which originated the censure pronounced upon me. 3. In that Despatch General Cameron states as follows : —"I herewith " forward for your Lordship's information a copy of a Proclamation issued on the " 17th ultimo, by His Excellency the Governor, by the advice of his Colonial " Ministers, in which it is announced to the Natives that the whole of the " territory from which they have been expelled in the Waikato is confiscated, and " that such land as the Governor may think fit to confiscate in the districts of " Taranaki and Whanganui will be taken from them. " These measures will, in my opinion, render the early withdrawal of any of " the troops from this Colony impossible, as the extensive districts which have " been confiscated, and which it is proposed to confiscate, cannot be occupied and " defended by a smaller force than that which is now stationed in the Colony, " until either peace is made with the Natives or a population can be introduced " into those districts capable of taking part in their defence. I have considered " it my duty to communicate this opinion to Sir George Grey." 4. In order that you may understand the matter, I beg to make the following statement : —Upon the 16th December, General Cameron traced, for my Responsible Advisers, lines upon a map showing all the territory in the Northern part of the Northern Island of New Zealand which he thought " might fairly be " considered as conquered territory." Upon this map he wrote, " I consider that " all the rebel land included within the blue line, and to the North of it, may " fairly be considered as conquered territory, except that I think the Southern " boundary might be more correctly represented by a straight line from Pukekura "to Orakau, and from thence to the nearest point on the Punui River. (Signed) _ D. A. Cameron. Auckland, 16th December, 1864." 5. It would have been very difficult for me, after the General in command of the Eorces had thus authoritatively given his opinion to my Responsible Advisers as to what might fairly be regarded as conquered territory, to have refrained from adopting it. I think that, looking to the state of public opinion in this country at the time, and my whole position here at that moment, that General Cameron may fairly be said by this act on his part to have rendered the issue of mv Proclamation of the 17th December a necessity from Avhich I could not well escape. 6. How, then, General Cameron's measures (at least quite as much as mine) of what is called confiscation, could have been made a matter of complaint to the Secretary of State in the General's Despatch of the 7th January, I cannot understand; nor why, after what had taken place, I should have been left in ignorance that such a Despatch had been written. 7. You will observe that General Cameron, in his indorsement on the map, dated 16th December, named two boundaries of the territory which he regarded as conquered, one of which contained much more land than the other. You will also observe that in my proclamation of the 17th December, I named that one of

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the two boundaries, which contained the least land; that furthermore, the lands of all Natives who had adhered to the Queen were assured to them, and that even those Natives who had been in rebellion were assured that portions of their lands would be returned to themselves and their families. 8. General Cameron's semi-official letter to me of the sth January, of which he sent a copy to Earl de Grey on the 7th, I regarded as having been petulantly Avritten ; with my knowledge of what had taken place here this cannot be wondered at. I thought that my letter to him of the 7th January, sent home at the same time to Earl de Grey, which informed General Cameron that the Colonial Ministers would raise a Colonial Eorce, and would, as soon as the state of the country admitted, dispense with the services of the troops, and undertake their own defence, had quite answered the questions he had raised in that semi-official letter. Certainly this arrangement on the part of the Colonial Ministers quite satisfied my own mind. 9. I trust this explanation will satisfy you that the measures of confiscation you have alluded to were General Cameron's, at least as much as mine, and that I could have had no idea that such a difference of opinion existed between us on this subject, as it was necessary for me to bring under your review. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

No. 17. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 165.) Government House, Wellington, Sir, — 30th December, 1865. I have the honor to transmit for your information the copy of a Report which has been received by the Government of an interview held with the Pai Marire Natives of the Waikato District upon the 13th instant, at which you will see that they distinctly stated that they had no intention of harrassing or molesting the Europeans in that district; that they were totally unarmed, and that if Europeans came to then* settlements they would not be molested. 2. These statements on their part, viewed in connection with the letters from their Chief William Thompson, which I transmitted in my Despatch No. 154, of the sth instant, satisfy me that their present intentions are peaceable. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Mr. Searancke, 13th Dec, 1865,

Enclosure in No. 17. Mr. Searancke, E.M., to Mr. Mackat. Sir, — Ngaruawahia, 13th December, 1865. I have the honor to inform you for your information that a large number of Pai Marire Natives from the Piako, principally of the Ngatihaua, Ngatiruru, and Ngatikoura Tribes, assembled yesterday at Hukanui, at the head of the Komokorau Creek, E.S.E. from Ngaruawahia, about ten miles distant, to the number of two hundred men, women, and children, and sent a messenger to Hohaia, at Hopuhopu, to pay them a visit there. Hohaia at once informed me of it, and I instructed him to proceed there at once and ascertain their intentions, which, if of a friendly character, I desired him to invite the leading men of the party to Ngaruawahia, or that I would proceed there on the following day (this day). Hohaia returned from his visit this morning, and reports to me as follows: —" On my " arriving near tho place where the Hau Haus were encamped they sent mo word that I must not be " frightened, but I must be received with honors, dancing round me and my little party in a circle. " This I declined, saying if they persisted in this I should at once go back. I then proceeded on, and "we all had a great crying over one another. The principal Chiefs were Eeihana, Iroia, and Henare ; " the first is of the Ngatihaua Tribe, and equal in rank to Wiremu Tamehana. All the speeches on " their side in answer to mine were of one tendency: to express their regard and love to me, and to say " good-bye to the lands of the Waikato. They then all stood up in a circle, men, women, and children, " and went through their form of prayer, uttering a gibberish which I could not understand, one arm " stretched upwards. In the evening we again assembled, and I made a long speech, explained the " Governor's Peace Proclamation to them, asked them again what their intentions were, and invited " them to come on with me to Hopuhopu, that we were all anxious for peace alike. To all this ■' Eeihana and Iroia answered that they had no intention of harming or disturbing the Europeans ; 6

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" that if Europeans came to their settlements they would not be molested ; that they were totally " unarmed ; eels and tawharas being the cause of their coming there to that spot; that they were badly " off for food, as the late flood had washed away nearly all their potatoes. They declined saying anything " about peace or war, saying that with Wi Tamehana laid the decision; that whatever he said they " would do, but generally they did not wish to have any more fighting." Hohaia further informed me that they all looked gaunt and hungry, very dirty and ill-clothed, and completely worn out with their fanaticism, which is continued at short intervals both day and night. That they told him they had frequently seen the survey parties up the Mongawhara Creek, but had not disturbed them in any way in their work. On the whole, it appears to me that their wish is to re-establish friendly communications with the Natives in this district, with what ulterior object remains to be seen. They broke up the party this morning to return to the Piako at the same time that Hohaia started on his return here. I have, <fee, J. Mackay, Esq., Civil Commissioner, W. Searancke, Auckland. Eesident Magistrate, Central Waikato.

No. 18. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 1.) Government House, Wellington, Sir, — Ist January, 1866Adverting to the remarks contained in your Despatch No. 86, of the 26th of October last, upon the subject of advances made from the military chest for the rations and pay of the Colonial Eorces raised and organized in New Zealand, for the defence of the Colony against aggression, and for the preservation of public tranquillity, I have the honor to state that I think' the following circumstances require consideration in forming an opinion upon that subject:— 2. The system of advances did not originate with myself, but was in full operation when I arrived here, under the instructions contained in the Circular Despatch of the 22nd October, 1857 ; and the Colonial Treasury being unable to meet the expenditure authorized by that Despatch, the system which it sanctioned has necessarily been continued. 3. The General commanding the Eorces here having refused to furnish the Governor here with copies of his Despatches relating to military subjects, and having kept back from him the estimates of military expenditure which the Governor was authorized to consider and remark upon, the whole control of the military expenditure, either Imperial or Colonial, was virtually taken out of the hands of the Governor, for the latter class of expenditure necessarily depended on and kept pace with the former one. 4. I believe that at no time daring the war did myself or my Responsible Advisers deem the great expenditure to which the Home Government or the Colony was put either necessary or desirable. I believe it was at all times our opinion that much more might be accomplished at a much less expense by means far more moderate and less costly. 5. It was, however, continually hoped that at length operations would be more energetically and successfully carried on, and in a less costly manner, and that then the war would come speedily to an end. 6. I was, from the causes before stated, necessarily ignorant of the nature and extent of the information afforded to Her Majesty's Government regarding the expenditure on military operations, and of the nature of their views and instructions in relation to the conduct of these operations, and the large expenditure which was being incurred. 7. What I fear, however, you have been left in ignorance of, is the very large and costly aid which has been afforded by the Colony to the General commanding the Eorces for the suppression of rebellion in this country. 8. The Colony not only kept in the field a force on some occasions, I believe, exceeding nine thousand men, but in its desire cordially to co-operate in the suppression of the rebellion, has paid nearly a quarter of a million in providing transport for Her Majesty's regular forces, in providing soldiers, arms, and accoutrements, and extra pay for portions of those forces, in paying interpreters

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and guides for officers of Her Majesty's regular forces, and in other similar charges, which the Colony was not by instructions from Her Majesty's Government required to take upon itself. 9. All advances from the military chest have also been made with a view of doing away with Imperial expenditure in this country. The Colonial Eorces paid or rationed by such advances have taken the place of the regular troops, thus effecting a large saving to Great Britain ; and in addition to this, the Colony has recently in as far as possible undertaken all operations at its own cost. The entire campaign on the East Coast has been conducted by the Colonial Eorces, and has been paid for from Colonial funds. This could not have been done had not its forces in other dhections been paid or rationed by means of advances made from the military chest. 10. The Colony was so impoverished by the exertions it had made to carry on the war, its means were so exhausted, and it found such difficulty in raising funds, that it was only by the aid of the advances made it could have taken upon itself charges which have relieved Great Britain from so large a past and prospective expenditure, and I feel sure the more carefully the matter is considered the more fully it will appear that the regulations under which the Treasury sanctioned the issue of such advances have worked well, and have resulted in a considerable saving to the British Treasury. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

- ' Enclosure in No. 18. Statement op Amounts advanced from Colonial Treasury on account of Imperial Troops and Services. Flying column—Officers and men belonging to Her Majesty's Imperial £ Troops, but receiving pay from the Colonial Government ... 4,320 Eoyal Artillery as a mounted troop —Cost of saddles, arms, and accoutrements provided by the Colonial Government ... ... 1,500 Pay of ditto ... ... ... ... ... ... 2,440 Interpreters and guides to officers commanding Her Majesty's Forces ... 4,000 Pay of men belonging to the Colonial Forces, but attached to the Imperial Transport Corps ... ... ... ... ... 81,880 Amount paid to Imperial Troops as working pay, cost of tools, &c, for ditto, and cost of services performed at the instance of the LieutenantGeneral commanding ... ... ... ... 37,032 Cost of steamers for sea and river service ... ... ... 48,500 Working expenses for ditto, 1863, 1864, and 1865 ... ... 66,600 Cost of working coal mines on AVaikato to provide coals for ditto, 1864-5 6,000 Cost of working plant at Waikato Heads for dockyard ... ... 5,000 Subsidy paid by Colonial Government to Her Majesty's Ships of War on the station ... ... ... ... ... 9,000 £266,272 Colonial Defence Office, J. Holt, Wellington, 4th January, 1866. Under Secretary Colonial Defence.

No. 19. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 2.) Government House, Wellington, Sir, —• Ist January, 1866. I beg to thank you for forwarding to me General Cameron's Despatch of the 4th September, 1865, to the Secretary of State for War, complaining of my having made misrepresentations. Some obscurity rested on the matter from General Cameron having omitted to send to each of the persons interested in this question some portions of the correspondence which were necessary to a clear understanding of the matter. Eor instance, he transmitted to me a copy of a reply he had received from Brigadier-General Waddy, but kept back from me his own

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letter which drew forth that reply; and when he transmitted these two letters to the Secretary of State for War with his complaints on the matter, he apparently did not at the same time send a copy of the letter which he wrote to me from Melbourne in relation to this correspondence. These omissions are, however, now supplied. 2. I return General Cameron's letter, with marginal notes attached to it. I am sure these will satisfy yourself and the Secretary of State for War that I have made no misrepresentations. 3. As I am at so great a distance from home, and have no opportunity of defending myself until many months have elapsed after attacks have been made upon me, I beg to be allowed to offer the following general remarks; — 4. I think that all the accusations made by General Cameron and those acting with him, such as those contained in the letter I now return, should be received with great caution. 5. It was my belief that an altogether faulty system of warfare had been pursued in this country, which had unnecessarily entailed a great loss of life, a vast amount of human suffering, an enormous and useless expenditure and waste of materials upon Great Britain and this Colony. I thought it was my duty under such circumstances to give a practical proof that more important results than had ever hitherto been attained, could be gained with a much smaller sacrifice of life, with a much smaller force, and at a very trifling cost. I think I succeeded in doing so; and all that has since taken place in this country has shown the soundness of my conclusions. No other principle has since been acted upon. 6. I feared after the large loss of life which had been incurred here, and after such vast sums had been spent, I could only succeed in my object by incurring bitter animosity, and persecutions of many kinds. I thought it my duty, however, to encounter this risk, in addition to the others I had to meet, and I shall bear the evils resulting from it with equanimity and cheerfulness. I know that I have done my duty, and that knowledge will sustain me under any attacks that may be made upon me, or under any censures or inconveniences which Her Majesty's Government may from want of information subject me to. 7. In considering generally the question of the Weraroa Pa, I trust you will remember that General Cameron considered it in January, 1865, when it was far from complete, so formidable a work that he could not attack it with less than 2000 men, and then only with great loss, and at the end of May he held the same views, believing that our loss in such an operation would be much heavier than that of the Natives. 8. General Cameron has put up with his Despatch a letter from General Waddy, to show that although the Weraroa Pa was so strongly fortified a place, the statement made by the Native Chief Pehimana that there were 600 men in it was an exaggeration, and that it was generally thought there were not more than 150 or 200 men there at the time of the attack on it. 9. To this I answer that Pehimana is the same man that wrote to tell General Cameron when he was near it that there were 1000 men in the place. I believe the exaggeration was nearly equal in each instance, but at the time the statement of 1000 men was made the works of the place were not nearly completed. 10. With regard to the number of men in the pa that forms no fair criterion of what was done; the place and 57 prisoners were taken with their arms, by a very small force without artillery; the rest of the enemy saved themselves by timely flight. To New Zealanders to have their warriors taken captive is a more disgraceful defeat than if they are slain. This was done with no loss on our side. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Enclosures,

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Enclosure in No. 19. Copt of a Despatch from Lieut.-General Sir D. A. Cameron, to the Eight Hon. the Secretary or State for AVar, with Sir George Gret's remarks thereon. Sib D. Cameeon. Sib George Grex. On board P. and O. Steamer " Yeddo," 4th September, 1865. My Lord, —I have the honor to forward to your Lordship a copy of a letter, and its enclosure,* which I received before I left New Zealand, from Brigadier-General AVaddy, commanding at AVanganui, reporting the evacuation of the Weraroa Pa by the rebels on the 21st July ' last. 2. A Despatch from Sir George Grey to the Secretary of State for the Colonies, reporting the operation which led to the evacuation of the pa, and a Speech made by His Excellency at the opening of the General Assembly, on the 26th July, were published before I left the Colony, and will reach Her Majesty's Government by this mail. 3. I beg to draw your Lordship's attention to them, and to the following remarks which I have to-make in answer to the complaints which they contain— 4. Ist, Of the delay in attacking the Weraroa Brigadier-General AVaddy, in his letter of the Pa ; and 2nd, of orders stated to have been issued 19th of July, 1865, stated, that from the instrucby me to Brigadier-General Waddy, Lieut.- tions under which he was acting from Lieut.Colonel Trevor, and the officers and men under General Cameron, he could only direct an their command, precluding them from taking any immediate attack on the Weraroa Pa when active part in the operations against the pa. Lieut.-General Cameron directed that such an attack should be made, and that he could not undertake this operation against the pa unless he received the orders of the Lieut.-General Commanding the Forces to do so. 5. I would begin by observing that the most The enclosed extract from Despatch No. 82, of ssrious delay which has occurred was caused by the 6th of July, 1865, will show that such was the postponement of hostilities until January, by not the case. (See Appendix A.) which three or four of the most favorable months for operations in the field were lost; and for that delay Sir George Grey alone is responsible. 6. In my Despatch to your Lordship of Feb- This Despatch of the 4th February last was ruary last, I explained to your Lordship my never communicated to me. I had no idea of reasons for moving the column under Brigadier- what were the objects contemplated by moving General Waddy's immediate command to the the column under General Waddy to the Patea. Patea without attp.cking the AYeraron Pa; and in The maintaining the objects of this movprnPTit a my Despatch of the following month I acquainted secret from the Governor of the country, who had your Lordship with the instructions I had received so largely to aid in the operations, shows the from Sir George Grey to occupy the coast between system which was pursued. Taranaki and Wanganui. 7. Of these instructions, which defeated the General Cameron never stated the objects for object for which I moved General Waddy's which he had moved General AVaddy's column to column to the Patea, and which for a long time the Patea, and never stated that any instructions prevented any operations being undertaken which. I had given had defeated those objects. Ido not bad the capture of the Weraroa Pa for their think any instructions I gave could have done so. object, Sir George Grey makes no mention in his They are contained in my letters of the 13th of Speech. They were given, I presume, with the March and 22nd of March, which are enclosed, concurrence, if not by the advice of the Colonial (See Appendix B.) Ministers, who, as well as Sir George Grey, were This quite mis-states the instructions I issued aware of my objections to the occupation of so with the knowledge and assent of my Eesponsible large a tract of country by Her Majesty's troops. Advisers. It will bo seen above that all General Cameron was asked to do, was, —that as he could not attack the Weraroa Pa, as it was so formidable a work " He should continue his advance as far as the means at his disposal would admit." The extent of the tract of country was thus left entirely to his own discretion. 8. A chain of posts having, in pursuance of these instructions, been established, which I was requested to occupy during the winter, Sir George Grey proposed to me in the month of May that operations should be commenced against * General Waddy to Assistant Military Secretary, 25th July. Governor to General Waddy, 23rd July. 7

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Sir D. Cameron. Sir George Grey. the pa, and he gave me permission to abandon temporarily any of the posts on the coast which I might think necessary to enable me to assemble a force sufficient for the purpose. 9. In reply to this proposal, I considered it my The enclosed extracts from Memoranda adduty to represent, that the rainy season having dressed to me by the Colonial Ministers will show set in, the operations of a regular attack would how different the views of the last Government be extremely harassing to the troops, and from are from General Cameron's on this subject-, the impossibility of preventing the escape of the and how entirely they accorded with my own. garrison, the result would be only the capture of Experience proved that we were right. (See an empty pa. Intelligence, moreover, had been Appendix C.) received through the friendly Natives related to those in the pa, that a large party were for giving it up, and I felt convinced that if a post were established near enough to observe the pa, some opportunity would occur before long of obtaining possession of it, without assembling a large force for a formal attack, which at that time of the year it was desirable to avoid. 10. I however informed the Governor that I General Cameron's repugnance to attack the would comply with and carry out to the best of place had been so great, his exjircssions regarding my ability any instructions which, after that its formidable nature and the danger of the expression of my opinion, he might think lit to undertaking had been so strong, his statements give me for undertaking the siege of the pa. regarding the winter season had been so decided, and his losses before other places of very inferior strength so large, that I was afraid to direct him to attack the place after what he had said. I did not however take this view on the 19th of May. I wrote to General Cameron, and told him my opinioTi was that leaving the enemy in the Weraroa Pa was producing very bad effects, and told him that it was my opinion that a force should be collected with the least practicable delay to take the AVeraroa Pa. 11. Sir George Grey having declined to give I have pointed out in a previous letter that the me instructions, I directed Brigadier-General post at Nukumaru was in every way unfit for Waddy to construct a post at Nukumaru, and such a purpose; in fact, the object named could gave him a discretionary power to attack the pa not have been attained from it. if he saw a favorable opportunity of taking it by surprise or sudden attack. 12. Brigadier-General AVaddy was aware of my objections to a formal siege of the pa at that time ' of the year, and concurred in them. 13. After the establishment of the post at I could not have acquainted General Cameron Nukumaru, all the reports I received from with my intention of going to Wanganui; he had Brigadier-General Waddy confirmed me in the quitted the then seat of war, was not at the then opinion that the Natives would surrender the pa. seat of Government, and was distant from me in On the 17th July the Governor arrived in front point of time from twelve to fifteen days. But of the pa, and held a conference with the rebels. I had, in truth, no desire to see him there; my (Had he acquainted me with his intention of object was to try to have a new system of going to Wanganui, I might have joined him operations inaugurated opposed to his, in which, there.) On the following day the two principal he never could have cordially aided me. Chiefs gave themselves up to the Governor ; I cannot believe that General AVaddy, after the another left the pa with his followers, and the manner he had seen mc turned away from the pa whole professed a desire for peace. On the 20th on the 17th, and after the rebel Natives had July, General A\ raddy wrote from AVanganui — declared upon the 18th that they would only " Mr. Parris and Captain McDonnell, who know make peace upon my acknowledging the Nntivo the Natives well, firmly believe that the pa will King, could have seriously believed that the pa be given up." would be given up. Certainly, after the 18th, Mr. Parris never led him to believe that he thought that such would be the case. 11. Sir George Grey, however, thinking that I did not break oil' negotiations. I was turned he had reason to doubt their sincerity, broke off away from the place, the negotiation, and having applied to General Waddy for reinforcements,sent the Forest Eangers and friendly Natives to occupy the Karaka Heights, a point about one thousand yards from the pa, and on the same bank of the river. 15. The Natives then evacuated the pa without This is not correct. A reinforcement of 57 firing a shot. men, with their Chief, was, according to the Native custom, bivouacked outside the pa, in its rear, so as to be removed from under fire, and to make no call on the provisions of the pa, yet ready to rush in and aid in its defence the moment firing

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Sir D. Cameron. Sir George Gbey. commenced. AA'hen this reinforcement was surrounded by our men they opened fire upon them, but finding their position hopeless and resistance useless, laid down their arms. This event exercised a powerful influence on those in the pa. 16. As their retreat was at the time perfectly We had captured the only reinforcement they open, the pa well provisioned, and as the party on had near them. AYe had taken all the supplies the Karaka Heights could not prevent the entrance they had within many miles of them, and were of supplies and reinforcements into it from the using them. The pa was not well provisioned, opposite bank of the river, it may be inferred that and they must have expected every moment that they had no serious intention of defending the the only line of escape left open to them (that by work. which they did effect their retreat) would have been occupied. After that, only stragglers could have stolen through in the night. 17. Looking at the result, I think there is no The remarks on paragraph 9, and Memoranda of reason to regret that the pa was not attacked at Ministers enclosed, (see Appendix C.) will show an earlier period. how erroneous this view is. 18. Had I done so, I have little doubt that I I am satisfied the pa could have been taken in should have lost many officers and men without January with very trifling loss, and that many of gaining any greater advantage than has been the evils which have since fallen on the country obtained by its evacuation. might have been avoided. 19. Nothing had occurred when I left the lam convinced that no person well acquainted Colony to warrant the Governor's statement that with the state of the country will agree with the the delay had involved consequences fraught with statements made by General Cameron in paradisaster, and led to fresh outbreaks in other parts graphs Nos. 19, 20, and 21. of the Colony. 20. The fact is, that, except on the East Coast, The enclosed Memorandum from my Eesponsible the Natives had for many months remained on Advisers (see Appendix D.) will show that the the defensive, and all the hostilities that had taken rebels on the East Coast very largely out-num-place in or near any of our settlements had been bered the friendly Natives; that we have a large provoked by our invasion or occupation of their and important settlement on the East Coast; and territory. that an absolute necessity existed for our inter--21. In regard to the East Coast, I had received ference. no information for several months from the Governor or the Colonial Ministers about the state of that part of the Colony ; but as we have no settlements where the disturbances have taken place, and the loyal Natives greatly outnumber the rebels, there would appear to be no necessity for our interference. 22. I heard, however, that the Colonial Government had supplied the loyal Natives on several occasions with arms and ammunition, and had sent a detachment of A Tolunteers to co-operate with them ; and it would appear from Colonel Greer's report of the murder of Mr. Fulloon and two sailors on the East Coast, that the Government had been endeavouring to raise the loyal Natives against the rebels by the promise of sending troops to their assistance. 23. In regard to this murder and the two Mr. Fulloon was a half-caste New Zealander ; skirmishes at Taranaki, of which your Lordship his mother was a native of the part of the coast will receive reports by the present mail, and in he went to visit; he was related to several of the which you will perhaps consider that some valu- leading families there, and possessed much able lives have been lost without any useful object, influence. I would observe that large tracts of country The enclosed papers (see Appendix E.) will having become confiscated and occupied by us, show that the Government did not send Mr. and whole tribes of Natives expelled from their Fulloon on a mission to AVhakatane—that they lands, it is not surprising that some acts of had ordered him to proceed direct from Auckatrocity should be committed by them for the land to Wellington, and that at his own request sake of revenge when the Government give them he was allowed to go by way of the East Coast, tho opportunity by sending their agents on such for the purpose, as he expressed it. of checking missions as that of Mr. Fulloon's ; and that the the spread, and, if possible, of suppressing the Pai Governor having encouraged the officer in com- Marire superstition, and also of observing the niand at Taranaki to act independently of the Opotiki Natives. Officer Commanding the Troops, and to undertake Colonel Warro has answered this statement in any operations he may think proper without refer- the enclosed paper. (See Appendix F.) ence to him, the Governor must be considered responsible for any misfortunes that may occur in that Province. 24. With regard to Sir George Grey's com- General AYaddy's orders have never yet been plaint that General Waddy, Lieut.-Colonel Trevor, communicated to me. I believe, from what I and the officers and men under his command, had heard, that it would be found that General

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Sir D. Cameron. Sib George Grey. orders which precluded them from taking any Cameron had written to say that he intended to active part in the operations against the pa, I beg attack the place himself in the spring,—that preto forward copies of a correspondence between parations were to be made for that purpose, —and General AVaddy and myself on the subject, from that they were afraid to interfere to defeat this which your Lordship will see how little foundation intention. General Waddy distinctly stated in there was for such statement. his first letter, of the 19th of July, that he would not direct an attack on the pa until General Cameron directed that such an attack should be made. 25. It appears, on the contrary, from General On the 19th Brigadier-General Waddy informed AVaddy's letter, that whilst that officer was pre- me that he could not direct an immediate attack pared to employ the troops under his command in on the AYereroa Pa unless he received the orders any way that could conduce to the capture of the of General Cameron to do so, who was at that pa, Sir George Grey displayed very little anxiety date distant in point of time from fourteen to for his co-operation, or for the arrival of the rein- fifteen days from Wanganui. Brigadier-General forcements he had requested him to send from AVaddy however undertook upon the same day, as AVanganui. a considerable time might elapse before he could 26. According to the Governor's Despatch, it receive orders from General Cameron, to establish was at two o'clock in the morning of the 20th that without delay a post of four hundred men at a he determined to commence operations against point I indicated, which post would serve at once the pa at once, without waiting for reinforce- as a moral support for the Local Forces and ments; and General AVaddy being at that time Natives, and answer the purposes of a post of at AVanganui, distant only twenty miles from the observation. pa, Sir George Grey might easily have communi- Brigadier-General AVaddy started into Wancated with him by mounted orderly in two or ganui to carry this arrangement out. I underthree hours, and the reinforcements might have stood distinctly that the troops were to march joined him on the afternoon of the 20th, or at from that place on the 20th of July, and were to latest on the morning of the 21st, before the pa arrive at the point arranged upon the morning of was evacuated. the 21st, and that Brigadier-General Waddy was 27. Sir G. Grey, however, did not think it to arrive with them. There was no change in my necessary to acquaint General AVaddy with the plans. I had determined on the 19th to attack change he had made in his plans, or to communi- the pa, and after inspecting the ground, I, during cate with him at all until after the evacuation of the course of the night of the 19th (that is, by the pa, but left him under the impression that 2 a.m. on the 20th), had decided on all the details nothing would be attempted against the pa until of the attack. All these were based on the suphe arrived with the guns and reinforcements from position that, as had been promised, the troops AVanganui. would march from Wanganui upon the 20th, and arrive on the 21st. The 20th however proved a rainy day, the order for the march of the troops was countermanded by Brigadier-General Waddy, and their march was delayed until the 21st from the rain. This change was not communicated to me, and I passed all the 21st in a state of great anxiety, expecting the momentary arrival of Brigadier-General Waddy and the reinforcements ; and I did not know until the night of the 21st or the morning of the 22nd, after the Natives had fled from the pa, the reason why the reinforcements had not arrived on the morning of the 21st. 28. And this is the more extraordinary, as, if The enclosed memorandum from Mr. Parris (see the position of Captain Brassey at Pipiriki was as Appendix G.) will show that a strong reinforcecritical, and the necessity of marching to his relief ™ent was rapidly moving up to strengthen the pa, as urgent as is represented in the Despatch, and whilst Captain Brassey's own letters, and those of if it was true that, had a larger force been at other persons, published with the original papers, the disposal of the Governor, he would have been show how critical was his position, and how enabled to occupy a second point below the pa, great his need. See especially in his own letter and thus to cut off the retreat of the Natives, of the 21st July, " Simus sine rebus belli satis. he had the strongest reason for wishing that the My cry, if I could make it heard, would be the reinforcements should join him with as little delay M. M." It seems almost cruel, when so brave as possible. a mail thus expresses himself, to say he was in no 29. In point of fact, however, no risk was in- danger, curred, nor any advantage lost, by the non-arrival of the reinforcements from AVanganui. Captain Brassey's post was strong enough to defy any force the rebels could bring against it, and some My opinion is quite different from General days afterwards when the communication with Cameron's on these points. I was at the place, him was re-opened, he and his detachment were which he was not. I had a good Native force and found perfectly safe. Nor would the occupation trained men of the Colonial Forces with me. of the point referred to by Sir George Grey have Many years' experience qualifies me to form a enabled him to cut off the retreat of the garrison, judgment on such subjects, aud lam sure General whose escape it would have been impossible to Cameron is wrong in what he here says. have prevented by night, even if he had invested G. Grey.

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Sir D. Cameron. the pa on the right as well as on the left bank of the river, for which his force was not sufficient. 30. Had the pa been defended, it would have been necessary to have attacked it in the manner stated in General AVaddy's letter, or, what is more probable, by the sap. 31. I regret that the misrepresentations of the Governor have compelled me to trouble your Lordship with all these details, but I hope, in justice to myself, your Lordship will allow this letter to be published at the same time with the Governor's Despatch and Speech to the General Assembly. I have, &c, D. A. Cameron, Lieut.-General. To the Secretary of State for AVar. Sub-Enclosure 1 to Enclosure in No. 19. Brigadier-General AVaddy to the Assistant Military Secretary. Sir,— Wanganui, 25th July, 1865. I have the honor to forward, for the information of the Lieut.-General Commanding the Forces, a letter to me from His Excellency the Governor, in which His Excellency expresses his thanks for the invaluable aid afforded him by the troops under my command, which I sent to assist the Colonial Forces and friendly Natives in operations against the AVeraroa Pa ; which operations resulted in the evacuation of this strongly fortified place by the rebel Maoris during the night of the 21st instant. One of the rebel Chiefs who surrendered on the 17th instant, stated there were 600 men in the pa, but it is generally thought there were not more than 150 or 200. His Excellency speaks highly of the energy and intelligence displayed by Lieut.-Colonel Trevor, 14th Eegiment, who commanded the troops in front of the pa. I have, &c, The Assistant Military Secretary, E. AVaddy, Auckland. Brigadier-General Commanding Field Force. Sub-Enclosure 2 to Enclosure in No. 19. Governor Sir G. Grey to Brigadier-General Waddy. Sir,— Wanganui, 23rd July, 1865. As I am about to embark this morning for AVellington, I cannot write to you at such length as I should wish ; but I cannot leave this place without expressing my thanks to you for the invaluable aid you afforded me by assisting me during the last few days, to the extent that your instructions allowed. The aid you thus gave me most materially conduced to the speedy capture of the pa, a point of the utmost importance to attain whilst Captain Brassey and his party were in such danger at Pipiriki. Lieut.-Colonel Trevor, of the 14th Eegiment, with a detachment of one hundred men of that regiment, first arrived on the ground on the morning of the 20th instant. Lieut.-Colonel Trevor, and the officers and men of the 14th, afforded every assistance in their power. Lieut.-Colonel Trevor was throughout in command of the troops. He acted with the greatest energy, and afforded on every occasion the most valuable advice and aid. On the morning of the 21st, a further detachment of the 14th (thirty men), under Captain Furneaux, and a detachment of fifty men of the 18th, under Major Eooke, arrived on the ground; the officers and men of which detachment also afforded every aid in their power. I have, &c, Brigadier-General Waddy, C.8., Commanding Field Force. G. Grey.

Sub-Enclosure 3 to Enclosure in No. 19. Lieutenant-General Cameron to Brigadier-General AVaddy. Sir, — Head Quarters, Auckland, Ist August, 1865. In his speech at the opening of the General Assembly, His Excellency Sir George Grey has stated that you and the officers and men under your command had received orders which precluded you from taking any active part in the operations against the AVeraroa Pa. This I have positively denied in a letter which I have addressed to the Governor. In my private letter to you of the 33rd June, I mentioned that I thought it would harass the troops unnecessarily to make a formal siege of the AVeraroa Pa by the sap before the month of September, an opinion in which you concurred, but, so far from prohibiting active operations of any other kind, one of the objects for which the post at Nukumaru was established, was, not to attack the pa with the troops occupying the post, as supposed by the Governor, but to enable you to observe the pa, and seize any favorable opportunity that might occur of making an attack upon it, for which troops could be quickly brought up from the nearest posts. 8

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The Governor had been made fully aware of my objection to a formal siege of the pa at that season of the year, and it is evident that the question he put to you in his letter of the 19th July was intended to draw from you the answer in the negative which you gave him. When afterwards, in compliance with the request contained in the Governor's second letter, you moved 400 men up to the pa, I should feel obliged by your informing me whether you gave Lieut.-Colonel Trevor orders which precluded him from taking any active part in the operations about to be undertaken, and whether there was any reason which would have prevented you, as the officer commanding Her Majesty's troops in the district, from taking command of the whole forces, Imperial and Colonial, and directing the operations, if you had thought proper, or if the Governor had expressed a desire that you should do so. It was not then the case of a formal siege of the pa by sap, nothing of the kind was in contemplation. The Governor and yourself had been close up to the palisading of the pa on the day previous with impunity ; the principal chiefs had surrendered, negotiations were going on, and there was little probability of serious resistance being made, as the result proved. I shall feel obliged by your forwarding your reply to me under cover to the officer commanding at Melbourne, in order that I may receive it on my way to England. I have, &c, D. A. Cameron, Lieut.-General. , Brigadier-General AVaddy, C.8., Commanding Field Forces, AVanganui.

Sub-Enclosure 4 to Enclosure in No. 19. Brigadier-General AVaddy to Lieut.-General Sir D. A. Cameron, K.C.B. Sir, — AVanganui, 7th August, 1865. I have the honor to acknowledge the receipt of your letter of the Ist instant, No. 258-65, and in reply I beg to inform you that on the 19th July last, when I was at Nukumaru, and directed Lieut.-Colonel Trevor, 14th Eegiment, to move to the camp in front of the Weraroa Pa, with 100 men, I did not give him any orders to refrain from taking an active part in the operations against the pa, which His Excellency the Governor had decided upon carrying on—in fact I did not think anything could be done till the 400 infantry and the guns and mortars were brought up. The 200 infantry from this got to the camp in the forenoon of 22nd July, the guns and mortars were at the AVaitotara Eedoubt, a few miles from the pa, and I was on the point of starting from this to ride out to the camp on that day, when the Governor arrived with the intelligence that the pa had been evacuated during the previous night, and that it had been occupied by the troops under Lieut.Colonel Trevor about daylight. On my arrival in the camp I should of course have assumed the command of all the troops there, and directed such operations as I might have thought proper against the pa, and I am under the firm conviction that the Governor told me he intended to leave as soon as I arrived in camp. Although I declined to invest the place, (which would have required a large force,) and to commence a regular siege with the Imperial troops (without your orders), I certainly never contemplated their remaining passive spectators of what might take place. AVhen I ordered up guns to batter down the palisading of the pa, it was my intention to have made a sudden rush upon it with a joint force of Imperial and Colonial troops and friendly Natives, when I could see the defences were sufficiently destroyed, and if I did not find there was too strong a force of rebels in it to render it rash orhazardous to attempt to take it in that way. The Imperial troops under Lieut.-Colonel Trevor did all that was required of them. They held a position in front of the pa while the Colonial troops and friendly Natives proceeded to occupy a position in rear of it, and Lieut.-Colonel Trevor was quite prepared to employ his 200 men of the 14th and 18th Eegiments, in any way he thought conducive to the speedy capture of the pa. I had told him in course of conversation at Nukumaru, that I had your permission to attempt to take the pa by a coup-de-main if I thought fit. I have, &c, E. AVaddy, Brigadier-General Commanding Forces. Lieut.-General Sir D. A. Cameron, X.C.8., Ac., &c, &c.

Appendix A. Extract from Despatch of Sir G. Grey to the Secretary of State for the Colonies, No. 82, 6th July, 1865. 4. In the second place Sir D. Cameron was perfectly aware that I did not postpone hostilities in the Taranaki country until after the meeting of the General Assembly, and that the delay in those operations was not unnecessary, and that it had nothing whatever to do with the question of who my Eesponsible Advisers might be. The question that I wished not to decide without the advice of a responsible Ministry was, what the extent of those operations should be, as the Colony would to a great extent be liable for the cost of those operations. I was anxious that their extent, and the precise object to be aimed at should be settled with the advice and concurrence of a responsible Ministry. But this question of acting under responsible advice was in no way connected with that of whether or not operations were to be undertaken between Taranaki and AVanganui, which had long previously openly been determined on ; or with the delay in September in carrying on those operations, which arose from a different cause. Sir D. Cameron knew that I had long previously determined that those operations should be undertaken ; that the first preparations for them began in August, 1864, or early in September, and that the interruption in them from that date to the 16th of December, arose from a great peril which suddenly and unexpectedly threatened Auckland. This lam fortunately able to show from Earl de Grey having been kind enough to send me a copy of the report of the Deputy

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Quartermaster-General in New Zealand from the-Bth of September to the 7th November, 1864, from which I extract the following statements : —■ " Head Quarters, Auckland, 7th November, 1864. " Immediately after the despatch of the last journal (7th September) a very unexpected occurrence took place —the escape (on 10th September) of the whole of the Maori prisoners from Kawau, which has had a very important bearing on the political aspects, and may possibly have a serious effect on the military operations of the war. " Happily as yet no disaster has resulted from the escape of the prisoners, but as they are still at largo, and have established themselves (though with professedly peaceable intentions) on the Omaha Mountain, where they have been joined by a few other Natives, it is still quite impossible to conjecture what the result will be. " It is however satisfactory that the Northern Natives have, as a rule, disowned any sympathies with the escaped prisoners. "The country between New Plymouth (Taranaki) and AVanganui was, at the date of my last report, the contemplated scene of the next operations to be undertaken. The escape of the prisoners, and the possible complications it might lead to in the North, would of course reduce the number of troops to be available for operations in the South, and might possibly, when the time for action came, forbid the removal of any troops whatever from-tho Province (Auckland). " Preparations for the intended move of troops to Wanganui and Taranaki were commenced in the way of Commissariat arrangements, and the embarkation of the first detachment of the Transport Corps, when further progress was ordered to be suspended. # # # # #.# # * • « " Now though the time favorable for active operations has arrived, none can be undertaken for a month ; but until the danger in the North has passed, the large number of troops at present at Otahuhu, near Auckland, though inactive, are in the most convenient position, and ready for any emergency that may arise." 5. I feel satisfied that the foregoing statements made by the Deputy Quartermaster-General from Head Quarters, must satisfy every one that Sir D. Cameron not only knew, at least in August, 1864, that I had determined that operations should be undertaken in the country between Taranaki and Wanganui, but that the movement of troops for that purpose was commenced before the 7th September, 1864, when the operations were interrupted by a serious danger which suddenly and unexpectedly threatened the Province of Auckland. 6. But in truth Sir D. Cameron's own letters also conclusively show that the delay of three months in the intended operations had nothing whatever to do with his not attacking the AVeraroa Pa. Many passages could be cited to prove this, but one will probably suffice taken from his letter to me of the 17th of March :— " On that occasion I explained to you why I had refrained from attacking the Weraroa Pa when I was at Nukumaru, viz., that the position was so formidable, and at the same time occupied in such strength by the rebels, that I considered it could not be taken without serious loss to us, uncompensated by any corresponding loss on the side of the rebels, who could at any time escape into the bush with impunity. I stated that this was the reason why I had advanced to the Waitotara, afterwards to the Patea, and why I thought it necessary to consult you as to future operations." 7. This conclusion was come to at the time that Sir D. Cameron was erroneously so strongly impressed with the idea of the strength of the enemy, and with the determined nature of the resistance they intended to offer, that he stated he could not advance even as far as the Patea without reinforcements from home of at least 2000 men, and it clearly had nothing to do with the delay of three months which had taken place in his proceeding from Auckland to Taranaki, and from thence to Wanganui. Appendix B. Copy of a letter from Sir George Grey to Lieut.-General Sir D. A. Cameron. My bear General, —■ AVanganui, 13th March, 1865. I again talked over with the Colonial Ministers your recommendation that I should apply to England for a reinforcement of at least two thousand men. I found that it would be impossible for me to obtain their concurrence in such a recommendation, for various reasons, which they stated at length. They came to this conclusion entirely on their own convictions, and I came to the same decision for the following reasons : — I think it essential to the future peace of the country that the whole line of coast between this and Taranaki should be open to us, in fact occupied by us, and that friendly relations should exist between us and the Natives inhabiting that tract of country. The sooner these ends are gained, the more speedily will peace be restored to all New Zealand. Believing this, I am naturally anxious to see these ends attained as soon as possible. What remains to be done, however, after you have subdued the country north of AA ranganui, even so far as Patea, is not, in my belief, more than the Colony ought to be able to accomplish in say two years from the present time, from its own resources. If therefore the force you have is not sufficient to enable you to occupy the country which remains between the Patea and the point Colonel Warre can advance to, I think the Colony must be satisfied with what you can do with the resources at your disposal; and that after all England has done for it, it ought not to call upon Great Britain to send further large reinforcements here. I really should feel most unwilling to make such a demand. Everything that is now taking place leads me to the conclusion that the Natives will soon submit in nearly all parts of the Island, and once they do submit, they return much more speedily to friendly relations with us than you would suppose. If lam right in this view, the war might be nearly terminated before further reinforcements could arrive. I have, <fee, Lieut.-General Sir D. A. Cameron, K.C.B. G. Grey.

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Extract from a letter of Sir G. Grey to General Cameron, 22nd March, 1865. AYliat I desire to sec is, the subjection and punishment of tribes who have been guilty of great atrocities and have instigated others to commit similar acts. Until thejr are put down and punished I am sure there can be no peace or safety in this island for Her Majesty's European subjects, or for loyal and well disposed Natives. Next, I would say, you have in j rour own correspondence, answered the question whether or not I can wish you to attack the AVeraroa Pa at ouce. However necessary I might think the capture of the pa to be, to prevent wrong impressions in the Native mind, or to attain the important objects which you have pointed out in your letter of the 17th instant, would follow from the capture of that pa, it is quite impossible for me to request you to attack it at once, when you have told me that you consider your force insufficient to attack so formidable a work, and that to enter upon this task you would require an available force of two thousand men ; that the Natives have rendered the pa so formidable a position, and have at the same time occupied it in such strength, that it could not be taken without serious loss, uncompensated by any corresponding loss on the side of the rebels, who could at any time escape into the bush with impunity. The other alternative presented to me, must therefore necessarily be the one that I choose, viz., —that you should continue your advance towards Taranaki, so for as the means at your disposal will admit. All I would ask is, that when you find that you cannot get further than some particular point, that you would let me know where that is, that the Colonial Government may determine what it will then do. I have, &c, G. Grey. Lieut.-General Sir D. A. Cameron, K.C.B.

Appendix C. Extract from a Memorandum by Mr. Weld, 26th June, 1865. They agree with the Governor that his instructions to Lieut.-General Sir D. A. Cameron havenot been carried into effect. The country between AVanganui and Patea is not in our possession, and the defiant attitude of a few hundred fanatics at the AVeraroa Pa, in the immediate presence of a British army, and commanding the main line of road between AVanganui and Taranaki, —the very Waitotara road which it was the object of the Government to carry on, —has renewed the confidence of the hostile Natives, not only in their superior prowess, but also in the supernatural powers which their prophets claim to possess. As the means at the disposal of the Lieut.-General are, in his opinion, insufficient to enable him to capture the AVeraroa Pa, Ministers whilst availing themselves of this opportunity of reiterating the expression of their respect for the gallant British Army now in this country, are of opinion that its forced inaction renders it a source of weakness to the Colony, and rather retards than promotes that peace which it was their hope ere this to have established. They believe that the political action of the Military Officer Commanding has resulted in fresh embarrassment and detriment to the public service. Extract from a Memorandum by Mr. Weld, 12th July, 1865. In the actual conduct of operations in the field, not merely have the instructions given by His Excellency the Governor to the General been disregarded, but the efforts of the Colony to bring the war to a close by tho capture of the Weraroa Pa, the centre and focus of disaffection (as admitted by high military authority), have been frustrated by military interference. The effect has been, not merely to protract the war and exhaust the resources of the Colony, but the enemy has been emboldened, his stronghold reinforced, and a new outbreak is threatened on the East Coast, the natural and obvious result of the inaction of the Imperial Forces on the AVest Coast. Had the Colonial Government received from the Imperial Forces the hearty assistance and co-operation which they had a right to expect; or had the Colony been permitted to carry out, without interference, its policy of self-defence, Ministers believe that peace would have been ere this restored, and the Colony relieved from the burthens which are involving it in ruin.

Appendix D. Copy of a Memorandum by Mr. Stafford. Ministers have read General Cameron's letter of the 4th September, 1865, transmitted in Mr. Cardwell's Despach No. 86, of October last. Ministers do not desire to prolong the discussion as to the AVeraroa Pa, but they think it right to express their unqualified dissent from General Cameron's statement with respect to the position of affairs on the Fast Coast. It is difficult to understand how General Cameron could describe this position as being one with respect to which there would appear to be no necessity for our interference. The following is a brief review of the facts in connection with it: Some months before General Cameron left New Zealand the Bey. Mr. A Tolkner had been murdered at Opotiki, on the East Coast. This murder was long premeditated, was committed in cold blood, and accompanied by cannibalism and other atrocities. The person murdered was a most amiable missionary, who for many years had devoted his time and energies to the improvement of Natives who were consenting parties to his murder. Another Missionary clergyman, who was with Mr. A'olkner, escaped with difficulty from their hands. No single event since our occupation of the Colony produced so profound a sensation amongst both Europeans and Natives. The impunity which apparently followed so great an atrocity was daily encouraging Natives more or less disaffected in many parts of the Colony to throw off all restraint and to plan further outrages. Hau Hau emissaries from Taranaki, Wanganui, and other places,

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traversed the East Coast, carrying on poles the head of soldiers whom they had killed, and openly announced that a similar fate awaited other missionaries, including the Bishop of AVaiapu. Mr. Fulloon, who was a half-caste related to some of the Natives in that district, requested permission to visit it, believing that his influence might check the spread of the fanaticism; but himself fell a victim to it, being murdered while lying in his bed on board the vessel in which he was, which was boarded for that purpose; three other persons on board being murdered at the same time, the goods taken out of the vessel, and the vessel then burnt. To oppose these fanatics there were at the time, to the north of the East Cape, only the Arawa tribe who were friendly to the Government, but who were outnumbered, and often driven bark to the shelter of their pa. On the south of the East Cape, the Chief Mokcna, near Waiapu, with a small following, could alone be found to profess friendship to tho Government, and opposition to the Hau Haus who surrounded him. In this extremity he appealed to the Government, who sent him arms and a small party of Military Settlers and Volunteers, who relieved him, and with his co-operation routed tho fanatics in his neighbourhood. Further south the Hau Haus invaded Poverty Bay. Bishop AVilliams threatened with the fate of Mr. A rolkner was obliged to leave. So urgent was the demand for assistance, and so small the power of affording it, that thirty-five men were all that could at first be furnished to that district. One of the first acts of the present Ministry, after they took office, was to take measures, iii concert with Mr. McLean, Superintendent of Hawke's Bay, for the relief of Poverty Bay, by collecting from other places a mixed force of Europeans and Natives in the pay of the Colony; nor did this relief arrive in Poverty Bay a day too soon. They found on their arrival the Hau Haus in possession of the Bishop's premises, that they had destroyed his books, furniture, garden, and fences, and were about to burn his house, near which they were erecting a strong pa ; that they were driving in and destroying the cattle and sheep of the settlers, and wrecking their homesteads, and that they were daily being reinforced by numbers of other Natives from other places ; while so doubtful was the loyalty of even those Natives of the district who had hitherto professed to be friend^ that we now know that they nightly debated whether they should not join with the Hau Haus in an attack on the thirty-five Europeans who had gone to help them. Had the Colonial Force sent into the district not encountered the Hau Haus with the same success as has attended its operations at Opotiki and other places, there is no doubt that the settlers of the Province of Hawke's Bay, and subsequently those in the AVairarapa, would have been the next objects of their outrages. No previous period in the history of the Colony has been more critical as to the prestige of the Government, and its power to suppress crime and prevent a general outbreak, than the period from the murder of Mr. Volkner till within a few weeks of the present time; and certainly the last opinion which might have been expected to have been expressed with respect to the jjosition of affairs at that •time, was that " there would appear to be no necessity for our interference." Extracts from papers referring to the state of affairs on the East Coast since the murder of Mr. Volkner, arc enclosed for the information of the Imperial Government. E. W. Stafford. Wellington, Bth January, 1866.

Enclosure to Memorandum. Extract from a letter from frigidly Chiefs at the Whaiti to Dr. Nesbitt and Mr. Civil Commissioner Smith, dated 17th February, 1865. ###** ***** " Natives of Taranaki, AVaikato, and Eaukawa, have come here to preach (the religion of) their God, and leading also Pakeiia captives; there are two living men and one head of a murdered man. When they came here they urged us to turn to their God, but we did not consent. They replied, 'It is well; the bearer of onr sword is closed behind to destroy you and all the Arawa.' " * * <• * * *" * * * * Extract from a letter from Miss Wallace, dated 21st February, 1865, of Whakatane. • *•'•* ***** " On Saturday last a large party of ' Pai Marires arrived at Ko Peopeo from Taranaki and Taupo, bringing with them a British soldier a prisoner, and the head of Captain Lloyd, which they exhibit with a cap of the 70th on ; they pretend to make it speak. " They have put a cut* on this port, and have laid down the law here, that no vessels are to be •allowed to come here usder pain of being taken, and all on board 2'ut to death. Our informant, an European, who has been watching and listening to all that has been going on, Bays I::' is afraid the Ngatipukeko will not dare to resist them, as they are in great terror of them. They left for Opotiki •on Monday morning, leaving behind a party to watch that the cut is not broken. " At Opotiki they will do the same, and were heard to say that they would give the Eev. Mr. A^olkner orders to leave, and if ho refused he would be killed. If the AVhakatohca refused to do it, they would. " AYe have promised our informant to try and girt notice sent to Mr. A^olkner not to come to Opotiki at present, but to wait in Auckland till he hears how the Opotiki will act. " Please to let him know as soon as possible, in case he should come by next trip in the ' Eclipse.' " The intention of the ' Pai Marire' is to do all they can to raise the people on this coast as far as Turanga, and then return in great force on Maketu and Tauranga." ##*******# * "Sxti"—to shut. 9

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Extract from letter from the Civil Commissioner, Tauranga, to the Honorable the Native Minister, dated 7th March, 1865. ********** " The fanatics arc going down the coast carrying everythimg before them. It is said that Tauranga is their destination. Fears are entertained for the safety of the Europeans along the coast." ***#** * * l * * Extract front a letter from the' Civil Commissioner, Maketu, to the Honorable the Native Minister. dated 15th March, 1865. ********** " I have also to report that letters have been received here from the inland tribes at Te Eotoiti, Eotorua, and Tarawera, expressing similar sentiments, and that the Arawa appear unanimous in offering their services to the Government to assist in carrying out any active measures which may be adopted for the suppression of rebellion or inflicting punishment upon the perpetrators of the diabolical murder recently committed at Opotiki." *#*##***#* Extract from letter from the Maketu Chiefs to the Civil Commissioner, Maketu, dated 18th March, 1565. ********** " If the Arawa are ordered to go, let troops be sent to take care of the women and children, and the whole district." From the committee of Maketu. (Signed) Taiiiorangi, • Taiapo, Haere Huka, Eoto Eangihoro, EeWI TEREANtTKU, AVate Taranini, Te Pokiha, and eight others. Extract from a letter from the Civil Commissioner, Maketu, to the Honorable the Native Minister, dated 22nd March, 1805. ********** " I beg to request the serious attention of the Government to the present position of our allies, the Arawa tribes, as indicated in the enclosed report. From information derived from various sources, I am satisfied that an attack upon them is contemplated, and they look to Government to furnish them with the means of defence."

Extracts from Report by the Resident Magistrate, Rolorua, addressed to the Civil Commissioner, Maketu. * * *.* # * * * * * " The Natives inland have built and fortified six pas, and if supplied with arms would be able to protect themselves against any hostile attack, unless made by overwhelming numbers. They are kept in constant state of alarm by reports of the AVaikato and other tribes coming to punish them for arresting Hori Tupaca and his party. " The present state of Puhirua is an additional reason why the friendly Natives should be supplied with arms. "This place, situated within ibis district, is exclusively occupied by votaries of the now religion. " On Sunday week the Bey. Mr. Spencer, in endeavouring to pass through this place on his professional duties, was ordered to return on pain of being arrested if he persevered. " There are letters and messages of mutual recrimination constantly passing between them and the friendly Natives. This place is also becoming a sort of asylum for those who have made themselves amenable to the law, and from all these circumstances it is impossible to say when a collision may take place." ******** Extract from the Civil Commissioner's Report, dated 21st April, 1865. " I have the honor to forward for your information an original letter, received by me from the Eesident Magistrate at Eotorua, respecting the state of affairs in the inland portion of the Bay of Plenty District at the date of his communication. From later information received from Tauranga, it would appear that the Arawa at Maketu, and inland, are expecting to be attacked; but I have received no precise information as to the position or numbers of the enemy by whom they are supposed to be threatened." " The Hon. the Native Minister, Wellington." Extract jrom Report of the Resident Magistrate, Rotorua, to the Civil Commissioner, Maketu. dated 6th April, 1865. " On the 20th ultimo, a woman of the Ngatipikiao was seized, while on her way to one of their cultivations, by two men whom she supposed to be Waikatos from their accent, who, having deprived her of her garments, dismissed her with the intimation that a party was on the way to attack the people of Te Eotoiti. In consequence of her report, the entire population of the district assembled at the latter place on the 21st, but no foe appeared. About the same time, two of the Ohinemutu people,

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who had gone to Purakau, were there taken prisoners and threatened with decapitation, but were released on the remonstrance of one of the party —I believe a AYaikato Chief. These are the only overt acts I have heard of, and with these exceptions the district is quiet. " The last report is, that a letter has come from Hakaraia, inviting the Puhirua people to join him in attacking Maketu, instanter; that the road between this and Maketu is to be stopped after this week, and that Thomson is daily expected at Puhirua, who, on his arrival, is to ' let slip the dogs of war.' " The people, when not engaged in hearing or telling some such rumours, arc occupied in making or repairing war canoes for the anticipated struggle, having finished their pas." Extract from a letter from the Chief Rangitukehu to Mr. Civil Commissioner Smith, dated 15th July, 1865. ********* " This is another word. Te Mokena and tho Hau Haus have had an engagement, and the Ngatiporou Queenites have been defeated by the ' Pai Marire.' Fifty of Mokena's people have been killed, and five made prisoners. The Hau Haus have lost three." Extract from a letter from Rangititu to A. Karaka and others, dated 17th July, 1865. ********* " Three of our slain have been found : Hohepa, Eru, and Tamihana—their heads have been cut off, their eyes scooped out and eaten, and their hearts have been taken out and eaten." ********* Extract from a letter from Wi Keepa of Tarawera to Mr. Commissioner Smith, dated 19th July, 1565. ********* Sub-Extract to W. Keepa from Pukeku : "We have ceased to hold our road, the Haehaenga [meaning we no longer wish to prevent its being used as a warpath], for the Hau Haus are masters here now. The breath of my nostrils is stopped, my breath can no longer pass forth to you. But it will be for you to represent our case to our Pakeha friends, to Mr. Smith and to the Governor, that something maybe speedily done at Ohiwa and elsewhere. Behold us shut up in prison at this time ; you must seek the means of deliverance. Enough." ********* Memorandum of a Statement made to me by Te Puhi and Wi Maruki, on the %Oth July, 1865. On the 17th July, the schooner " Maruiwi" sailed from Maketu for AVhakatane. The '' Maruiwi" belongs to the Ngatiwhakairi tribe. She went to Whakatane to take back a woman belonging to AVhakatane named Pipiana, the widow of Tauira, a Ngatiwhakawe Chief; also to bring to Maketu a cargo of potatoes belonging to Hohaia Matatihokia, Native Assessor, and others of the Ngatonu tribe, of Kopiopeo, AVhakatane, Te Puhi, AVi Maruki; and several Natives of the Putuwai tribe belonging to Motiti and AA'hakatane went in the " Maruiwi." On the arrival of the vessel at Whakatane, Te Uhi despatched a letter to Te Hura at Te-Awa-o-te-Atua, informing him that a vessel belonging to the Arawa had arrived at AVhakatane. Te Hura immediately collected a party of his own tribe, Ngatirangihouhui, Ngatihikakino, and Te Patutatahi, and went over to AVhakatane. They seized the " Maruiwi" and would have killed Te Puhi and his companions but for tho intervention of Kawakura. Wepihute Pono was absent at Te Kaha when the " Maruiwi" arrived. Te Puhi and his companions were made prisoners, but the Ngaitonu took them under their protection and saved their lives. The cutter " Kate" left Maketu for Whakatane on the 21st July. She arrived at AA Thakatane in the night of the 21st, and anchored outside. There were six persons on board: Captain Pringle, one European sailor, Mr. Bennett White, Mr. James Fulloon, a half-caste named Te Hareke, and a Native named Matimati, of Tauranga, son of Turere. Te Hura's party was still at AVhakatane when the " Kate" arrived. The cutter auchored off AVhakatane on the night of the 21st; Bennett AVhite's son, with a companion, went off to the vessel in tho night, he remained on board and his companion returned on shore. In the morning a party of tho Hura's Natives went on board the cutter in a whaleboat belonging to a party of Te AVhauau Apanui who were on a visit to AVhakatane, among them there was a Native named Parakaraha. At that time it had not been decided what was to be done, and Parakaraha was told to remain on board and prevent the vessel from going away. The cutter was observed by Te Puhi from the shore to hoist her topsail, and he supposed that the information which Bennett AVhite's son had given of the seizure of the " Maruiwi" had induced the captain to try and get away. Meanwhile Kawakura, fearing the vessel might be seized, had sent over to the Ngatipukike, at Kopiopio, to come and prevent it. In the Hura's party there was a Native named Horomona, a Taranaki Native, one of Kereopa's party; he is one of the Pai Marire prophets. On hearing of the arrival of the " Kate," Horomona at once proposed seizing the vessel, and murdering all the Pakehas. His proposal was under consideration when the whale-boat with Parakaraha was sent off. It was eventually assented to, and the whale-boat was sent off a second time, just as the Ngatipukeho arrived in answer to Kawakura's summons. This time it took off a party of armed men, under Hemara, a Patutatahi Chief. Its crew went on board, and a meal of food was prepared and partaken of, during which it was arranged that at a certain signal four Natives should seize each of the Europeans The signal was given, " porini," and the Pakehas were seized; they struggled, and it was with difficulty they were overpowered and thrown down. The captain and the sailor were first despatched, shot through the body. Bennett AVhite's son threw himself between his father and his would-be murderers, and three times prevented shots aimed at him from taking effect. Fulloon was below in his berth. Te Hemara went into the cabin ; he shook Fulloon, but he did not arouse. He took away his revolver and double-barrelled gun. Some one then fired at and struck Fulloon in the arm. He then put out his hand to reach his revolver, but it was gone. Another shot was fired at him as he lay, then a third,

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DESPATCHES FROM THE GOVERNOR OF NEW

which was fatal. The last shot was fired by Hoani Poururu, of Otamauru. After the murder of the Pakeha-; the vessel was taken into the river. Bennett AVhite was allowed to go to his wife's relations. The vessel was stripped, and her cargo distributed by Te Hura among the Ngatiawa. The Taranaki prophet,. Horomona, had given orders that Bennett White's son was not to be killed, but when he tried to save his father two shots were fired at him and missed. Te Puhi and AVi Maruki remained prisoners at Kopiopio until last night, when, with the assistance of Hori lunui and some of their relations of the Patuiwai, they made their escape, and succeeded in reaching Ohope, where they found Apanui Kepa and others, who provided them with a canoe, in which they, five in number altogether, embarked, and arrived at Maketu this evening. Te Kepu, Apanui, and Kawa Kura told them to urge upon the Arawa the necessity of prompt action. A special message was sent to Taiapo. Te Hura has returned to his settlement at Te Matapihi, Te Awa-o-te-Atua, and the Patutatahi are at Otamauru, on the Eiver Oriui. AVepiho te Pono has gone to Opotiki to prevent the Whakatoheas from joining the Hura. He is distracted at the loss of his "tuakana," and vows vengeance upon Te Hura's party. After the vessel " Kate" was brought into the river he went on board and demanded his brother's body, which was given up to him with the " Maruiwi" boat. The latter was used as a coffin, in which the corpse was buried. The captain and sailor were buried by the Pai Marire. Five hundred pounds was demanded by the Hura as a ransom for the " Maruiwi." Both the "Kate" and the "Maruiwi" were afterwards burned. Tnos. H. Smith, 30th July, 1565. Civil Commissioner, Bay of Plenty. On the 17th March, 1865, the Bishop of AVaiapu reported to the Colonial Secretary as follows : — " The state of the district (AVaiapu) is unsettled, owing to a visit from the Pai Marire, who murdered Mr. A'olkner." On the 16th June, Mr. McLean, Superintendent of tho Province of Hawke's Bay, and Agent for the General Government on the East Coast, reported— " The unsettled state of the Natives at Poverty Bay cause the settlers there so much anxiety and alarm, that they were seriously considering the propriety of leaving the district. A small party of .Natives, headed by the Chief Mokena of AVaiapu, hoisted the Queen's flag at Taranganui, and erected a temporary pa to defend themselves against the Hau Haus." #"******** " The Natives under Te Mokena declared that they had no object in hoisting the flag, beyond that of showing that they were subjects of Her Majesty." On the 26th June, Mr. McLean reported—" That an engagement took place at the East Cape, on the 11th instant, between the friendly Natives and the Hau Haus. The loss of the friendly Natives was six killed and three wounded." A friendly Chief (who fought in this engagement) writes on the 19th of June, asking for arms and ammunition. He says —" Let all these articles be sent —do not hesitate ; for the reason the Queen Natives met their death was the want of caps, being all used in the first volley. The Queen Natives had only one box of caps amongst them. This is the reason I have written for caps to be sent, also some powder. Be sure—be quite sure these things are sent to us." * * "Be quick, as all the tribes below us have assembled to fight against us. It is for this reason then that we earnestly urge you to come quickly —to make all haste and come." Another friendly Chief (Mohi) writes under same date (19th June), and in reference to the same affair as Potai, relates : —" The great desire of the Queen party now at Tikitiki, is, that soldiers may be sent to support them. My friend, haste to send in soldiers at onee —this present month. Hostilities will doubtless be recommenced in a day or two, for the fortifications of both sides are close together (one opposite the other.) My friend, we hope you and the Government will consider our position. Farewell; and may God protect us all. AYe request that prayers may be offered for our protection throughout these troubles." On 26th June, Mr. McLean wrote to the Colonial Secretary as follows : — Sir,— Napier, 26th June, 1865. Ecferring to my letter of this daj r's date, reporting an engagement at the East Cape, I have the honor to recommend that the friendly Natives should be well supported by the Government, and I think it would be most advisable to create a diversion in their favor by the occupation of Opotiki, and by reinforcing them with fifty or one hundred A'olunteers. In number the Government Natives are about five hundred strong; their opponents, including the Natives north of Hick's Bay to AYakatane, would be much more than this number, without including the disaffected tribes at Poverty Bay, three hundred of whom would be likely to join against the Government Natives. The war now commenced on the East Coast requires to be pursued vigorously to bring it to a speedy and favorable termination. The friendly Natives arc in good spirits, and if well supported will do great service to tho country, and I trust the applications made by them to the Government for assistance will be favorably entertained. I have, &c, The Hon the Colonial Secretary, AVellington. Donald McLean. On the 26th July, Mr. McLean reported—" I proceeded in H.M.S. "Eclipse" to the East Cape, with the party of Military Settlers (50 in number) who were detached from Napier to aid the Chief Morgan (Te Mokena) against Patara and his Hau Hau confederates." On the sth August, Mr. McLeau wrote to the Colonial Secretary as follows: —" I have the honor to acquaint y< >v that the si aI c of the Natives at Poverty Bay is most unsatisfactory ; the great majority (including several of the leading Chiefs) have joined the Pai Marire faith." Mr. McLean at the same time encloses a letter from J. AY. Harris, Esq., " who (Mr. McLean says) from his long residence at Poverty Bay, is in possession of reliable information on Native matters."

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A.—No. 1

Mr. Harris says (23rd July)—" Our people are joining the Hau Haus as fast as possible. AYe are now in a sad minority." * * " You must support Morgan. If he is beaten, this district is lost." On the 21st August, Mr. McLean forwarded translation of a letter addressed by the friendly Natives of Poverty Bay to His Excellency and the General Assembly, praying for a visit of a man-of-war, as follows :■ — To His Excellency the Governor, —■ Turanga, sth August, 1865. To the General Assembly at this time assembled at Wellington,— Greeting you. This is to show you, and also that you may know tho state of our residence here in this portion of our island. AYe are driven out of breath by the overbearing works of the Hau Haus—through the greater number of the men of this place having joined the Hau Haus. At the present there are but lew of us who are sticking to the Government. The great talk of the Hau Haus now is, "that they are about to raise the island," that is, the Europeans will be put out of sight by them* They are constantly throwing out threats to us, the loyal Maoris, to compel us to join them. This is what they say, "Do you make haste and join us, because that when the day arrives that the head of my weapon shall be raised I will not look about' whether it be friends, or children, or fathers, or brothers—all shall be cut off." These are the reasons that cause them to boast at the present time —first, with respect to the fighting at Waiapu ; the long absence of the supports for Mokena and his friends. They also say that Te Ua fell in all the soldiersf to turnj to him, by which means an attack on this place|| would not be effectual. Another reason is the death of Mr. Volkner, minister, who was murdered at Opotiki, has not been revenged up to the present time. They say that it is given up, and no notice will be taken of it. AYe answer proverbially, " Leave it there, let it lie, it is a party of old folks crawling along, says Pararaki."§ Another thing is the remitting manner in which the fighting in this island has been carried on ; they say it is on account of tho excessive loss of the soldiers that engagements have not been repeated oftener in the past engagements. Nevertheless, friends, we still have knowledge that you yet hold goodwill toward us ; we therefore request that you will consent (direct) to the men-of-war which traverse these seas that they may turn in here and visit us, and afterwards proceed on their respective voyages. From Tamihana Euatapu, EtTTENE AntTNUKF, Hape Kiuiua, Wi Haronga. F. E. Hamlin, Interpreter. On the 6th September, Mr. McLean wrote—" The European settlers and friendly Natives at Poverty Bay have applied for assistance, and it is highly necessary that this should be afforded them as soon as possible. It would, in my opinion, be most impolitic to remove the settlers, or to abandon the friendly Natives of that place, who are in a minority, and who, if deserted, would receive no mercy at the hands of the Hau Haus." On the 12th December, Mr. McLean sent to the Government a copy of the following letter from Captain Biggs, of the Napier Volunteers, reporting the state of affairs at Poverty Bay: — Sir, — Turanganui, 6th November, 1865. I have the honor to report to you the information I was able to obtain at Turanganui from the most reliable sources. On Thursday evening and Friday last the Hau Haus commenced plundering the houses of the settlers at Makaraka, which they had been forced to abandon. Mr. Wylie's house was pulled down for the purpose of making bullets, it being zinc ; and the fence on the Government land was burnt. The Hau Hau declares that if the above will not induce the white men and friendly Natives to commence fighting, they shall murder the first European or Maori who may be on their side the river. Besides what I have mentioned, the Hau Hau have killed a considerable quantity of stock, and driven some fifteen hundred sheep inland. They threaten to destroy the Bishop's house, buildings, &c. The fanatics have built four strong pas, and are now engaged in throwing up an earthwork on the top of an isolated hill about a mile in rear of one of their pas, where, if they are beaten out of their other pas, they will make a stand. The number of fighting men on the enemy's side muster about six hundred, but they are indifferently armed. The friendly Natives number but few. Hirini has but eighty men, some of which are old men scarcely fit to bear arms. Paratene has about forty ; but, though he himself is perfectly loyal, his men are not to be trusted, as they keep up constant communication with the Hau Hau. Henare Potae has fifty men with him, who are, of course, thoroughly good men, and can be relied on. The whole aspect of affairs here looks as serious as it possibly can. The Hau Hau have destroyed houses, plundered others, killed stock, fought against us at Waiapu, attacked Henare Potae's pa, when it was supposed by them that there were only a few old men, women, and children remaining in it. Tareha, soon after his arrival here, proceeded to Orakaiapu for the purpose of seeing Eaharuhi; and, from the letter I enclose, you will see that the latter has agreed, as far as he himself is concerned, to take the oath of allegiance. This Chief has, I find, but little influence with his people, (Anaru Matiti being able to do what he * Annihilated, f Native. % Under his command. || Island. §An old forefather. 10

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likes with them,) and has for some time past been wishing for a favorable opportunity to occur by which he might escape from the position he has placed himself in. There is but one course to pursue, i.e., an unconditional surrender, which, in my opinion, cannot be effected but by reinforcements coming here immediately, in which case it might be possible to obtain it without a blow being struck. TJnless they see a strong force concentrated here, and also that we are prepared for any emergency, I much fear all negotiations with them will fail. I have, Ac, Hia Honor D. McLean, Superintendent, Napier. Eeginald Newton Biggs.

Appendix E. Mr. Fulloon to the Hon. Major Atkinson. Sir, — Auckland, 7th June, 1865. I have the honor to submit for your consideration that instead of my proceeding to Wellington, I should be permitted to proceed to Whakatane for the purpose of checking the spread and, if possible, suppressing Pai Marireism, and also of observing the Opotiki Natives, &c. I would also suggest for the consideration of the Government, the advisability of interdicting all trade or commerce in the Bay of Plenty—say from AVaihi to Cape Eunaway. As the Natives have or are now gathering in their crops of maize, wheat, and potatoes, and are very badly off for clothing, &c, and the cold winter season is now rapidly setting in, and so by interdicting all trade, would sooner bring them to their senses than anything else that could be done just now. It would also, in a great measure, affect the Pai Marircs. I have, &c, The Hon. the Minister for Colonial Defence, Auckland. James Fulloon. Memorandum by Mr. Holt. Mr. Fulloon was authorized verbally by the Hon. the Defence Minister to proceed to Whakatane, on his way to AVellington, as suggested by him in this letter. J. Holt, Hnder Secretary for Colonial Defence. Mr. Fulloon to the Hon. Major Atkinson. Sir, — Tauranga, 17th July, 1865. I have the honor to report for your information that I leave this for AVhakatane to-morrow. I have not been able to do so before from the inclemency of the weather. The news from the East Coast is that Dr. Agassiz and about thirty of the Opotiki Natives have left that place, and have gone to residence, Opape, the eastern boundary of Te AVhakauhia ; they have separated themselves from the others. Eparaima (the half-caste) has been compelled to leave Te Awanui, and is now at Opotiki. The Whakawheas are not in the least fortifying Opotiki. They hung two pigs at Ohiwa, in effigy of His Excellency and Lieut.-General Sir Duncan A. Cameron. There is great mortality amongt the Natives on the East Coast, as many as seventy-five died in one day at one settlement. As soon as I return from Whakatane, I shall immediately proceed to AVellington. The Hon. the Minister for Colonial Defence, Wellington. I have, &c, James Fulloon.

Appendix E. Colonel Warre to Governor Sir George Grey, K.C.B. New Plymouth, New Zealand, 2nd August, 1865. My Dear Sir George Grey,— In my endeavour to answer candidly and in a friendly spirit certain questions addressed to me in a private or semi-official letter (dated Auckland, Ist July, 1865) from Lieut.-General Sir D. A. Cameron, prior to his departure from this country, I have unfortunately exceeded my object, and he has arrived at a conclusion so entirely at variance with that I intended to convey, that I feel it is due to your Excellency and the Colonial Ministers, as well as to myself, to request you will do me the favor to make known to the authorities at home, to whom Sir Duncan Cameron intends to refer the question, how far he is justified in making the following remarks, viz.: — " Auckland, 26th July, 1865. "It was not without good reason that I asked you the questions contained in my letter of the Ist July, and I fully expected to find what you admit, that you have been in the constant habit of giving your opinions to the Governor and the Colonial Ministers freely on military operations and military subjects of every kind without my knowledge. I can hardly believe that your conduct will be approved of by the authorities at home." ********* The admissions contained in my letter to Sir Duncan Cameron were confined to the expression of my opinions, privately, on all subjects connected with the Native Insurrection, and in replying to questions verbally on any subjects that your Excellency or your Ministers while resident in Taranaki may have put to me. I appeal to your Excellency whether I ever presumed to offer such opinions as " advice," or whether I ever originated or suggested any military operations opposed to the known wishes or views of the late Lieut.-General commanding. I have, &c, His Excellency Sir George Grey, K.C.B. H. J. Wabre, Colonel.

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ZEALAND TO THE SECRETARY OF STATE.

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Appendix G. Memorandum by Mr. Parris for His Excellency the Governor. A Native named Hemi Warcna, from Eangitikei, arrived this day at the camp before Weraroa, with information that Natives of the undermentioned tribes had gone from the south by way of Upper Wanganui to reinforce the Weraroa Pa : — Ngatiraukawas ... ... ... ... ... ... ... 100 Ngatiwhakateres ... ... ... ... ... ... ... 20 Ngatikauwhatas ... ... ... ... ... ... ... 60 Moaapokos ... ... ... ... ... ... ... ... 3 Ngatipikiaas... ... ... ... ... ... ' ... ... 30 Ngatirangataes ... ... ... ... ... ... ... 20 Ngatikahungunus ... ... ... ... ... ... ... 30 Total ... ... ... ... 263 July 21st, 1865.

No. 20. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edward Cardwell, M.P. (No. 3.) Government House, Wellington, Sir, — 2nd January, 1866. In my Despatch No. 108, of the 4th August last, I had the honor to transmit for your information, at the request of my Eesponsible Advisers, a Memorandum from General Cameron dated 26th July last, together with their remarks upon it; and I stated that it was my intention, by the succeeding mail, to make my own remarks upon that Memorandum. 2. In your Despatch No. 86, of the 26th October last, you express your disappointment at my intending to pursue this course, as you could have wished that with General Cameron's departure from New Zealand it had been possible to close this painful subject. 3. It is with great pleasure I thus learn how entirely my sentiments have been in accord with your own upon this point. The moment I found that General Cameron had really quitted Australia on his way home I took no further notice of his Memorandum, and did not trouble you upon the subject as I had proposed to do, and it is with great regret that the letters he has written to the Home Government, which have been forwarded to me, have forced me into any further correspondence in relation to General Cameron. I have, &c, The Eight Hon. Edward Cardwell, M.P. G. GREY.

No. 21. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right lion. Edward Cardwell, M.P. (No. 4.) Government House, Wellington, Sir, — 4th January, 1866. In my Despatch No. 3, of the sth January, 1865,1 transmitted a Petition to ncr Most Gracious Majesty, from the Provincial Council of the Province of Auckland, praying that in the northern portion of the Northern Island of New Zealand such a Government shall he constituted as would enahle Her Majesty's Imperial Government to exercise such a control over Native affairs, until a cordial good feeling hetween the races should have heen restored, as would enahle it to ensure the fulfilment of the treaty obligations undertaken by Her Majesty, and promote the good government of Her Majesty's subjects, both Native and European. 2. In the same Despatch I stated that I would, at a future date, report on that Petition; but, in the meantime, I thought it right to say that I thought that unless some such arrangement as that proposed in the Petition was carried out it would be difficult to bring to a satisfactory termination the difficulties prevailing in that Province. 3. In my Despatch No. 26, of the 7th February, I informed you that my

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Responsible Advisers had asked me to reserve my report on the Petition until I had first received remarks which they wished to make upon it. 4. Subsequently I found that the matter had become one which had excited very strong political feelings, and that Her Majesty's Government and my Responsible Advisers had adopted views opposite to those which I held on the subject. I therefore felt it my duty to refrain from doing anything which might tend to embarrass either Her Majesty's Government or the Colonial Government, and I did not forward the Report which I had proposed to make. 5. In your Despatch No. 50, of the 26th July last, you informed me that you inferred from not receiving that Report that I had changed my opinion and concurred in the views of my then Responsible Advisers. 6. I think it right therefore to state that nothing which has yet taken place has led me to alter the opinion which I expressed in my Despatch No. 3, of the sth January, 1865. 7. The opinion I hold is based upon the necessity of strong, instantly acting, and entirely impartial Government, in a case in which an European race and a powerful and jealous semi-barbarous race are mingling together. A country so circumstanced requires more government than a country in which an ordinary state of things prevails. I think that with such a government the happiness and peace of both races in the Province of Auckland might be shortly ensured, and that the present anomalous state of tilings would soon cease to exist there. I fear that without some such arrangement as is proposed is carried out, a long time of difficulty and trial lies before the northern part of this Island, which I should naturally regret to see it subjected to because I believe it to be unnecessary. A few years since I thought the various questions outstanding between the two races would have been adjusted much more speedily than has been the case. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

No. 22. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 5.) Government House, Wellington, Sir, — Bth January, 1866. My Responsible Advisers have requested me to submit for the consideration of Her Majesty's Government, the enclosed statement of the losses the Colony of New Zealand has sustained from the failure of the Mail Steamers of " The Peninsular and Oriental Company," to arrive in Australia with the European Mails on their due dates, and the claim of this Colony to compensation for these losses. I have, &c., The Right Hon. Edward Cardwell, M.P. G. GREY.

Mr. Stafford, sth Jan., 1866.

Enclosure in No. 22. Copy of a Memorandum by Mr. Stafford. Ministers desire to bring under the notice of the Imperial Government the great pecuniary loss sustained on several occasions by this Colony, in consequence of the failure of the Mail Steamers of " The Peninsular and Oriental Company " to arrive in Australia with the European Mails on their due date. Three lines of steamers are maintained between Australia and New Zealand for the special purpose of carrying English Mails to and fro, at the following cost: — Ist. Between Victoria and Otago—Nine thousand five hundred pounds per annum (£9,500). 2nd. Between Nelson and Sydney—Six thousand pounds per annum (£6,000). 3rd. Between Sydney and Auckland—Thirteen thousand pounds per annum (£13,000). Altogether amounting to Twenty-three thousand five hundred pounds per annum (£23,500). The first two services are maintained wholly at tho cost of this Colony. A moiety of the cost of the third is paid by the Imperial Government. The line between A^ictoria and Otago was established expressly for the purpose of bringing the English Mails each month from Melbourne to the Southern Provinces in New Zealand, in sufficient time for correspondence to be answered by the return boat of "The Peninsular and Oriental Company" for the same month; but not only has this important object been repeatedly defeated, in consequence of the non-arrival in Australia at due date of the Peninsular and Oriental steamers in eleven out of

A.-No. 1.

twelve months of last year, but in addition, this Colony has been put to an expense of about six thousand pounds on account of demurrage to the Victoria and New Zealand subsidized Mail Steamer, and on account of premiums to vessels to bring on the mails, exclusive of the expense incurred in landing, storing, and reshaping mails at Melbourne. A claim has also been made by the Manager of " The Panama, New Zealand, and Australian Eoyal Mail Company," for compensation on account of the frequent detention of the Mail Steamer between Sydney and Auckland, which has been caused by the delay of the " Peninsular and Oriental Company's " steamers. Ministers respectfully request that this subject may be submitted to the Imperial Government, with a view to allowing this Colony equivalent compensation for the actual additional expense caused to it by the want of punctuality of " The Peninsular and Oriental Company's" steamers; such compensation to be deducted from the amount of subsidies payable to the Imperial Government by this Colony on account of that Company, and to be repaid to the Imperial Government out of the penalties incurred by the Company in each case when its Mail Steamers arrive in Australia after the proper day. Wellington, sth January, 1866. E. W. Stafford.

No. 23. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 6.) Government House, Wellington, Sir, — Bth January, 1866. I have the honor to enclose for your information a copy of a Memorandum which my Responsible Advisers have requested me to forward to you, and which they prepared, in reference to that part' of your Despatch No. 86, of the 26th October last, which relates to the appropriations made by the Colony on account of the Imperial Eorces, and the subject of advances made from the Military chest. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Mr. Stafford, Bth January, 1866.

Enclosure in No. 23. Copy of a Memorandum by Mr. Stafford. His Excellency's Ministers desire to submit some observations on those portions of Mr. Cardwell's Despatch No. 86, of the 26th October last, which refer to the question of an Appropriation by the Colony on account of tho Imperial troops, and to the repayment of advances made from the Military chest. In this Despatch, as in others which have preceded it, many considerations which affect the question have been omitted. It appears desirable, therefore, and indeed necessary to a full comprehension of the subject, that Ministers should review the different circumstances bearing upon it. The question of a contribution by the Colony, to the cost of Imperial troops stationed in New Zealand was first settled, after considerable correspondence, by the Despatch signed by Sir G. Cornewall Lewis, (for the Duke of Newcastle), No. 65, of the 12th September, 1860. In that Despatch, Her Majesty's Government waives certain pecuniary claims, and prefers " reverting to the proposals made by your Advisers, and rendering those proposals the basis of a settlement, both for the past and the future." It is further stated in that Despatch that, "from and after the Ist of April, 1858, Her Majesty's Government accept the proposal made by the Colonial Government of a contribution at the rate of five pounds per man for the troops employed in New Zealand; this concession being understood to include the entire force of officers and men." And again,—" In the present measure, Her Majesty's Government do not confine their view to barracks, but are willing to treat the intended subsidy as the general contribution of the Colony towards the expenses of the Queen's forces supplied for its defence. It must be understood, however, that the arrangement will be open to reconsideration hereafter, and it may be proper to remind you, in case any objection should be raised to the present plan, that the rate of contribution is far less than in the Australian Colonies." In a Memorandum, dated 29th November, 1860, on that Despatch, Mr. Stafford, then First Minister in New Zealand, states: —" This Despatch settles the question hitherto discussed between the Imperial and Colonial Governments as to the liability of the Colony for a share of the cost of the military expenditure." And further, —" Ministers accept the interpretation put on their proposal, as expressed in the last paragraph of this Despatch, viz : —" That the intended ' subsidy of £5 per man is to be treated as the general contribution of the Colony towards the expenses of the Queen's troops supplied for its defence.' " On the 6th September, 1861, the House of Eepresentatives ratified this arrangement by concurring in the resolution of the Committee of Supply —" That this Committee recommend the confirmation of the arrangement entered into between the Imperial and Colonial Governments as defined in Mr. Stafford's Minute of the 3rd September, 1858, and the Duke of Newcastle's Despatch of the 12th September, 1860, which limits the contribution of the Colony towards the cost of maintaining the Imperial troops to the sum of £5 per head for all the troops employed in the Colony." In a Despatch of the Duke of Newcastle, No. 53, 26th May, 1862, His Grace, in consideration of the difficulties of the Colony, and in compliance with the Governor's advice, stated that Her Majesty's 11

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Government was prepared, under certain conditions, to reckon as military contributions all sums shown to be expended in a manner approved by the Governor on Native Government or other purely Native objects, in excess of twenty-six thousand pounds. In September, 1862, after the receipt of this last Despatch, the General Assembly passed the " Native Purposes Appropriation Act, 1862," which granted, from the 30th June, 1862, to the 30th day of June, 1865, a contribution of five pounds (£5) a head towards the expenses of the Queen's forces supplied for tho defence of the Colony; and also the yearly sum of nineteen thousand ponnds (in addition to seven thousand pounds for Native purposes in the Civil List, 1858,) "to be expended for Native purposes in such manner as the Governor shall direct." In commenting on this Act, the Duke of Newcastle, in his Despatch No. 23, of the 26th February, 1863, — '' Observes with pleasure that the Native Appropriation Act appropriates to Native purposes £7000 more than the minimum expenditure required by the Imperial Government," and he suggests some technical alterations in the wording of the Act, which the Legislature forthwith agreed to. On the 19th of August, 1862, the House of Eepresentatives resolved : " That in the opinion of this House the relations between His Excellency the Governor and his Eesponsible Advisers should rest upon the following basis : — " That Ministers should, in conformity with the Eoyal instructions, advise the Governor in Native affairs (as well as in Colonial affairs) whenever His Excellency desires to obtain such advice, and should also tender such advice on all occasions of importauce when they deem it their duty in the interests of the Colony to do so." " That Ministers should, at His Excellency's request, undertake the administration of Native affairs, reserving to His Excellency the decision in all matters of Native policy." " That, as the decision, in all matters of Native policy, is with His Excellency, the advice of Ministers shall not be held to bind the Colony to any liability, past or future, in connection with Native affairs beyond the amount authorized or to be authorized by the House of Eepresentatives." On the 6th November, 1863, the House of Eepresentatives resolved:— " That this House, having had under its consideration the Despatch of Her Majesty's Principal Secretary of State for the Colonies, dated the 26th February, 1863, conveying the final determination of Her Majesty's Imperial Government to revoke the arrangement of 1856, and for the future to require the Colonists to undertake the responsibility of the management of Native affairs, recognizes with the deepest gratitude the great interest which Her Most Gracious Majesty has always taken in the welfare of all races of Her Colonial subjects, and the thoroughly efficient aid which Her Majesty's Imperial Government is now affording for the suppression of the rebellion unhappily existing, and the establishment of law and order in the Colony. " And, relying on the cordial co-operation of the Imperial Government for the future, cheerfully accepts the responsibility thus placed upon the Colonists, and at the same time records its firm determination to use its best endeavours to secure a sound and lasting peace ; to do justice impartially to both races of Her Majesty's subjects, and to promote the civilization and welfare of all classes of the inhabitants of these islands." In the interval between those two dates, the 19th August, 1862, and the 6th November, 1863, — during which the General Assembly, being in recess, had no opportunity of giving its opinion in the matter —the Imperial force stationed in the Colony was doubled, a wide spread insurrection of the Natives had taken place, and a military campaign had been actively entered into, the result of which has already involved the Colony in an expenditure for military purposes of between three and four million pounds sterling. A very large proportion of this expenditure was gratuitously incurred by the Colony in furnishing a most costly steam transport, to enable the Commissariat to suppy the Imperial troops in the AVaikato, who must otherwise have been supplied at the cost of the British Treasury ; the Colony also lent to the Imperial Transport Service numbers of the men raised and paid by it, (at one time nearly 1500 men) and has maintained to the present time a very large naval force employed in operations which would otherwise have to be paid for from the Imperial Treasury chest, which has been correspondingly relieved. The above, amongst many others, are instances, if such were wanting, of the very liberal, indeed, almost unrestricted manner in which the Colony has spent its money in contributing towards the maintenance of the Imperial troops. In May, 1864, a negotiation was initiated between the Secretary of State (Mr. Cardwell) and the Colonial Treasurer of New Zealand, then in England, with respect to obtaining an Imperial guarantee to the Loan of £3,000,000, which the Colony required to raise to enable it to meet the expenses referred to above, which would otherwise have fallen on the Imperial Treasury. Out of this negotiation has arisen the present Imperial claim for a Colonial contribution of £40 a head for infantry soldiers, and £55 a head for artillerymen stationed in the Colony. If a careful consideration is given to the origin and growth of this claim, Ministers cannot believe that it will be maintained. In the letter of Sir Frederick Sogers to the Colonial Treasurer, dated the 26th May, 1864, tho following passages occur : —" lam directed to observe that Mr. Cardwell makes this offer to you as the Finance Minister of New Zealand, in the confident expectation and belief that the recent successes of the Queen's Forces, and of the Colonial Militia and Volunteers, will have placed in the Governor's hands the power of securing a just and permanent peace, and that his own disposition, and the instructions which have been addressed to him from this department, will ensure his using that power for the early termination of the war. It is only under this conviction that the Secretary of State can undertake to submit this proposal to Parliament. " Her Majesty's Government feel themselves imperatively called upon to provide that if, under the New Zealand Government, to whom in ordinary times the management of Native affairs now almost exclusively belongs, the Colony shall again be involved in a civil war, the whole expense of the troops engaged in that war shall not fall upon the mother country." Again: " These measures they (the Imperial Government) regard as just measures of security

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against the risk of war being incurred by Colonial policy, while the principal expenses would fall to be discharged, not by the Colonial but by the Imperial Treasnry." In the reply to this letter, the Colonial Treasurer states, on the 28th May, 1864, while he expresses his own concurrence in the proposals : " I cannot, however, disguise from you the fact that I possess no powers from the General Assembly which will enable me definitely to conclude any arrangement with Her Majesty's Government, in reference to military expenditure, which will not require confirmation and ratification by the New Zealand Parliament." In evidence that in proposing the increased contribution Her Majesty's Government proceeded on the assumption that the war in New Zealand would be closed before the Ist of January, 1865, the date of the proposed commencement of the increased payment, Ministers refer to the following quotations from Hansard's Debates of 1864. Mr. Cardwell, on the 26th April, stated as follows : — " Eeference has been made by my hon. friend to the vast expense incurred by this country in conducting the war. Hitherto, the arrangement between this country and New Zealand has been, that only nominal contribution has been made by the Colonists towards the support of the forces employed for their defence; but hereafter, when the policy of New Zealand chances to entail a war, and she applies for assistance to the mother country, substantial and not nominal contributions will be exacted from the Colonial resources." On the same day, in reply to Lord Eobert Cecil as to another part of his speech, Mr. Cardwell observes — " I am speaking upon a certain hypothesis, which may not turn out true, namely, that the war is at an end before this time. The last accounts lead us to believe that the war, in all probability, is concluded by this time." Again, on the 14th July, 1864, Mr. Cardwell states— " One condition in the new proposal was that this arrangement (£5 contribution) should be put an end to at the close of the current year, and that an actual payment of a substantial amount, should be made. This payment would not only yield a considerable sum to the Imperial Treasury, but it would have a value far beyond its pecuniary amount, because it would place the Colony, as it were, under bail that it would for the future so regulate its policy that there should be no further occasion to send for British troops to protect the lives and property of the Colonists." A perusal of these debates also fully shows that the required payment of the increased contribution was a quid pro quo in return for the Imperial guarantee —in fact part of the price which the Colony was to pay for that guarantee, should it desire to avail itself of it. So much so was that the case that the payment in question was made one of the conditions of the acceptance of such guarantee, and inserted as such in the Imperial Guarantee Act, the Act itself being so framed as expressly to require the action of the New Zealand Legislature before it could take effect. On the 10th of December, 1864, the House of Eepresentatives declined to accept the Imperial guarantee, and passed a resolution to that effect. The resolution was communicated through the Governor to the Home Government in a Memorandum, dated 3rd January, 1865, of the Colonial Ministers, who therein explicitly state that if the terms (as regards the contribution to the troops) imposed by the Imperial Government should be insisted on, the Colony would be wholly unable to bear the burthen, and that financial ruin will be the result. On the 23rd March, 1865, Ministers transmitted, through the Governor, half a million of Colonial Debentures, bearing interest at four per cent., to the Lords of the Treasury, in order to repay the debt claimed from the Colony by the Imperial Government, and contemplated to be repaid out of moneys to be raised under the Imperial guarantee, which, as has been stated above, the Colony did not accept. These Debentures have been accepted by the Home Government, and interest on account of them is in course of payment by the Colony. The order to the Crown Agents for the issue of these Debentures to the Lords of Her Majesty's Treasury was accompanied by a Memorandum by Ministers to the Governor, of which the following is an extract :■ — " The arrangement contemplated by the late Colonial Treasurer (Mr. Eeador Wooco was founded on a supposed guarantee to be given by the Imperial Government for a loan for one million sterling, at four per cent., out of which sum somewhat less than £500,000 was to bo retained by the Imperial Government to liquidate the claims on tho Colony." The exact terms of the arrangement, as proposed by Sir F. Eogers to Mr. Eeader Wood, were:— "That the original guarantee be extended from half a million to one million, of which probably rather less than half will be paid into the Imperial Treasury, and the remainder will be applicable to the purposes of the Colony." If, therefore, the Imperial Government had been pleased to comply with the request in the Memorandum above referred to, —" to cover the Debentures with a guarantee, and realize them in the English money market," it would have done less than was offered by Sir F. Eogers, while, beyond all doubt, it would have realized more than the £500,000 in cash, as is shown by the letter of the Crown Agents to the Colonial Office, dated 26th June, 1865. It is submitted, therefore, that the debt claimed by the Imperial Government ought to be regarded as almost or quite extinguished up to August last. On the 11th July, 1865, the Colonial Ministry, through His Excellency, again communicated with the Home Government on the subject of the increased rate of payment for the Imperial Troops in New Zealand. They remind the Imperial Government that on the 30th December, 1864, they had submitted to it " that it was absolutely impossible for the Colony to increase the heavy war expenditure that already menaced New Zealand with financial ruin," and they fully state the reasons which render them " unable to recommend to the Colonial Parliament an appropriation for the payment per annum of forty pounds per head for Imperial Forces now in the Colony, as claimed by the Imperial Government." The expense of the active Military operations conducted by Her Majesty's Colonial Forces at tho sole cost of the Colony, has imposed an enormous pressure, which has weighed for some time past and will long continue to weigh on Colonial resources. In the efforts recently and still being made on

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the East Coast, for the purpose of suppressing atrocious outrages and of securing peace, the expenditure on this object alone of Colonial funds in relief of what would have been a corresponding charge on the Imperial chest, is going on at the rate of upwards of ten thousand pounds sterling a month; nor have the efforts which the Colony has made been confined to money payments alone, for, in addition to the forces, European and Native, which it has regularly enrolled and paid, a large proportion of the population of the Northern Island, embracing all ages from sixteen to fifty-five, has been called out for active service; even youths of sixteen have died in the field. These exertions, made by an infant Colony, might well claim encouragement and assistance, instead of being met by a demand for additional contributions towards the maintenauce of Imperial troops, when the Colony is exhausted by a long war, still unfinished, for the origin and long continuance of which the Imperial Government cannot be considered exempt, as indeed was admitted by the present Chancellor of the Exchequer in the debate on the New Zealand Guarantee Act, on the 14th July, 1864 (see Hansard's Debates). Mr. Cardwell's hypothesis that the war in New Zealand might have ceased on the Ist of January, 1865, the date on which the increased rate of contribution was to commence, has been contrary to fact. The Taranaki and the Ngatiruanui tribes have for many years committed unceasing outrages, and throughout maintained an attitude of armed rebellion ; and General Cameron was so sensible of the absolute necessity, before any peace could be established, of inflicting signal punishment on these tribes, that he urged at an Executive Council of which he was a member, as stated in his letter to the Governor, of the 15th April, 1861, that he should be allowed to commence a campaign against them. Since that date the murder of the officers and men of the 57th Eegiment, near New Plymouth, and many subsequent murders, have been committed by these Natives, whose country has long been the focus of sedition and fanaticism. The Imperial and Colonial Governments have alike coincided in the belief that they must summarily be chastised. The campaign in the Waikato was ancillary to that end. More recently also the rise and spread of the Hau Hau fanaticism has been accompanied by a series of murders of a most aggravated character, both on the East and West Coasts, which, if unpunished, would speedily render the greater part of the North Island uninhabitable. An important point in the consideration of this question of contribution requires also to be borne in mind. The Military Estimates of Expenditure have not, as it is understood they are required to be, been submitted to the Governor. They have been carried out on a scale of what is considered in the Colony unnecessary magnitude, and the Colony, whose military expenditure has thereby been proportionately increased, has been deprived of the means of exercising that economy in military campaigns which would have taken place had those campaigns been of less extensive proportions, and more adapted to the attainment of decisive results. An attentive consideration of the foregoing summary of facts, will, it is submitted, lead to the following conclusions: — 1. That the original contribution of five pounds a head towards the expenses of Imperial Troops stationed in New Zealand was definitely settled, after mature deliberation, as a fair contribution in a time of peace, when the Colony was, of course, best enabled to make it. 2. That that arrangement was confirmed by the New Zealand Legislature, which at the same time placed a sum of fifty thousand pounds a year, for three years, at the absolute disposal of the Governor, for Native purposes, never contemplating that such an arrangement should be suddenly disturbed by one of the parties to it, and an increased contribution of eight hundred per cent, be demanded from the Colony, when the Imperial garrison was doubled, and when civil war was raging. 3. That the Colonial Legislature, when making every effort in November, 1863, to contribute on the part of the Colony so large a share of the cost of the hostilities which had existed for some months, never anticipated such a change in the existing arrangement, nor such increased demands on the part of the Imperial Government. 4. That the proposal by the Imperial Government of an increased contribution was evidently made on the implied assumption that the war in New Zealand would have terminated before the commencement of the increased rate, and was only intended to be a security in the possible contingency of future wars. 5. That the New Zealand war had not terminated on that date, and has not yet terminated. 6. That the proposal of the increased rate was one of the conditions of the acceptance by New Zealand of the Imperial Guarantee, and expressly stated to be so in the Imperial Act. 7. That the New Zealand Legislature did not accept the Imperial Guarantee on the conditions required. 8. That the debt of half a million claimed from the Colony by the Imperial Government, the payment of which was another of the conditions in question, has been defrayed by the Colony —thus showing every desire on its part to satisfy just claims, even without the Imperial Guarantee. l 9. That the Imperial Government has repeatedly been informed that the increased rate of contribution could not be paid by the Colony ; and that no obstacle has been raised by the Colonial Ministers to the removal of the troops. 10. That the Colony has incurred liabilities to the amount of between three and four millions of pounds sterling, in its military defence, since June, 1863. 11. That the Governor has, in violation of instructions, been precluded from exercising the slightest control over a vast military expenditure of Imperial funds, on which in a great measure hinged the amount of a similar expenditure of Colonial funds. 12. That for the last twelve months active military operations have been and are now being conducted by the Colony at its sole expense, and with its own forces, which obviate the necessity of charges on Imperial funds. 13. That under these circumstances the requirement of the increased rate of contribution ought not to be made on any ground of good faith or of justice ; and should the Home Govern-

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ment arbitrarily insist upon it, it will undoubtedly hereafter be a matter of regret that a great country should have so treated a helpless dependency, already weakened by the efforts it has made and is making for its military defence. Eeturns are appended which illustrate the financial position of the Colony. E. AY. Stafford. Wellington, Bth January, 1866. Sub-Enclosures to Enclosure in No. 23. Statement showing the Revenue of the Colony of New Zealand, for the last financial year, Ist July, 1864, to 30th June, 1865. £ s. d. Ordinary Revenue of the Colony from all sources ... ... ... 738,720 14 3 N.B. —The difference between the Revenue and the Expenditure is made up from the Three Million Loan. Treasury, AVellington, J. AVoodward, 4th January, 1866. Assistant Treasurer. Statement showing the Estimated Expenditure on account of the current Financial Year. £ s. d. Civil List ... ... ... ... ... ... ... 27,500 0 Ov Permanent Charges under Acts of the General Assembly ... ... 12,583 6 8 Interest and Sinking Funds on permanent debts of the Colony ... 207,350 19 6 Expenses of Civil Government ... ... ... £370,690 0 0 Expenses connected with the Native Insurrection ... 416,393 4 0 787,083 4 0 Amount required to meet Liabilities already incurred for arrears of Postal Subsidy, Lighthouses, and Telegraph ... ... ... ... 87,000 0 0 £1,121,517 10 2 Treasury, Wellington, J. Woodward, 4th January, 1866. Assistant Treasurer. Statement showing the Amount Paid as Interest on Advances in anticipation of Revenue, to enable the Colony to meet its engagements. £ s. d. Amount paid during year 1863-4 ... ... ... ... ... 6,832 15 9 Amount paid during year 1864-5 ... ... ... ... 28,618 4 3 Amount paid to 30th September, 1865, on account of year 1865-6 ... 10,920 11 ,8 £46,371 11 8 Treasury, Wellington, J. Woodward, 4th January, 1866. Assistant Treasurer.

Statement showing the Expenses of Special Steam Transport of Colonial Forces, forming the East Coast Expedition. £ s. d. Charter of s.s. " Storm Bird," Wanganui to "Wellington, 23rd September, 1865 ... ... ... ... ... ... ... 220 0 0 Passage of 2 officers and 39 rank and file, "Wellington to Napier, per " Lord Ashley," 24th September ... ... ... ... 93 15 0 Passages and rations for officers and men, from Wanganui to Opotiki, per "Storm Bird" ... ... ... ... ... ... 917 1110 Passages and rations for officers and men from "Wanganui to Opotiki, per "Ahuriri" ... ... ... ... ... ... ... 995 14 0 Passages and rations for officers and men from Wanganui to Opotiki, per "Lady Bird" ... ... ... ... ... ... 1,224 19 8 Detention of steamersat Wanganui ... ... ... ... 840 0 0 . Passages of officers and men of Forest Eangers, per " Wanganui," to Wanganui ... ... ... ... ... ... ... 00 13 0 Charter of " Storm Bird," Napier to Wellington, 22nd November ... 760 0 0 Rations for men while on board " Storm Bird" ... ... ... 51 9 6 Detention of steamer ... ... ... ... ... ... 80 0 0 i _________ £5,244 3 0 Treasury, Wellington, .T. Woodward, 4th January, 1866. Assistant Treasurer. 12

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Statement of Sums expended on account of the Native Insurrection between the Ist day of April, 1860, and the 30th day of September, 1865; together with Liabilities incurred on the same account to the present time. Amount charged on Loan of 1860— £ s. d. Expenditure in terms of Schedule to Loan Act ... ... ... ... 148,424 16 1 nt charged on Loan of 1863—■ £ s. d. Colonial Forces, Sea and River Services, Blockhouses. &c. ... 1,199,035 10 2 Payment to Imperial Government on account of Troops, Rations, Advances, Ac. ... ... ... ... 500,000 0 0 1,699,035 10 2 Military Settlers ... ... ... ... ... 70,526 11 7 Surveys and AVorks in connection with Military Settlers ... 183,278 11 4 Location of Military Settlers, and incidental expenses of Settlement ... ... ... ... ... ... 60,795 7 4 Compensation to Natives for portions of the Land ... ... 6,993 10 10 321,594 1 1 Reinstatement of Taranaki ... ... ... ... . ... 147,312 17 0 Charges on negotiation of Loan, and discount on Debentures ... ... 205,731 411 Advances to meet Expenditure on account of the above — Colonial Forces, Ac, Ac. ... ... ... ... 36,715 19 8 Military Settlers ... ... ... ... ... 561 10 6 Surveys and AVorks in connection with Military Settlers ... 6,807 17 3 Location of Military Settlers ... ... ... ... 7,966 5 4 Compensation to Natives for Land ... ... ... ' 5,794 0 0 Reinstatement of Taranaki ... ... ... ... 514 19 7 58,360 12 4 Liabilities on account of the above falling due in the current year —■ Colonial Forces, Transport, Blockhouses, Ac. ... ... 300,254 11 0 Military Settlers ... ... ... ... ... 10,500 0 0 Works in connection with Military Settlers ... ... 5,500 0 0 316,254 11 0 Further Liabilities on above account after expiry of current year — say ... ... 500,000 0 0 £3,396,713 12 7 Treasury, AVellington, J. Woodward, 4th January, 1866. Assistant Treasurer.

STATEMENT showing the existing EXPENDITURE for Purposes of COLONIAL DEFENCE.

Description of Force. Districts where employed. (j 6 A to Monthly Expenditure, including forage and rations. Per Month. Per Annum. Remarks. llitarv Set tiers Waikato and Tau1091 £ s. d. 6,609 0 10 £ s. d. £ s. d. Pay only. Must be retained on pay for at least six months longer. Including 380 women and 1008 children, at Is. 6d. per ration for twelve months, and half that sum for six months in addition. Pay and rations. .Expected to be off pay on 31st March, and then entitled to twelve months' rations. Pay and rations. Expected to be off pay on 31st January, and then entitled to tweb-e months' rations. Ditto. Ditto. ranga Rations for ditto 2315 6,543 14 3 Taranaki... 480 4,196 10 0 White Cliffs 146 966 14 8 Opotiki ... AVaiapu ... 373 154 ( 51 _ and (li3,357 19 6 1,264 14 6 I 132 10 6 1,050 0 0 "Women and Chili dren at Taranaki Rations only. Hospitals 24,121 4 3 289,454 11 0 Pay and rations. Ditto. Forest and Bu<h Rangers Waiapu ... Wanganui es 33 558 8 9 336 7 0 894 15 9 10,737 9 0 race Force ... Auckland \\ airarapa Poverty Bay Opotiki ... 26 27 27 53 210 4 2 370 9 0 354 19 4 519 15 6 3 - No rations. -Cai-ri 17,464 16 0 Pay and rations. 1,455 8 0 icd forward

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LIABILITIES and NECESSARY EXPENDITURE.

Statement, ;c. — confinui Description of Force. Districts where employed. a) z A I to Monthly Expenditure, including forage and rations. Per Month. Per Annum. Remarks. £ s. d. £ s. d. £ s. d. Brought Volunteers forward ... Poverty Bay Opotiki 53 5 554 9 6 78 4 6 Ditto. Ditto. Native Allies ... 632 14 0 7,592 8 0 Opotiki ... White Cliffs ... Wanganui 132 104 72 1,208 8 0 439 11 2 598 6 0 Ditto. Ditto. Ditto. Friendly Natives 406 17 6 357 15 0 2,240 5 2 26,955 2 0 Waiapu ... Wanganui 150 Rations only. Ditto. Militia & Mounted Volunteers 529 0 0 761 12 6 9,175 10 0 Taranaki... 36 Pay and rations. Militia Staff ... A uckland Taranaki Wanganui Rangitikei Wellington Napier Nelson ... Marlborough Canterbury Otago Southland 77 5 0 529 0 0 6,348 0 0 Included in Military Settlers. 118 10 0 48 1 0 65 2 0 83 0 0 53 10 6 41 17 0 35 13 0 63 1 6 39 9 0 .tcamcrs "St. Kilda" ["Sturt" "Gundagai" ."Moutoa" J Superintendent of I River Transport 300 0 0 300 0 0 80 0 0 625 9 0 7,505 8 0 'Paid by Commissariat. The amount paid does not quite clear working expenses. This day (January4th, 1866) a sum'of £212 14s. 3d. has been ordered to be paid for repairs of one of these vessels. 680 0 0 8,160 0 0 Colonial Defence Department— Hon. Defence Minister Under (Secretary Clerks ... " - Messenger... 83 6 8 50 0 0 116 13 4 8 6 8 3,100 0 0 Rations to .Arawa Tribe ... Special Service — Subsidy to New Zealand Steam Navigation Company (Raglan and Manukau) 800 0 0 95 0 0 258 6 8 800 0 0 9,600 0 0 C In addition to this, a subsidy \ of £50 per month is being 1 paid for a special service to v. Tauranga. 95 0 0 1,655 0 0 1,140 0 0 19,860 0 0 Contingencies ... id by 31st Dece 34,757 15 4 417,093 4 0 Liabilities for which payment must be provide Necessary Expenditure to 31st December, 186i •ember, 1865... 17,100 0 0 9,700 0 0 Total Expenditure for purposes of Colonia il Defence to 3( 10th June, 1866 443,893 4 0 Amount as above ■Steam Service to Tauranga £443,893 4 0 600 0 0 £444,493 4 0

MISCELLANEOUS. Liabilities for which payment must be provided before the end of December, 1865— Roads —Auckland „ Taranaki Timber —Military Settlers in Waikato 1'assages—Families of Military Settlers ... Blockhouses —Auckland aud Taranaki Total Amount. £ s. d. 2,000 0 0 3,500 0 0 10,000 0 0 500 0 0 1,100 0 0 Total 17,100 0 0 • Necessary Expenditure to 31st December, 1865— Blockhouses—-Taranaki and Wellington ... Stores—At various places ... ... ... Transport—Troops, baggage, &c. 'Tents and camp equipage Clothing 3.500 0 0 500 0 0 3,000 0 0 700 0 0 2,000 0 0 Total £9,700 0 0 £9,700 0 0 Total Miscellaneous ... £26,800 0 0 £26,800 0 0 23rd October, 1865. T. M. Haultaik

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STATEMENT of ACCOUNT between the IMPERIAL GOVERNMENT and the Colony of NEW ZEALAND, from the documents at present in the possession of the Colonial Government.

Dit. £ s-. d. £ s. d. 'o " Error admitted " (vide Appendix House of Eepresentatives, 1863, page 7, B.—No. 1) 85,S91 10 I hntributions on account of Her Majesty's Troops — Eemitted for the three months ending 31st March, 1862 Eemitted for the year ending 31st March, 1863, (say) Eemitted for the year ending 31st March, 1864 .... Eemitted for the nine months ending 31st December, 1864 ... 6,929 13 26,175 16 33,906 6 38,157 4 9 8 8 0 \ [Note.—The Imperial claim of £5 per man for Troops, remitted from 1st January, 1862, to 1st January, 1S65. See Appendix House of Eepresentatives, page 3, B.—No. 7.] 107,169 1 1 'roportion of Transport Service on the Waikato, and other claims (say)... 80,000 0 t> t . 273,060 11 503,406 3 5 2 Estimated Balance due to Imperial Government £776,166 14 7 Dates when Account rendered. Ce. £ s. d. £ s. d. 1861 May 17 June 7 „ 11 Aug. 7 By accounts rendered to Colonial Secretary... Ditto ditto ditto Ditto ditto ditto By accounts rendered to Assistant Military Secretary 53,183 1 4 15,192 6 11 25,868 15 0 12,959 13 1 Deductions amounting to £107,203 16 2,238 16 4 7 j Nov. 25 1862 March 20 May 9 Aug. 11 Sept. 2 and By accounts rendered to Assistant Military Secretary 104,961 19 9 18,731 5 0 Ditto ditto ditto Ditto ditto ditto Ditto ditto ditto By accounts rendered to Private Secretary, including the difference between the Commissariat Statements and Treasury Minute of 29 October, 1861 Ditto ditto ditto 7,386 13 11 35,729 13 1 2.011 5 s ]. J 100,807 4 11 Dec. 11 Nov. 4 4,494 5 5 1863 April 15 By contribution on account of the Imperial Troops, from 1st April, 1862, to 31st March, 1863, &c... £271,125 7 9 1864 May 5 28,175 16 S By advances from Imperial Chest, August to December, 1863 By contribution, H.M. Troops, from 1st April, 1863, to 31st March, 1864 ... By rations issued to Colonial Forces, December, 1863, to March, 1864 By cost of implements issued from Military Store ... By rations issued to Colonial Forces at Tauranga, February, 1864 Ditto ditto April, 1864 Ditto ditto Port Waikato Ditto ditto 186,000 0 0 33,906 0 8 38,721 14 0 425 10 1 Nov. 12 Nov. 29 307 12 S 9,458 16 4 541 17 8 8,541 6 5 1865 Jan. 25 Ditto ditto at Te Awamutu Ditto ditto June, 1864 Ditto ditto July, 1864 Deduct 1,142 0 4 8,78? 11 2 March 3 13,992 19 205 12 2 3 13,787 6 11 ■ried forward ... ... ... ... ... „

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* The Colonial Government is in possession of no information by which the discrepancy between the claims as stated by the Commissariat Department, and the claims as rendered by the Imperial Treasury, can bo explained. On reference to the Appendix to the Journals of the House of ilepreseutativos for tho year 18G3, p. 7, B. No. 4, it will be seen that the sum of £271,125 7s. 9d. is made up as follows : — £ b. d. Treasury Minute, 24th May, 1862 ... ... ... ... 193,180 5 6 Local Forces—Pay, Rations, &c, to 30th June, 1862 ... ... 17,394 4 5 Do. do" do. to 30th September, 1562 ... . 4,452 4 3 H. M. Troops—Contribution for year ending 31st March, 1862 ... 27,718 15 0 Koad-making, to 30th June, 1862 ... ... ... ... 31,337 17 5 Do. . to 30th September, 1862 ... ... ... 4212 £274,125 7 9 On comparing this statement with the one preceding it on tho same page of the Appendix, it seems probable that the Treasury Minute of the 24th May, 1862, includes tho claims for "Fencibles," the steamers " Wonga Wonga," &c, amounting to £85,891 10s. 4d. This sum the Commissariat Officer states to be an " admitted error," although lie includes it now in bis Statement of Accounts. The apparent overcharge is debited the Imperial Government in the present statement. Charles Kkight, August 10th, 1865. Auditor of Public Accounts.

No. 24. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 7.) Government House, Wellington, Sir, — Bth January, 1866. In compliance with the recommendation of my Responsible Advisers, I have the honor herewith to transmit a Petition from the Auckland Provincial Council to Her Most Gracious Majesty the Queen, praying that the Northern portion of these Islands may be constituted a separate Colony, under a Constitution calculated to establish and maintain peace, order, and good Government. 2. My Responsible Advisers, in transmitting the Petition to me, have not made any remarks upon it. I have, &c., The Right Hon. Edward Cardwell, M.P. G. GREY.

Mr. O'Rorlco, 23rd December 1865.

Enclosure in No. 24. Mr. O'Rorke to the Governor. Sir, — Auckland Provincial Council Chambers, 23rd December, 1865. I have the honor to forward herewith a Petition from tho Auckland Provincial Council, to Her Majesty the Queen, praying that the Northern portion of the Colony of New Zealand may be constituted a separate Colony, and request that your Excellency will be pleased to transmit the same to the Right Honorable the Secretary of State for the Colonies for presentation to Her Majesty. I have, Ac, His Excellency Sir George Grey, K.CB. G. Maurice O'Rorke, Speaker. 13

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iTATEMEXT, ;c.— can, Liimei Sates when Account rendered. Cb. £ s. d. £ s. d. 1865 April 6 „ 2(5 May 30 June 12 July 26 Brought forward... Ditto ditto September, 1864 ... Ditto ditto October, 1864 Ditto ditto Ditto ditto December, 1861 ... Ditto ditto Ditto ditto March, 1865 By contribution, BLM. Troops to 31st March, 1865... By pay of Colonial Forces, from 1st March to 30th June, 1865 By supplies from Military Store aud Purveyor's Department 24,288 2 5 12,912 16 7 141 15 11 18,186 0 4 15,651 6 10 8,232 18 7 50,876 5 0 6,283 0 5 977 6 10 Total, Claims rendered ... Add Estimated Claims outstanding £741,466 14 35,000 0 7 0 £776,466 14 7

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Sub-Enclosure to Enclosure in No. 24. To the Queen's Most Excellent Majesty. The humble Petition of the Provincial Council of the Province of Auckland Sheweth, — That a General Election has recently taken place of Members to serve in the Council of the Province of Auckland. That Petitions from the late Council of the said Province from the Members of the General Assembly elected for districts within the Province of Auckland, and from more than nine thousand of the Northorn Settlers, have been addressed to your Majesty, praying that the Islands of New Zealand may be divided into two separate Colonies. That His Excellency Sir George Grey, the present Governor of New Zealand, has advised in reference to the prayer of the said Petition, " That unless some such arrangement is carried out it will be impossible to bring to a satisfactory termination the difficulties prevailing in the Colony." That an Act has recently been passed by the General Assembly, giving to the Southern Island a majority of votes in the House of Representatives; and that the Southern members have also a majority in the Legislative Council. That the inhabitants of the Southern Island practically are not liable to military service in the Northern Island; and that they are not exposed to the dangerous consequences of a Maori war. That the two races of your Majesty's subjects in the Northern Island of New Zealand may be involved in a war more wide spread and disastrous than any war by which New Zealand has yet been afflicted by the legislation of the peo2ile of another Island, who are ignorant of Native affairs, who are personally secure from the dangers of war, and who have comparatively but little interest in the maintenance of peace. Your memorialists, therefore, pray that they may no longer be subject to Southern legislation > that they may have conferred upon them the power of local self-government, by the erection of this Northern portion of these Islands into a separate and independent Colony, under a constitution calculated to establish and maintain peace, order, and good government in the country. And your petitioners, as in duty bound, will ever pray. G. Maurice O'Rorke, Speaker.

No. 25. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 8.) Government House, Wellington, Sir,— 9th January, 1866. I have the honor to transmit herewith, for the purpose of being laid before the Queen, the Acts passed during the last Session (1865) by the General . Assembly of New Zealand, together with a report upon them by my Responsible Advisers. I have also the honor to enclose copies of Private Acts passed during the same Session. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Air. Stafford, Bth December, 1865.

Enclosure in No. 25. Copy of a Memorandum by Mr. Stafford on Acts passed by the General Assembly, in the Session of 1865. His Excellency's Advisers submit, for transmission to the Right Honorable the Secretary of State for the Colonies, authenticated copies, under the Seal of the Colony, of the Acts passed by the New Zealand Legislature in its recent Session, with observations, explanatory of the object and character of these Acts. Wellington, Bth December, 1865. E. AY. Stafford. Synopsis of the Acts of 1865. No. 1. The Indemnity Act, 1865.—Proceedings having been commenced and threatened against persons in Her Majesty's Military and Civil Service in the Colony, for acts done in the suppression of the Native Insurrection, this Act was passed for the indemnity of all persons so engaged. No. 2. The Arms Continuance Act, 1865, is the usual Act to continue " The Arms Act, 1560," as amended by " The Arms Continuance Act, 1861." No. 3. The Leases and Sales of Settled Estates Act, 1865. —The rapidly altering circumstances of different localties in the Colony frequently rendering leases, exchange and sales of Settled Estates, beneficial to persons interested therein, this Act was passed to enable the Supreme Court of the Colony to empower trustees, not otherwise authorized, to let on lease and sell or exchange Settled Estates. It repeals the 32nd Henry VIII., c. 28.

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No. 4. The District Courts Act Amendment Act, 1865.—This Act was past to facilitate and render efficient the proceedings of any District Court established under " The District Courts Act, 1858," holding sittings in more than one place and to improve the practice of such Courts. No. 5. The Otago Provincial Public Offices Site Trusts Act, 1865," enables the surrender to Her Majesty, by the Superintendent of Otago, of a portion of the Dunedin Post Office Reserve, for the purpose of widening the street opposite the Post Office. No. 6. The Panama Mail Service Act Amendment Act, 1865. —This Act was passed to ratify the arrangements made with a view to establishing a Postal Service with Great Britain via Panama, and to indemnify the officers of the Government concerned therein, and to give the requisite powers to confirm and carry into effect those several agreements ; and also to empower the Governor in Council to agree with the Company for further modifications of contract; and with the Governments of other Australian Colonies, the Imperial Government, and any Foreign Government, for admitting any of them to share in the contract, and for regulation of postages, with the consent however of the Government of New South Wales, so long as that Colony shall participate in the contract. No. 7. The Armitage Pension Act, 1865, provides a terminable annuity of £150 per annum for the widow and children of the late James Armitage, a Resident Magistrate, who was killed by rebels when in command of an armed body of friendly Natives engaged in transporting supplies for the use of Her Majesty's Forces. No. 8. The Audit Act Amendment Act, 1805, provides for the publication of Quarterly Statements of the Public Accounts of the Colony ; further defines tho form in which public accounts are to be annually prepared, audited, and presented to Parliament; establishes further duties on the part of the Auditor, and increases the salary of the office to £800 per annum. No. 9. The British Companies Act, 1865, was passed to facilitate the carrying on of business in the Colony by Companies incorporated in Great Britain, and removes certain difficulties of proof of incorporation. , No. 10. The Commencement of Acts Act, 1865, defines the time when Acts of the General Assembly, assented to by the Governor on behalf of Her Majesty, and which do not prescribe such time, shall come into operation. No. 11. The Native Rights Act, 1865, was passed to remove doubts respecting the legal status of persons of the Maori race ; directs that every person of that race within the Colony shall be deemed to be a natural-born subject of Her Majesty ; declares that the Supreme Court and other Courts of Law have jurisdiction touching the property real or personal of the Maori people; provides that certain interests in land, over which the Native title shall not have been extinguished, should be determined according to ancient custom and usage, and requires the Judge of the Supreme Court, before whom any action shall be tried involving any such title or interest, to refer any issue or issues of fact or Maori custom to be tried in the Native Lands Court. No. 12. The Native Commission Act, 1865, is the complement to No. 11, and passed as a step towards conferring upon the aboriginal inhabitants of New Zealand the rights and privileges of naturalborn subjects of Her Majesty within the Colony. No. 13. The Parliamentary Privileges Act, 1865, was passed to assimilate the privileges, immunities, and powers of the Legislative Council and House- of Representatives of the Colony, and the Committees and Members thereof respectively, with those of the Commons House of Parliament of Great Britain and Ireland, and the Committees and Members (subject nevertheless to the unrepealed provisions of the Constitution Act) thereof. No. 14. The West Coast Gold Field Provincial Representation Act, 1865. —The recent discovery of gold diggings on the West Coast of the Middle Island in the Province of Canterbury, having occasioned a large influx of persons engaged in gold mining, this Act was passed to authorize the return to the Provincial Council of Canterbury of two Members as Representatives of the West Coast Gold Fields under "The Miners' Representation Act, 1862," and " The Miners' Representation Act Amendment Act, 1863," as a temporary measure. No. 15. The Wellington Hospital Reserves Act, 1865.—The lands called the Wellington Hospital Reserves having been granted to the holders of certain public offices, some of which have been abolished, this Act vests these Reserves in the existing trustees, and provides for the appointment of their successors. No. 16. The Diseased Cattle Act Amendment Act, 1865.—" The Diseased Cattle Act, 1861," authorized the establishment of Regulations controlling or prohibiting the importation of Cattle into any Province or district of the Colony from other Colonies, and from other Provinces in this Colony, and for other purposes connected with the importation of Cattle, but omitted to provide for the annulling, altering, or varying such Regulations. This Act was passed to supply the deficiency, and to validate certain Orders in Council and Proclamations previously issued. No. 17. The Public Domains Act Amendment Act, 1865, was passed to enable the Governor to do the requisite acts to ascertain the compensation for part of the Public Domain taken for the Auckland and Drury Eailway, and to vest such land in the Superintendent acting under " The Auckland and Drury Eailway Act, 1865," and authorizes the persons to whom the powers conferred by " The Public Domains Act, I860," may with respect to the Auckland Domain be delegated, to make bye-laws, with penalties, for preserving the said Domain. No. 18. The Marine Board Act Amendment Act, 1865, was passed to vest in the Governor and to enable him by Order in Council to delegate the powers which by the unrepealed sections of " Tho Marine Board Act, 1863," and " The Steam Navigation Act, 1862," and this Act, are given to him, and to vary the distribution of powers under those Acts between the Governor and the

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Superintendents of Provinces; vests in the Governor the power to define limits of ports, fix and levy port charges, appoint harbour masters, define their duties, appoint pilots, exempt from pilotage by Order in Council, to define pilot charges for delay on board, establishes fees for certificate of exemtion and renewal thereof, and authorizes Superintendents to levy port charges and license watermen. No. 19. The Howard Pension Act, 1865, raised the pension to William Lott Howard, a retired officer of the Civil Service. No. 20. The Legislative Council Quorum Act, 1865, enables the Legislative Council from time to time to determine the number of its quorum, and repeals so much of the 29th Section of the Constitution Act as limits the number. No. 21. The Injuries by Dogs Act, 1865, provides further remedies to persons injured by dogs. No. 22. The Railway Offences Act, 1865, creates certain felonies and imposes certain penalties for offences tending to the injury of persons travelling upon railway or railway property, and otherwise connected with railways. No. 23. The Outlying Districts Police Act, 1865, enables the Governor by Proclamation to call upon the Chiefs and other inhabitants of outlying districts to aid in the arrest of criminals under certain circumstances. In cases of default districts may be proclaimed in which the Governor may take lands which shall become demesne lands of the Crown, and may be sold saving the rights of innocent persons. Directs the application of moneys arising from sales in compensation to injured persons, to defraying-expenses of prosecuting the crimiuals, salaries of magistrates and police, and of hospitals, within the district. Enables Natives, with the Governor, to dedicate lands for payment of salaries of magistrates and police, and erecting buildings for the police, and for the administration of justice and for hospitals, and contains provisions relative to the appointment of trustees of such lands, and other powers. No. 21. The Religions Charitable and Educational Trusts Act Amendment Act, 1865, removes certain doubts respecting the legal status of the Diocesan Synod of the branch of the United Church of England and Ireland in New Zealand; brings them within the meaning of " The Eeligious Charitable and Educational Trusts Act, 1856," and gives to the trustees of land in trust for any Diocesan Synod, certain powers of sale, exchange, investment and leasing, makes their receipts effectual discharges, and each trustee liable only for his own receipts. No. 25. The Maori Funds Investment Act, 1865, provides for the investment and application of moneys payable by the Crown to Maoris under legal disability, and authorizes the Governor by Order in Council to appoint trustees of moneys so payable. No. 26. The Mining Companies Limited Liability Act, 1865, extends the principle of limited liability to the operations of Companies formed for mining purposes. No. 27. The Private Estates Bills Act, 1865, was passed to enable the Legislative Council to refer Private Estate Bills to a Judge of the Supreme Court for certificate of their reasonableness. No. 28. An Act to amend the laws relating to Building and Land Societies, enables advances to be made on security of shares held by members, varies the powers of Committees, and secures the revision of Eules of these Societies. No. 29. The Mayne Pension Act, 1865, explains itself. No. 30. The Prisoners Removal Act, 1865, facilitates the removal of prisoners confined in any gaol or hulk within the Colony to any other gaol or hulk in New Zealand. No. 31. The Deeds Registration Amendment Act, 1865, contains provisions for registering Crown grants before delivery, powers of attorney, authorizing dealings with land, and certified copies of deeds already registered. No. 32. The New Plymouth Exchanges Commission Act, 1865, authorizes the Governor to appoint Commissioners, and otherwise provides for carrying into effect certain exchanges of land which had been ineffectually dealt with under certain Ordinances of the Superintendent and Provincial Council of Taranaki. No. 33. The Hawke's Bay Military and Colonial Defence Corps Settlement Act, 1865, was passed to enable the Superintendent of the Province affected by it to locate Military Settlers in that Province. No. 34. The New Provinces Act, 1865, prohibits the formation of any new Province in the Colony, unless by special Act of the Legislature. No. 35. The Practitioners Amendment Act, 1865, extends the classes of persons who may be admitted to practise as Barrister or Solicitor of the Supreme Court. No. 36. The Provincial Constabulary Act, 1865, extends to Superintendents, within their Provinces, the power of embodying a Police Force. No. 37. The Electric Telegraph Act, 1865, authorizes the Governor to establish series of communication by electric telegraph throughout the Colony, across Cook's Straits and Foveaux Straits. Gives the powers requisite for the formation and management of such lines, and establishes certain penalties for offences connected therewith. No. 38. The Distillation Prohibition Ordinance Amendment Act, 1865, enables the Governor in Council to make regulations for licensing Distillers within tho Colony. No. 39. The Provisional Jury List Act, 1865, is intended to remove an inconvenience arising from the absence of Jury Lists between annual periods appointed for their preparation. No. 40. The Post Office Savings Bank Act, 1865, makes Post Offices available as Banks for small savings, and gives to depositors the direct security of the Colony for the amount of their claims. No. 41. The Gold Fields Act Amendment Act, 1865, contains provisions for improving and facilitating the administration of justice in the Gold Field districts. Extends facilities and further regulates the construction of mill-races, and gives to the Governor certain powers for the encouragement of

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bridge building and house building, pasturage of lands, cancelling depasturing licenses, mining leases. No. 42. The Lost Licenses and Leases Act, 1865, provides a remedy in the cases of depasturing licenses or leases accidentally lost. No. 43. The Provincial Councils Powers Extension Act, 1865, enables Provincial Councils to make laws affecting Eoads over Crown Lands, or affecting drains or beds of creeks, rivers, ponds, or lakes. No. 44. The Provincial Corporation Act, 1865, authorizes Provincial Councils to create Corporations, Municipal or otherwise, and validates Acts or Ordinances of Provincial Councils passed for this purpose. No. 45. The Masters and Apprentices Act, 1865, with certain exceptions, assimilates the law relating to Masters and Apprentices with the law of England; makes certain beneficial regulations for apprenticing children between the ages of 14 and 19 years, especially affecting children without natural protectors ; and provides penalties for breach of the contract of apprenticeship. No. 46. The Debtors and Creditors Act Amendment Act, IS6s.—This Act was passed to further amend the law of Debtor and Creditor. It makes a bankrupt of every man who compounds with his creditors so as to bind non-assenting creditors ; gives jurisdiction in bankruptcy to District Courts, subject to appeal; enlarges the powers and duties of sequestrators ; authorizes appointment of Inspectors in Bankruptcy ; enforces, by penal clauses, the rigid performance of the duties of sequestrator or trustee ; subjects their accounts to inspection ; enables the Governor in Council to frame regulations for the management of sequestered estates, under penalties not exceeding £100 ; and imposes additional fees on every estate subjected by this Act, of £5 per centum up to £500, and £2 per centum on all excess over £500. No. 47. The Nixon Pension Act, 1865, grants a pension to the sisters of the late Colonel Marmadukc George Nixon, Commandant of the Colonial Defence Force, who died of wounds received in action. No. 48. The Hawke's Bay Waste Lands Regulations Amendment Act, 1865, varies the mode of disposing of the Waste Lands of the Crown in the Province of Hawke's Bay, and directs the classification of hitherto unsold lands. No. 49. The Canterbury Waste Lands Act, 1865, facilitates the sale of Crowu Lands in the Southern and Western parts of the Province of Canterbury, and provides for dealing with lands withdrawn from the Canterbury Gold Fields. No. 50. The Bailors of Sheep and Cattle Protection Act, 1865, authorizes the filing of contracts of bailment of sheep and cattle with the Registrar of the Supreme Court, and regulates the fees for searches, and copies thereof. No. 51. The Petty Sessions Act, 1865, from and after such time as may be fixed by the Governor in Council, establishes Courts of Petty Sessions, enforces upon Justices of the Peace the duty of attending them, and directs the mode in which the business of the Courts shall be conducted, and gives to these Courts jurisdiction in civil cases up to £20. No. 52. The Militia Act, 1865. No. 53. The Volunteer Act, 1855. —These Acts were passed to consolidate and amend the laws relating to the Militia and A Tolunteer Forces. They increase the powers of the Governor, and provide for the better organization, pay, and discipline of these forces. No. 54. The New Zealand Loan Act, 1865, varies the provision made for payment of interest and repayment of principal of money of the loan authorized by " The New Zealand Loan Act, 1863," authorizes the Governor to sell the Bonds or other securities under that Act at any price he may think fit, and limits the period at which such Bonds may be made payable to a time not more than thirty years after their date. No. 55. The Otago Municipal Incorporations Empowering Act, 1865. —" The Otago Municipal Incorporation Ordinance, 1865," passed by the Otago Provincial Council, having created a corporation for the City of Dunedin, and provided for the incorporation of the inhabitants of other towns in that Province, this Act was passed to validate the Ordinance and confer extensive powers on such Corporations for sanitary and other purposes connected with the improvement, protection, and convenience of the towns incorporated. No. 56. The Intestate Estates Act, 1865. —This Act was passed to reduce into one the Ordinances and Acts relative to the administration of the Estates of Intestates, and to make further provision for the administration of such estates. No. 57. The Protection of Certain Animals Act, 1865, provides for the protection of certain animals and birds, and the regulation of the periods during which they may be lawfully killed. No. 58. The Debentures Act 1864 Amendment Act, 1865, extends to the 31st December, 1868, the period at which the Debentures authorized by the Act of 1864 may be made payable, authorizes their renewal, and limits the amount to be existing at any one time to £1,000,000. No. 59. The Southland Waste Lands Act, 1865, repeals the existing law, and makes other provisions for the sale, letting, disposal, occupation, and use of the Waste Lands of the Crown in the Province of Southland, and makes provision for the rights and liabilities of former purchasers. No. 60. The Taranaki Naval and Military Settlers Act, 1865, was passed to put an end to the opportunities of Naval and Military Settlers obtaining, upon retirement within the Province of New Plymouth, free grants of laud in that Province. No. 61. The Miners Representation Act Amendment Act, 1865, gives to Miners in certain cases the right of voting for Members of the General Assembly and Provincial Councils. No. 62. The Volunteers Land Act, 1865, enables Superintendents and Provincial Councils to authorize certain remissions on the purchase of land by Volunteers and Militia men. No. 63. The Provincial Lawsuits Act Declaratory Act, 1865, limits the remedy for creditors upon judgments against Superintendents of Provinces to money appropriated for the purpose by the Provincial Councils. 14

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No. 64. The Wellington Supreme Court House Site Act, 1865, enables the Trustees of the Scotch Church Reserves in Wellington, to carry into effect an agreement with the Superintendent for the conveyance to him of twenty feet of the frontage of that reserve, required for the Supreme Court and buildings connected therewith. No. 65. The Crown Lands (Nelson) Leasing Act, 1865, authorizes the substitution of Leases in place of Licenses for pasturage of Crown Lands in the Province of Nelson. No. 66. The New Zealand Settlements Amendment and Continuance Act, 1865, extends till the 3rd December, 1867, the power of the Governor to proclaim Districts, and reserve land for settlement in districts forfeited for insurrection, and renders perpetual in all other respects the Act of 1863, authorizing such forfeitures as amended by an Act of 1864. This Act also extends the Governor's powers in reference to compensation claims and grants to military settlers, and subjects the money to arise from the sale and disposal of land, under the provisions of these Acts, to the unrestricted appropriation of the General Assembly. A copy of this Bill, as originally introduced into the General Assembly, was forwarded to the Secretary of State for the Colonies, with a memorandum from Mr. Weld, in August last. His Excellency's present advisers concur in the reasons given therein, showing the necessity for some such Act as that now transmitted. No. 67. The Naturalization Act, 1865, gives to certain aliens within the Colony the rights of natural born subjects of Her Majesty. No. 68. The Southland Provincial Debt Act, 1865, provides for the examination and settlement of the Debts of the Province of Southland ; charges the interest and principal thereof upon the ordinary revenue of the Colony ; and to meet these liabilities impounds the Land Revenue of the Province, and places the regulation of the sale of its AA raste Lands in the hands of the Governor, with a saving of existing securities. This Act also contains a general clause, restraining for the future Superintendents and Provincial Councils from raising loans unless previously sanctioned by the Genera] Assembly. This clause will have a most beneficial operation in regulating the finances of the Colony, and will improve the credit of its existing securities. No. 69. The Loan Allocation Act, 1565, defines the amounts, interest, and mode of repayment of the various sums expended in tho Provinces of Auckland, AVellington, Hawke's Bay, and Taranaki, under the authority of " The New Zealand Loan Act, 1863," " The Debentures Act, 1864," and " The Loan Appropriation Act, 1863." No. 70. The Representation Act, 1865.—This Act increases to seventy the number of members of the House of Representatives ; annuls certain Electoral Districts and creates new ones. No. 71. The Native Lands Act, 1865, amends and consolidates the laws relating to lands in the Colony, in which Maori proprietary customs still exist; makes provision for the ascertainment of Titles to such lands, and for regulating the descent thereof, and leases and sales thereof. It establishes a Native Land Court for the investigation of Titles, authorized to try questions upon such investigations by Jury of Maoris or Englishmen ; upon determination thereof to grant certificates of title ; to determine the descent of lands of Natives dying without having disposed thereof; by consent of tribes, and with the approval of the Governor, to define inter-tribal boundaries; to try actions or issues relating to Native lands or customs, referred by order of the Supremo Court, the decision whereupon shall be received as authoritative by the Supreme Court. The Governor is authorized to grant to the persons whose title is certified by the Court the lands comprised in such certificate, with such, if any, restrictions upon the alienability as may be recommended by the Native Land Court, and to grant to purchasers from Natives under the provisions of the Act, the land so purchased. The machinery provided by this Act will be an important step towards vesting in the aboriginal inhabitants those individual rights to property in land which in other countries form the best guarantee for peaceful and orderly conduct. No. 72. The Wellington Waste Lands Amendment Act, 1865, establishes a Waste Lands Board, and makes certain changes in the mode of administering and disposing of portions of the AVastc Lands in the Province of AVellington. No. 73. The Resident Magistrate's Criminal Jurisdiction Extension and Amendment Act, 1865, extends the summary jurisdiction of the Resident Magistrate in certain cases, and limits the powers of Resident Magistrates in whose Courts the clauses extending jurisdiction shall have been brought into force. No. 73. The Comptrollers Act, 1865, contains provisions for establishing an efficient control over the expenditure of the public revenues of the Colony. No. 75. The Appropriation Act, 1865, grants to Her Majesty, out of the ordinary revenue, supplies for the public service of the Colony to the 30th of June, 1866. . Private Acts. 1. The Duck's Nest Dam Act, 1865. 2. The Lincoln. Road Mill Dam Act, 1865, authorize the construction by John Cracroft AVilson, of Mill Dams over the River Heathcote, saving rights of Riparian proprietors, and of Her Majesty and Bodies Politic, &c, and fish ladders if needed. 3. The Picton and Blenheim Railway Act, 1565, authorizes the formation of the Picton and Blenheim Railway, incorporates the undertakers, incorporates the Imperial Act, " The Railways Clauses Consolidation Act, 1845," with certain excepted clauses ; provides for charges and publication, and limits the time for commencing the work to five years from the passing of the Act.

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No. 24. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 9.) Government House, Wellington, Sir,— 12th January, 1866. I have the honor to acknowledge the receipt of your Despatch No. 65, of the 22nd August last, enclosing the copy of a letter from the Senior Commissariat Officer in New Zealand, showing that the liabilities of this Colony to the Imperial Treasury up to the 31st October, 1864, amounted to £641,260 Is. 7d. 2. Upon inquiring into the subject, I cannot but regret that the Senior Commissariat Officer should have transmitted a statement which must have -created erroneous impressions injurious to the Colony. 3. Erom the gross amount of £641,260 Is. 7d. claimed by the Senior Commissariat Officer, has to be deducted, in the first place, the sum of £85,891 10s. 4d., which was admitted at home to be an error of computation. This reduces the sum claimed to £555,368 lis. 3d. 4. Again, the Senior Commissariat Officer in NeAv Zealand, in his communication to the Under Secretary of State for War, has not taken any notice of the counter claims of the Colony on account of the Transport Service on the River Waikato, which rest upon a special agreement made by the Imperial military authorities in the Colony. The accounts on which these claims rest have been for a long time under the examination of a Board, consisting of a Commissariat officer and an accountant unconnected with the Colonial Government. There can be no doubt, lam assured, that at least £80,000 will be found due to the Colony. This reduces the sum claimed to less than £475,368 lis. 3d. 5. But the Senior Commissariat Officer, in the statement he transmitted to the Under Secretary of State for War, also omitted to allude to the instructions from the Treasury, addressed to him on the 13th July, 1862, in which he was instructed that the Home Government would waive for a time the full claim upon the Colony in respect of the military contribution of £5 per man. Erom this cause a further reduction of £69,012 has to be made in the statement furnished by the Senior Commissariat Officer, reducing the claim against the Colony in the whole from £641,260 Is. 7d., to less than £406,356. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

r I 1 V. Scss. Papers, 1865, B. la. page

k, r > » i L I i I i Major-General Chute, Junuarr 1866.

No. 25. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 10.) Government House, Wellington, Sir,— 13th January, 1866. In my Despatch No. 127, of the 14th of October last, I reported the murder on the West Coast of this Island, by the Hau Hau fanatics, of messengers sent to them by Brigadier-General Waddy, C.8., who they decoyed into friendly interviews. 2. The murderers of these messengers being left unpunished, they proceeded to murder other inoffensive people, and unfortunately from the absence of the Wanganui Native Contingent, at Opotiki, «it was impossible at once to collect a Native force that could be relied on to co-operate with the Troops in bringing these murderers to justice. 3. It being however at last found practicable to remove the Wanganui Native Contingent from Opotiki to Wanganui, a Native force was as speedily as possible collected to co-operate with Major-General Chute, and was placed under his command, and you will be glad to learn from the enclosed Despatch which I have just received from the General, that the fanatics and rebel Natives were defeated on the 4th and 7th instant, by Her Majesty's Eorces under MajorGeneral Chute, with but trifling loss on our side, and that from the active measures now taken the whole West Coast of this Island will shortly be placed in a state of entire security. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

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Enclosure in No. 25. Major-General Chute to Governor Sir Geoege Geet, K.C.B. Sih, — Head Quarters, Camp Putahi, Bth January, 1866. I have the honor to report for your Excellency's information that on the 30th ultimo, the date on which the Colonial Troops your Excellency had acquainted me would be placed at my disposal, were ready, I left AVanganui with a small field force, and encamped at Alexander's farm. On the 31st the force marched to AVeraroa, where we were detained for two days waiting for the Native Contingent, who, on the Ist January, were employed in capturing horses the property of rebels, thirty-two of which they secured ; and on the 2nd, in preparing some particular food they declared to be absolutely necessary for the march. On tie 3rd instant, the field force, total strength as per margin,* moved across the AVaitotara. I directed the Native Contingent to cross at Perikama, beneath and on the right flank of the post at AVeraroa, and with the remainder of the force I made a diversion through the AVaitotara Block, crossing by the ford near the mouth of the river. The Contingent having rejoined me on the main inland track, we marched towards Moturou, and encamped about a mile and a half from that village, situated at the edge of a dense forest, within which and about two miles from Moturou was the strongly fortified and formidable position of Okutuku, which I was informed was considered impregnable by the rebels, and there it was stated they had collected in considerable numbers. During the afternoon of the 3rd instant, the Native Contingent, under Major McDonnell, proceeded to reconnoitre this position, and taking the rebels by surprise entered it without opposition : a few shots only were fired at them by the enemy's scouts. Having set fire to the whares outside the pa, the Contingent returned to camp. On tho following morning having reason to believe that the enemy in considerable force had re-occupied the position they had apparently evacuated the evening before, I marched with the forcef to attack the Okotuku Pa. The line of march for the last two miles was through dense forest, and the track itself obstructed throughout by ravines, rocks, and supplejack, rendering the advance most difficult, especially for the skirmishers whom I had thrown out from the Native troops as I entered the forest. At a small clearing overhanging a deep ravine, just before commencing the steepest part of the ascent, the skirmisher.-- were fired upon by the enemy. I pushed on as rapidly as the excessive badness of the ground would admit of, and soon gained the plateau. This is a narrow tongue of land of about twenty acres, the greater part being under cultivation. As the troops crowned it they were exposed to a very heavy fire from the pa, distant about 350 yards. I immediately extended the Forest Rangers on my extreme left, the 2nd Battalion 14th Regiment in the centre. The Native troops were on either flank and in reserve. I directed all to keep as much as possible under cover of the many fallen trees about us. Advancing in this manner for a short distance, the fire became still more severe and two men were wounded. I ordered the party to advance, and endeavour to occupy the pa, when the 2nd Battalion 14th Regiment, led by Captain A Tivian, in the most gallant maimer charged the stockading, succeed in entering the pa and in driving the enemy down the almost sharped sides and rear of this defence, formidable by nature, but rendered doubly so by native skill. I this affair I regret to say that Lieut. Keogh and four men of the 2nd Battalion 14th Regiment were wounded. The bodies of six Natives killed were found ; it is supposed their loss in killed and wounded amounted to twenty, but owing to the density of the bush into which they retreated it was not possible to ascertain their real loss. AVhen the pa was captured a portion of the Native Contingent entered the bush, and endeavoured to pursue the retreating enemy. They succeeded in taking the rebel chief and killing one man. The most formidable part of the defence consisted of a palisade several feet high, and fully three feet thick, made by piling logs of hard wood horizontally between two rows of thick upright stakes, extending a distance of about eighty yards from one sharped gully to another. So precipitous \>ere the sides and rear, and so dense the forest beneath them, that it was impossible to approach them and cut off the retreat of the enemy. The whole clearing, of which this pa formed the stronghold, was surrounded by bush, and is situated on one of the high points of the range of mountains running nearly in a north-westerly direction from AVeraroa. It would be difficult to exaggerate the obstacleopposed to the advance of the troops to such a position, or the spirited manner in which they were overcome by all concerned. The defences of the pa, whares, &c, having been burnt and completely destroyed, the troops returned to camp. I am much hidebted to Major McDonnell and the Native Contingent for their services on tbis occasion. Dr Featherston, Superintendent of this Province, who accompanies the Field Force, was present at the assault on Okotuku, and I have have every reason to be obliged to him for his assistance on all matters e ornected with the Natives. Previous to my departure from AVeraroa, I sent to the Officers commanding at Patea, Manawapov., and AYaingongoro, informing them that it was my intention to proceed northward by the inland track, pointing out the probability of the rebels retreating in that direction, and instructing them to patrol the country in the vicinity of the bush near their posts, with the view of intercepting aud cutting them off. * Royal Artillery—officer, 1; sergeants, 2 ; rank and file, 30. Under command of Lieutenant Carre. 2nd Battalion 14th Regiment—officers, 8; sergeants, 11; drummers, 4; rank and file, 250. Under command of Lieut.-Colonel Trevor. Forest Rangers —officers, 2 ; sergeants, 3 ; rank and file, 41. Uudor command of Major Yon Tempsky. Native Contingent (including Natives) —officers, 12 ; sergeants, 8 ; rank and file, 9G. Kupapas, or Volunteer Natives —rank and file, 150. Under the command of Major McDonnell. Total—officers, 23; sergeants, 24; drummers, 4 ; rank and file, 567. t 2nd Battalion 14th Regiment—officers, 3 ; sergeants, 4 ; drummer, 1; rank and file, 100. Forest Rangers—officers, 2 ; rank and file, 33. Native Contingent—officers, 3 ; rank and file, 200. Total—officers, 8; sergeants, 4; drummer, 1; rank and file, 333.

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Colonel AVarre, C.8., commanding at Taranaki, has also been instructed, if possible, to clear his district of rebels, more particularly in the vicinity of his Southern outposts, and to prevent their retreat by Mataitawa, should they take the road at the back of Mount Egmont. On the sth January, the Native Contingent desiring rest, the troops were occupied in destroying cultivations. On tho 6th January, the force marched to the AVenuakura River, and encamped on some high land to the southward and front of the rebel st ronghold of Putahi. I purposed attacking the pa at once, and had directed two hundred men from the Patea to advance on it at the same time from the side next the river, but the only information I was able to obtain regarding the tracks to it was so meagre that I was obliged to wait until the following day. On the evening of the 6th, while reconnoitering the position, a small party of the Native Contingent were fired upon by the enemy's scouts, resulting in a skirmish in which we had one man wounded. Putahi is situated on a clearing about half a mile in diameter on the top of a hill, rising abruptly on all sides from the river plain to the height of about five hundred feet, and covered to the crest with dense bush. The usual approach is from the side on which we are encamped, and was one the rebels evidently anticipated we should attempt, having, as I was informed, erected stockades and other impediments in the bush to assist them in its defence —information which I found to be perfectly correct. Knowing that by this route the pa could only be taken with a loss of many men, I decided on attacking it in rear, and having succeeded at a late hour on the night of tho 6th in obtaining the services of a guide with a tolerable knowledge of the country, I marched at 3 a.m. on the morning of the 7th, with a force,* crossed a tributary of the AVenuakura by a bridge constructed the evening before, and passing over a plain of about half a mile, ascended a steep spur, which brought us on an isolated plateau, lying to the left front of the pa, about two miles distant from it in a direct line. Descending this, the march may be described as one continued struggle through a dense primeval forest and bush, over ravines and gullies which could in most cases only be ascended and descended by the aid of supplejacks, and then only with great difficulty. The extreme distance to be traversed could not have exceeded four miles, but the obstacles and obstructions opposed to us made it a severe task of four hours. AVhen we arrived at the clearing, the Native Contingent, who had led through the bush, formed to the left and on the edge of it; the Forest Rangers were opened out in skirmishing order, and lying down to cover the formation of the remainder of the force, who, as they emerged one by one from the bush, were extended with supports; the 2nd Battalion 14th Regiment being in the centre ; the 2nd Battalion 18th Regiment on the right, and the 50th on the left; the Native Contingent forming a reserve. The formation occupied more than an hour, under a desultory fire from the pa, from which we were then distant about four hundred yards, and when complete 1 gave the order to advance. The rebels now opened a heavy fire; but the line did not charge until they were within eighty yards, when, with a cheer and a rush, they carried the position, the rebels retreating to the bush beyond, to which I immediately sent the Native Contingent, who followed them for some little distance. The whole of the troops behaved admirably, and, though working through high fern, conducted the attack as steadily as on an ordinary parade. The flagstaff, whares, &c, were all pulled down and burnt. The work of destruction being completed, and the formidable pa of Putahi, hitherto considered impregnable, on account of its inaccessibility, being levelled to the ground, I ordered the troops to be marched to camp. Their loss has probably been very severe, though sixteen bodies only were found in and around the pa. From information I have received, the garrison appears to have consisted of about two hundred rebels of the worst character. I enclose a return of our casualties, by which your Excellency will observe we had one man killed and seven wounded. Amongst the latter, I am sorry to say, is Major McDonnell, who, as usual, was most active and zealous, not only in directing the march through the bush, but in pursuing the rebels in retreat. AVhere all have behaved so gallantly, it is difficult to select any names for favorable mention; but, of the Colonial Forces, I beg especially to bring to your Excellency's notice Major A ron Tempsky, commanding Forest Rangers ; Major McDonnell, commanding Native Contingent; as also Ensign McDonnell of the same force. I had directed Colonel AVarre, C.8., to send one hundred men from the Patea to the right bank of the AVenuakura River, and to the right flank of the pa, in order to intercept rebels retreating by the inland route towards Kakarainea. I beg to forward a copy of this Officer's report of the proceedings on the occasion. I have, Ac, T. Chute, His Excellency Sir G. Grey, X.C.8., &c. Major-General. * Royal Artillery —officer, 1; sergeants, 2 ; rank and file, 28 ; under Lieutenant Carre. 2nd Battalion 14th Regiment —officers, 6; sergeants, 9; drummers, 3; rank and file, 204; under Lieut.-Colonel Trevor. 2nd Battalion 18th Regiment—officers, 5 ; sergeants, 4; drummers, 2 ; rank and file, 89 ; under Major Rocke. 50th Regiment—officers, 4; sergeants, 4 ; drummers, 2 ; rank and file, 90 ; under Captain C Johnson. Forest Hangers—officers, 2 ; sergeants, 2 ; rank and file, 38 ; under Major Yon Tompsky. Native Contingent, &c. —officers (including Natives), 10 ; rank and file, 200 ; under Major McDonnell. Total —officers, 28; sergeants, 21; drummers, 7 ; rank and file, 6-19.

DESPATCHES FROM THE GOVERNOR OF NEW

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No. 26. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 11.) Government House, Wellington, Sir,— 13th January, 1866. I have the honor to acknowledge the receipt of your Despatch No. 66, of the 23rd of August last, in reference to the sum of £500,000 in Government Debentures, which the Crown Agents had been instructed to deliver to the Imperial Government with a view to the adjustment in part of the debt due by the Colony of New Zealand. 2. My Responsible Advisers have requested me to transmit for your information the enclosed replies to the questions raised in your Despatch. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Mr. Stafford,

JanuarvUll, 1866.

Enclosure in No. 26. Memorandum by Mr. Stafford. His Excellency's Ministers have had under their consideration Mr. Cardwell's Despatch No. 66, of the 23rd August, 1865, on the subject of the New Zealand Government Debentures, for five hundred thousand pounds, which the Crown Agents were instructed to deliver to the Imperial Government, with a view to the adjustment of the debt claimed by the Imperial Government from the Colony. Ministers propose to take an early opportunity of submitting their views on the whole question of the claims preferred against the Colony by the Imperial Government. On the present occasion they would, with reference to the final appropriation of the Debentures in question, beg to call the attention of the Secretary of State for the Colonies to the course suggested by the Crown Agents in their letter to Mr. .1. F. Elliott, of the 21st June last, in which it was urged that if the Imperial Government accepted these Debentures, as offered by the New Zealand Government, and covered them with an Imperial Guarantee, a profit of some twenty thousand pounds (£20,000) would probably be realized from them. Ministers concur with the Crown Agents in believing that this would be by far the wisest course for the Imperial Government to adopt. It would, therefore, naturally devolve on the Imperial authorities to instruct that the bonds should be prepared in such amounts and for such periods as they might prefer. In so far as the Colonial Government is concerned it is willing to leave the amounts and periods to the discretion of the Crown Agents. AVellington, 11th January, 186(5. E. AY. Stafford.

No. 27. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 13.) Government House, "Wellington, Sir, — 13th January, 1866. In your Despatch No. 86, of the 26th of October last, you instruct me as follows: — "Her Majesty's Government require you therefore immediately upon the "receipt of this Despatch to place at once at the disposal of the Officer " commanding Her Majesty's Eorces in the Colony, with a view to their early " removal from New Zealand, all the Troops for whom no such appropriation " shall have been made by the Assembly of New Zealand, as was contemplated in " the correspondence between this Department and the late Colonial Treasurer, " laid before Parliament in June, 1864. In order however that full opportunity " may be afforded to your Ministers to take such steps as in their opinion may be " required by the state of the Colony, and that the due responsibility may rest " upon them, I add the following qualification, viz. : —That if when you receive " this instruction no such appropriation shall have been made, and you or your " Ministers consider that the Troops, or any portion of them, cannot safely be sent " away, and are desirous forthwith to convene the Assembly and to obtain the " appropriation, you are at liberty to allow sufficient time for this purpose, and " no more." 2. In reply, I have the honor to state that my Responsible Advisers are of opinion that in the present financial state of New Zealand, it would be impossible for the Colony to pay the contribution of £40 per man for the Troops, and that

A.—No. 1.

therefore it would be useless to convene the General Assembly of New Zealand with a view to obtaining the appropriation asked for. 3. Under these circumstances, as no discretion is left me by your Despatch, nothing remains for me but to place at the disposal of Major-General Chute, Her Majesty's Eorces in New Zealand, with a view to their early removal from this Colony, which I shall do ; but with a view to prevent any serious difficulties from arising here which I know it would be your earnest wish to avoid, I shall advise Major-General Chute only to allow Her Majesty's Eorces to leave the Colony at the rate of one Regiment every two months, which is the period of time the military authorities have reported they require for the convenient embarkation of each regiment. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

No. 28. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 14.) Government House, Wellington, Sir,— 13th January, 1866. I have the honor to enclose for your information the copy of a Despatch from Major Eraser, containing the details of an action between Her Majesty's Colonial Forces under his command, and the Hau Haus fanatics on the Wairoa River, near Napier, on the 25th ultimo, in which Her Majesty's Colonial Eorces, European and Native, behaved with great gallantry, defeating the enemy with considerable loss on their side, but I regret to say with the loss of a very valuable and gallant officer, Captain Hussey, and of one Native upon our side. I have, &c., G. GREY. The Right Hon. Edward Cardwell, M.P.

Major Fraser, December 27, 1865.

Enclosure in No. 28. Major Fraser to the Under Secretary for Colonial Defence. Sir, — Maru-Maru, Te AVairoa, 27th December, 1865. I have the honor to report for the information of the Minister for Colonial Defence, that, in accordance with instructions received from His Honor Mr. McLean, I commenced active operations at the Wairoa as soon as possible after my return thither from Napier. Having organized an expedition, consisting of Captain Hussey's Company and part of my own, and part of the Chiefs Kopu, Ihaka, AVhaanga, and Karauria's tribes, I started from Te Wairoa on Saturday, the 23rd instant, and marched about nine miles, camping for that night about two miles above the junction of the Wairoa and Waiau Rivers, and about four miles from the enemy's first position. I remained at this place until Monday morning, when, after divine service, we made an early start and proceeded toward the enemy's pa, which on arriving at we found deserted. This pa had evidently been originally an old fighting pa, and the Hau Hau had intended making it a strong position, as they had palisades ready for the purpose of strengthening it. Nothing but our quick advance saved our having some trouble both there and along our whole line of march, there being many places suitable for ambushes, and the ground being such that every step might have been contested. I will now explain the different positions of the enemy, so that the Government may thoroughly understand what lam about to relate. This pa that I have mentioned was on the right bank of the AVairoa, on the left bank of which, directly opposite, was a kainga, in which were several whares, a flagstaff, <fee.; near it were large cultivations. The enemy had deserted this kainga, and had separated in two different directions ; some had gone to another kainga, about a mile and a half off, situated on a creek which runs into the Wairoa, and called " Maruhakeke" ; the remainder had taken to the hills, where subsequently we discovered that they had a large unfinished pa. The Chiefs and I held a consultation on our arrival as to what was best to be done. We could see the Hau Hau flag flying in the pa on the creek, and we determined to send a flag of truce to them in order to give them an opportunity of surrendering unconditionally before blood was shed. They treated our message with contempt, and I accordingly hoisted the Uniou Jack, opened fire, and marched in the direction of the kianga Maruhakeke, with all the Europeans and about 150 Natives. Captain Hussey was in command of the advanced guard ; he pushed on with a few men too hurriedly—the main body could not keep up with him; the consequence was that the approach to the kainga being very sudden, and it being occupied by a large number of rebels, this gallant officer was shot, and died in a few moments while bravely leading the few men with him up to the position. About three minutes afterwards the majority of the men had got to the ground. I had been on the spot myself before Captain Hussey was killed,

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and was then engaged in rallying those who had been with him. As soon as I saw enough men available, I ordered Captain Biggs and Lieutenant Bear to take possession of a small garden in rear of the kainga, and out-flank the enemy. This was done most effectually. The men charged the kainga, led on my side by Lieutenant St. George, who was first in the kainga, and drove the enemy pell mell before them. Captain Biggs, with his usual skill, saw that they could be followed up from where he was stationed, and did so with some Europeans and some Natives. The enemy fled in all directions, were followed for a mile and a half up the creek, and across into the bush and scrub, losing altogether in the attack on the kainga and in the pursuit about ten of their number, nine of whom have been buried by the friendly Natives, and I have no doubt that I am considerably underrating their loss. The casualties on our side were as follows :— Europeans. Captain Hussey—Gunshot wound through spine, entering right side. (Killed.) No. 195, Corporal Hawes, T.M.S. —Gunshot wound in left arm. (Serious ; doing well.) No. 639, Private Hollingsworth, T.M.S.—Gunshot wound in left arm and back. (Serious ; doing well.) Natives. Tipene, of Kopu's party —Gunshot wound through head. (Killed.) AYhile we were engaged as described above, the Chief Kopu and the greater part of his men were watching the enemy's other position, in order that we should not be cut off. As soon as this Chief saw the enemy driven out of their kainga, his men being fresher than ours, he determined to chase them as far as he could. He did so in the most able manner, driving them before him into the hills, and returned at nightfall, having killed three of their number, in addition to those enumerated before, and having only one man slightly wounded. The next day, at two o'clock in the morning, Captain Biggs, Cornet Pearce, and Ensign Richardson, with fifty men, composed nearly all of my own Company, who volunteered for the service, started with Kopu and Ihaka Whaanga's people, to surprise the enemy if possible, and drive them out of any position they might have taken up. Captain Biggs returned to camp about nine a.m., and reported his having discovered a large unfinished pa, from which the enemy had fled. He had not therefore seen anything of the enemy, but was able to give me information of the direction they had taken. Kopu remained with his men in order to scout. Kopu returned in the evening, having found and been engaged with the enemy a great part of the day, in what may be described as a bush fight. Two of his men were wounded ; one, I fear, by name Rana, will not live. Kopu reports the enemy to be now occupying a strong position on a spur among the^flls. They have sent their women and children to AVaikaremoana, which is about three days journey from where I now am. The fugitives from Turanga under Anaru Matete, have taken refuge with the enemy here. I estimate the number of the enemy at about 400, and considering the small force at my disposal, having only 100 available Europeans for the field, together with about 150 trustworthy Natives, I am now sending Captain Biggs overland to Napier, to obtain his Honor Mr. McLean's consent for him to proceed at once to Tuparoa, in order to obtain the services—-which I know will be gladly given—of those brave Chiefs Te Hotine and Bopatu, with their men. I also purpose removing by the same opportunity from Turanga-Nui twenty more men from my own Company and the Hawke's Bay Volunteers. This will be an addition to the force here of about 200 Natives, who have fought with me before, and whom I know and can trust thoroughly, and of 50 Europeans. In concluding this Despatch, I beg to bring under the notice of the Government the general gallantry displayed by both officers and men in their pursuit of the enemy over a strange country, one which even the friendly Natives know nothing about. I must particularize the names of Captain Biggs, Lieutenant St. George, and a gentleman volunteer who has accompanied the expedition with Ihaka AVaanga's Natives, (a Mr. Towgood, of Hawke's Bay,) as having been by their skill and courage of the greatest possible assistance to me, and I trust the Government will remember their services. I have, &c., , James Eraser, Brevet-Major, commanding Local Forces, The Under Secretary for Colonial Defence, Turanga-Nui and Te AVairoa, AVellington. Province of Auckland.

No. 29. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 15.) Government House, Wellington, Sir,— 13th January, 1866. I omitted to send for your information the enclosed copy of a memorandum from my late Responsible Advisers in reference to the Waitotara Block of land, but from the statements made by General Cameron regarding that block of land, I think it due to my late Responsible Advisers to forward it to you, that you may see that no consideration regarding the Waitotara Block influenced the policy of the Colonial Ministers, and that they have in no case advised an appeal to force upon any question of disputed title, their policy

Sess. Papers, 1856 A. No. 1, page 16

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having always been diametrically opposed to any such proceeding,—believing as they did that such questions should be decided by judicial action. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

No. 30. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 19.) Government House, Wellington, Sir,— 20th January, 1866. I have the honor to transmit for your information copies of two very interesting letters from Mr. Booth, the Resident Magistrate in the Upper Wanganui District, from which you will be glad to learn that almost the entire population of the Lake Taupo District, the great central division of this Island, have abandoned all intention of any further prosecution of war or disturbance, and that a large section of them are quite prepared to co-operate with the Europeans in punishing any tribes who may still attempt to carry on the war. The events detailed in Mr. Booth's letter of the 13th instant are in every respect most important and satisfactory. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY. Enclosure 1 in No. 30. Mr. Booth, R.M., to the Hon. the Native Minister. Sir, — Eesident Magistrate's Office, Pipiriki, 11th January, 1866. I have the honor to report that during the last week two expeditions have been made in this neighbourhood by men of the 57th Regiment, accompanied by myself and five Native guides. The first expedition was made on Saturday last at my request, as I had reason to believe Natives had been about the place. AYe went first to Mr. R. Booth's place, Kapuka, on tho left bank of the river, half a mile distant from this place. There we found a basket of seed potatoes, which had been left very recently. AYe followed on a Native track for about two miles to Te Autumutu, but saw no sign of Natives having been there lately. AYe then destroyed a few whares, and returned home through the broken scrub by the river side. It was quite evident on our return from the expedition, that the British soldier has not the slightest chance in this broken country against the Native. In places where the men had to make the most violent exertions to get on at all, even though for a time relieved of their rifles, and where they were pulled up every few minutes by obstacles in the bush, the Natives, on the other hand, moved along barefooted through the bush without any apparent exertion whatever. On Tuesday last (9th), Lieut.-Colonel Logan, at my request, sent out a party of 3 officers and 40 men, together with four Native guides, to explore the track towards Waitotara. We slept on Tuesday night on the top of Karewarewa, a mountain range westward of Pipiriki. On Wednesday, 4 a.m., we pushed on with half our force, leaving the remainder, with one Native, as a reserve. We marched about five miles from Karewarewa, on a very fair Maori track, the greater part of which followed the ridge of a mountain range trending away westward. After a very tiring march we halted at 9 a.m., about half a mile from a mountain stream called Te Huri. Two Natives, two soldiers, and myself went down to the stream. After descending the hill for about 500 or 600 yards, we came to the bank of the stream, which is a precipitous cliff 40 feet high, down which we went by means of a rope ladder. As we had seen no sign of Natives having been on the road for some time, it was thought as well that we should return. Before leaving the stream, the Natives tied up, in a conspicuous place, an empty soda water bottle, a piece of biscuit, and a match, so that, as they said, if tho Hau Haus come this way, they will see that the Queen's soldiers have been here. The AVaitotara River is an easy day's journey from the river at which we halted. On our return to the camp of the night before, fires were lit, which were answered at once by a fire from an earthwork at some distance ; the Natives made out the place to be directly above Mangaio. The roads by which we marched on Tuesday and Wednesday is the only one by which, as far as is at present known, the Natives can travel between AVaitotara and Pipiriki or the neighbourhood. I have, &c, The Hon. the Native Minister, AVellington. James Booth, R.M. Enclosure 2 in No. 30. Mr. Booth, R.M., to the Hon. the Native Minister. Sir, — Resident Magistrate's Office, Pipiriki, 13th January, 1866. I have the honor to report that last evening (12th) a party of Natives from Taupo, consisting of 30 men, and 10 or 12 women, arrived at Ranana. 16

Mr. Booth, Jau, 11, 1866.

Mr. Booth, Jan. 13, 1866.

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They state that about 70 of their tribe have gone to Napier, to give in their allegiance at that place. The people who have come here belong to the Ngatipehi tribe ; the family names or hapus, are the Ngatikurania and the Ngatipou. The head Chief of this tribe who has come with his people, is Hare Tauteka; the other Chiefs are Takuira, Herekieku, Hetaraka, and Himona. Takuira reports that when he arrived in Taupo, a short time ago, where he went for the purpose of bringing in his tribe, he found that Topia (Pehi's son), who had learnt from Toma that the Taupos intended shortly to come in, had gone to Taupo to try and dissuade the Ngatipehi, of which tribe he is a Chief, from coming in, but rather that they should come to assist the AVanganui and Coast tribes to strike a final blow at the Pakeha. He told them that the Pakeha was exterminated from the AVest Coast, that there was now no European south of Tataraimaka, or north of Kai Iwi; that they intend to try once more what they can do on the Wanganui, and that for this purpose they have built a strong pa at Mangaio, and intend on his (Topia's) return, to build another at Pa Poaka, four miles from Pipiriki. Whilst Topia told this to a large concourse of Natives who had met together at a place called Poutei, to decide as to what course they should now adopt with regard to the war, in the meantime Takuira had arrived at Poutu. When Topia had finished, he said: " I have just arrived from Wanganui, and lamin a position to deny everything that Topia has held forth to you, as inducements to you to join him in this work of fighting ; the Pakehas have not been exterminated, nor are they likely to be ; but this has been done, several unarmed men have been foully murdered by the tribes on the West Coast. These murders Topia and his friends aro feign to magnify into victories. " My friends, do not listen to his advice, but make good your word which I have taken to the Governor and to Hori Kingi. If you listen to Topia, and still persist in fighting, I tell you that you will see the men in boots marching round this lake in less than a month." Three stakes were then driven into the ground. One to represent the men who are determined to carry on the war to the death. 2. The second to represent the men who will not give up the Hau Hau religion, but pledge themselves to live peaceably, to entertain strangers, European or Maori, to give up all murderers, and not to take up arms again unless their country is invaded. 3. The third to represent the people who intend to give in their unreserved allegiance at once, and to join the Pakeha in assisting to capture the murderers, if called upon to do so. * The Chief Hare Tauteka, with a large portion of his tribe, went and took up their stand by stake No. 3. The rest of the Taupos within a large tract of country, including almost the whole of the Taupo District, took their place by stake No. 2. Whilst Topia, with only eight others, one of whom is the Chic!' Te Heuheu, took their place by No. 1. Hare then said to Topia, " Now I have declared on whose side I am. I intend, to-morrow, to start for AVanganui. If you make another attack on Pipiriki, I shall return home with the Pakehas, through Pipiriki and the Upper Wanganui, and so on home." Topia said, " I and my people will never submit to the Pakeha ;we will never make peace with the Governor. No ; never ! never ! ! Takuira says that his wife and Topia, who are brother and sister, or cousins, cried over each other, rubbed noses, and then separated, each going the way they have chosen. About 2 p.m. to day, I asked the visitors to meet me in the runanga house at Ranana. After saluting them collectively, and the Chiefs by name, I addressed my remarks to Hare, telling him that the trouble and confusion which had taken place in New Zealand has been caused, not by the Government, but by themselves. I said I will take Wanganui alone as an example of what I mean : Murder alone has been the cause of the evil that has arisen. Matene came from Taranaki with his evil work, and brought to Pipiriki the head of a Pakeha, he planted the seed there, and three days afterwards I and my family were robbed of everything we had in the world, and had the greatest difficulty to make our escape with our lives. One week after he had sown the seed in Pipiriki, the tree bore its bitter fruit in the battle at Moutoa. After that you, Hare, with your people, joined Pehi and Tahana, at Ohoutahi, in again disturbing the peace of the river. In the meantime that wicked murderer, Kereopa, passed through Pipiriki, with the head of another European, on his way to plant the seed of murder and treachery on the East Coast. The fruit of that tree, as we all know, was the murder of the Rev. Mr. Volkner, and all the other evils which have since arisen at that place. The Governor's militiamen, European and Maori, then took Pipiriki, not with the idea of confiscating the land, but to protect the friendly Natives and Europeans, and to keep the peace on the AVauganui River. Then you, Hare, with your people, again came and joined the traitor Pehi, and tried to drive the Pakeha from Pipiriki, but you could not do it. I hear that your people have since been to Opotiki, but now that you come in I can say, in the name of the Government, —" Come, and unless your tribe is implicated in murder, all that is past will be forgotten." Hare then replied. He said, "If you had listened to my letter, which I, Tahana and others had sent, we should not have made the attack on Pipiriki. AYe waited for some days; you did not answer our letter, so we attacked the post." I said, " I remember the letter from Tahana (date 12th July, 1865, translation forwarded to the Native Office at the time). Tahana therein, addressing myself, Major Nixon, and Pehi, told us to remove the Europeans from Pipiriki, ' because the place had not been taken in fighting ;' but, in the first place, I happened to be in town when the letter was sent, and the attack was made the clay after I saw the letter. If I had been there, I should have answered you in the words I have already' used, that the Government intend to hold Pipiriki for the peace and safety of the rest of the river." After this, I asked each man separately, if he would solemnly declare that he would henceforth be a true and faithful subject of Her Majesty Queen Victoria, which promise they severally made. I did not administer the oath, as I think a man without any religion would not feel himself any more bound by an oath than he would by a simple promise. The Taupos intend to visit the Town of AVanganui, and Hori Kingi's place at Putiki, and declare

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themselves ready, if their services are required, to volunteer for active service at Patea. Subjoined is a list of names of men who have this day made their declaration of loyalty to the Queen. I have, &c, The Hon. the Native Minister. Jailes Booth, R.M. List of Names of Men who, on this day, 13th January, 1566, declared their allegiance to the Queen : •1. Hare Tauteka, *11. Hataraka, 21. AVereta, *2. Takuira Henkiekie, *12. Himona, 22. Hepi, 3. Wiremu Keke, 13. AVherahiko, 23. Mokokore, 4. Te Rangi, 14. Te Kepa, 24. Hiri, 5. Waretini, 15. Koeru, 25. Anieta, 6. Wi Tauranga, 16. Te Riu, 26. Petera, 7. Matene, 17. Tumuera, 27. Eru, 8. Rota, 18. Te AVhakakai, 28. Hone, 9. Rawiri, 19. Heremia, 29. Pine, 10. Heperi, 20. Hoaui, 30. Heta, * Chiefs. , J. Booth, R.M.

No. 31. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardavell, M.P. (No. 20.) Government House, Wellington. Sir,— 2nd Eebruary, 1866. I have been requested by my Responsible Advisers to transmit for your information the copy of a letter addressed by Sir Wm. Martin to the Colonial Minister for Native Affairs. 2. My Responsible Advisers inform me that it is with regret they find their views opposed to some of those of so good and able a man as Sir Wm. Martin is. 3. In order that full information may be afforded to you upon, perhaps, the most important point raised in Sir W. Martin's letter, I beg to offer the following remarks: — 4. Sir Wm. Martin states: " The object of the war in this country was to " repress and terminate the efforts which the Natives were making to set up a " separate nationality —an effort dangerous to both races ; but though that effort " was a great folly, it Avas not a great crime." 5. This view of the case appears to me only to embrace part of the problem which should be presented for consideration, in order to render it possible to form a correct and safe conclusion upon a subject which is of a very difficult and complex nature. 6. In this Island two races are living together —a barbarous and a civilized race. The barbarous race is now in the minority, and each year this minority will be more apparent. But it occupies the central strongholds of the country. The people belonging to it do not live generally as a scattered population, but as communities under Chiefs. They have been allowed to arm themselves well, are practised in the use of arms, and are naturally warlike. Wherever Natives are, there is a body of armed and organized warriors, ready for instant action. 7. Besides occupying the central strongholds of the country, the people of this race occupy many places between European settlements, in the vicinity of and even in the midst of those settlements. 8. The European race live scattered through the country, and in settlements dispersed at various points along the coast line of the Island. Many of them were born in the country, have attained to middle age, and their children are in their turn growing up here. They have thus no sense of want of right to be here, or of being an intruding population. Between themselves and many of the Natives strong and long enduring bonds of amity have existed, and still exist. 9. Until recently these Europeans have neither been armed or trained to the use of arms, or placed under or habituated to act under leaders. Eor purposes of outrage or violence the barbarous population had therefore many advantages upon their side. 10. An armed attempt to set up a separate nationality and Native King by a barbarous population, so circumstanced in reference to a civilized population such as I have described, becomes a very serious matter.

Sir W. Martin, February 8, 18(10.

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11. In such an attempt the civilized population who have no interest but self-preservation must necessarily suffer the most. Those of the barbarous who engage in such an attempt may be clever, and themselves much advanced in civilisation, but the worst and most violent of their countrymen are almost certain to join them, and to break lose from all control. They have little to lose, and in a few hours can destroy property which the European population has been years in painfully and patiently accumulating. The national Government attempted to be set up under such circumstances can necessarily have no power to repress violence, or to punish evil-doers amongst those who claim to be its subjects. Such men, even when mixed up with the European settlements, are certain, after committing crimes, to claim their nationality, as an excuse for not acknowledging European tribunals which would punish them for their offences; and this claim on their part will be supported by all their countrymen who desire disturbances, or may hope to gain anything by them. At the hands of such men both the wellconducted of their countrymen and the European population must suffer great wrongs. It might be said that to proclaim that a barbarous nationality has been set up in a country circumstanced as this is, is to proclaim that every man who pleases to acknowledge that nationality, may do as he likes, and that all law is abolished. Such was, in fact, in many instances the result, even within the limits of the European settlements, of the attempt to set up a separate nationality in New Zealand. 12. In forming a judgment on the nature and circumstances of such an attempt all this must be borne in mind. 13. When once the serious and terrible evils which spring from such an attempt are made manifest, I think it becomes the duty of the European population, and of the well-disposed amongst the Native population, to take every precaution within their power which they can take 'without acting unjustly or unmercifully, not only to repress and terminate such an attempt, but to prevent such an attempt from being ever again made. 11. This is no less necessary for the protection of the Natives than of the Europeans ; not to do it would be to ensure the ultimate destruction of the Native race. To this end my aims have been mainly directed. The thought of punishing those who have been engaged in the attempt to set up a separate nationality, and who have entailed so large a loss of life and property, and such a vast expenditure on the country, has been entire! v subordinated to the idea of doin_r that which might prevent such evils from falling on the two races for the future, and in these views I have been thoroughly supported by the General Assembly, and the whole talent and influence of the country. In fact, my views were their views; there has been no essential difference of opinion between us. 15. I do not mean to say that there are not violent men in New Zealand ; but even in the midst of the worst outrages, and during times of the greatest excitement, the General Assembly has shown a scrupulous care for the rights, both present and prospective, of the Native race; instead of waiting for the termination of hostilities to make provision for the future of that race, they have even, in the midst of wars and outrages, carefully devoted themselves to enacting laws for the security of the future welfare of the Native people. I feel sure that upon the whole the debates, the legislation, and the acts of the General Assembly will hereafter be admitted to be creditable to their humanity, and to the nation to which they belong ; and I have no reason to think that Sir Wm. Martin would not agree with me in the opinions which I have thus expressed. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

Enclosure 1 to No. 31. Memorandum by Colonel Russell. I have not had time to read this paper with the attention it deserves before leaving to-day for Hawke"s Bay, but from the hasty perusal which I have been able to give it, I regret very much to find my views opposed to some of those expressed by so good and able a man as Sir W. Martin. 21th January, 1566. A. H. Russell.

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Enclosure 2 to No. 81. Sir W. Martin to the Hon. the Native Minister. Sir,— Auckland, 23rd December, 1865. I have the honor to address you in reference to the important subject upon which I entered in the Notes on the best mode of working " The Lands Act," and in the letter, dated 18th July last, accompanying those Notes. Further, consideration has confirmed my conviction that there yet remains open to us a course of action whereby wo may escape from our present difficulties in Native matters, and may attain the objects we desire, and that by a process neither costly nor difficult. I desire, therefore, now to complete the review of the subject which I then commenced. I feel assured that you, Sir, considering the importance of the matter, will give a patient hearing even to a statement which, from the nature of the case, cannot be very brief. Before proceeding to define the course of action which I desire to commend to the consideration of the Government, it will be necessary to notice our present relations to the Native population of this Island. The whole Native population may be divided into two sections: 1. The first section comprises the population in the North, in the Gulf of Hauraki, and in the lower part of the AVaikato; and again in the greater part of the Provinces of AVellington and Hawke's Bay; and again in various districts about the East Cape, and to the southward of that Cape. These people are, as a whole, desirous of living at peace with us, and the more intelligent of them are convinced that a real union with us is the only means of securing to themselves peace and prosperity. Amongst them many have shown themselves willing to support our cause, even to the death. Yet it is not to be supposed that there exists in these districts universal or complete confidence in the Pakeha. On the contrary, distrust and suspicion exists even in the most friendly districts. Men actually engaged in fighting on our side have avowed that they could not feel assured that even their sacrifices on our behalf would in the end secure them just and considerate treatment, and have calmly and reasonably stated the grounds on which it appeared to them impossible to repose entire confidence in us. 2. The second section includes the greater part of the former occupants of the lands comprise i within the blocks marked out by various recent Proclamations issued under the New Zea Settlements Act, in the district of Waikato, and of the South-western tribes from Taranaki I i Wanganui, together with all such portions of the Native population elsewhere as have espoused their quarrel. The new Hau Hau worship appears to have become, for the present, the recognized bond of union of all these. Let us now consider the elements of which this latter group is comprised. Waikato. 3. In AVaikato, a large portion of the Native owners hold their position outside the boundary line traced by the Proclamation, kept from their old possessions by the presence of a large force, suffering privations, exasperated but not subdued. If we desire to comprehend rightly the state of mind of these people, we must put ourselves in their place. We must also remember how widely the estimate formed by the Natives of our dealings with them differs from that which is current among ourselves. To them all the doings of the Pakeha present themselves as one great whole. Englishmen are apt to accept various solutions of the public questions which cannot be accepted by them. If the justness or fitness of a public measure be canvassed, we often hear it said that such a measure was adopted or acquiesced in for such and such reasons ; the reason being oftentimes connected, not with the intrinsic merits of the measure in question, but only with the internal working of our complicated system of Government. The Natives, knowing little of our internal politics, look only at the general result. There is reason to believe that the view commonly taken by the people of the Waikato and Waipa Rivers is the following: They had combined in an attempt to form an independent Government, a movement which they had come to believe right and even necessary. They were told that the name of King would not in itself be deemed a cause of war, and the more moderate party were careful not to give their stronger neighbour any other cause for entering their borders. For a long time they succeeded in restraining their turbulent brethren, even in the face of preparations for war visibly and steadily advancing on our part. Then came the re-occupation of the Tataraimaka, and the resumption of hostilities by Rewi, and soon after the entrance of our troops into Waikato. Two vain attempts were made to withstand our advance by fair fighting. Shortly after, on the 6th December, a letter was written in the Governor's name, to all the Chiefs of AVaikato. " Your letter of the 2nd December has reached me. Sons, my words to you are these, —The General must go uninterrupted to Ngaruawahia (the King's village). The flag of the Queen must be hoisted there. Then I will talk to you." The promised conference did not take place. The troops went forward, not indeed to follow Rewi into his territory, but to take possession of the lands of the nearer tribes. Can we be surprised at this course appearing to them severe and unjust, when they saw no distinction made between the two sections into which the population of Waikato had been divided through the whole period of these troubles ; between those who had been driven to take up arms by the Natives, which they could not honorably disregard, and those whose wilfulness had renewed the war ; or rather, when they saw the less offending heavily punished, and the more offending visited with a comparatively slight punishment ? 4. Our adversaries in Waikato believe themselves guilty of no wrong in contending for their nationality. It has not been usual for Maori tribes to yield up their lands to an invader without repeated efforts to recover them. Some may be disposed to submit, but this cannot bind or control their brethren. It may bo expected that the majority may have much the same feeling as the majority of our own people would have if they could be placed in like circumstances. There appears to be ground for the apprehension which has been expressed that in case of tho dispossessed Maoris actually making an effort to re-possess their lands, they may find allies on the Northern side of Auckland. Persons who have had good opportunities for observing, report that the presence of the prisoners in that part, after their escape from the Kawau, has generated in some portions of the population a strong sympathy with their cause. 17

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At present there is in the way of any such attempt the obstacle presented by the English regiments, which, in conjunction with the Colonial Force, occupy Waikato and Tauranga. Whilst this advantage still remains to us, every possible security should be provided against the breaking out of fresh troubles whenever those regiments shall be withdrawn. The South-western Tribes. 5. From the beginning our relations with the Ruanuis have been unfortunate. The visit of tho "Alligator" in 1834 could not leave on their minds any favorable impression. Since we have entered the land fewer reclaiming influences have been brought to bear upon them than on most of the other tribes. In Governor Browne's Memorandum on Native affairs, dated 25th May, 1861, it is stated that " even up to that time many districts, such as Taupo, Ngatiruanui, Taranaki, and the country about the East Cape, have never been visited by an officer of the Government. The residents in theso districts have never felt that they are the subjects of the Queen of England, and have little reason to think that the Government of the Colony cares at all about their welfare." Tho Ruanuis, like the other Maoris, had seen their own need of being aided and raised. In 1853, they were urgent for a missionary, but none could be found. At this very time the Bishop of Wellington is building his Cathedral Church on a site which was given for the purpose by Governor Grey in that year as a memorial of the earnest desire of these very Ruanuis for Christian instruction, and of their readiness to give annually a tenth part of their produce for the support of ministers of religion. 6. A. strong feeling is commonly entertained against tho Taranakis as having rushed into the AVaitara quarrel without any immediate provocation. In fairness it ought to be remembered that circumstances, to them very alarming and irritating, had occurred at Now Plymouth a very few years before (in 1855), and had wrought strongly on their minds, and that they then openly declared their apprehension of an attempt by the Pakeha to dispossess the Maoris of their land, and their fixed determination to resist any such attempt. Ido not seek to extenuate their misdeeds. I only say that there had been no concealment of their determination, and that there was every reason to expect them to act upon it. (Pari. Pap., July, 1860, p. 170, and March, 1861.) Warea, the chief settlement of that tribe, is the place where we now meet the most determined and Unceasing resistance. May it not be that in our recent measures they believe they see the verification of the suspicions they expressed in 1855. I do not say that when these small nations voluntarily come into collision with a great nation they ought not to suffer for their temerity. I only point out facts which cannot properly bo overlooked in estimating the amount of punishment to be inflicted. The Hau Hau Superstition. 7. Amongst these Southern tribes the now superstition had its birth, at a time when the relations between the Pakeha and the Maori were such as greatly to favor its growth. For at that time the susjiicions which had from the beginning existed as to the intentions of the Government appeared to many of the Natives to be clearly justified. Erom the very beginning it had been apprehended by some that the English Government would, when strong enough, seize the Natives' lands. This suspicion was suggested to a number of Chiefs by an English subject in the year 1814 at Sydney, just when Mr. Marsden was on the point of sailing for tiiis country ("Nicholas' A royage to New Zealand," 1. 41.) Once kindled it never died out. From time to time it has blazed forth as it AVaitangi and on other occasions. It was apprehended that the ministers of religion, whether knowingly or not, wore employed or encouraged by the Government for the purpose of gradually weakening the power of resistance on the part of the Natives, a view which was favored by the diplomatic habits of the Native tribes accustomed to seek by craft ends which could not be attained by force. It was seen that an active part was taken by the missionaries in introducing into the country first a Resident, and afterwards a Governor, the responsibility which the missionaries in so doing took upon themselves was rightly estimated at the time by Dr. Maunsell, of Waikato (Pari. Pap., 1841, p. 99.) In 1843 I heard these notions broadly avowed on the shores of Taupo Lake by one of the leading Chiefs of that district. They gained great strength from the events of IS6O. When the Southern tribes set up their toll-gate on the coast road, the highest tolls demanded were for ministers of religion —English or Maori. In AVaikato children were withdrawn by the parents from the missionary schools which were known to be aided by grants of Government money. Mr. Gorst, with all his qualifications and resources, could draw into his institution scarcely any purely Native pupils. Many public discussions look place at Tauranga and other places on the East Coast upon the conduct of tho missionaries, and their relations to the Government. 8. AVhcn the result of the hostilities in AVaikato were seen, and the soldiers had taken possession of all the lands of the tribes on the AVaikato and AVaipu, it appeared now clear to many that the old apprehensions had been too well grounded, and that they had, in fact, been the victims of a plot in which the ministers of religion had been the agent sof the Government. Along with the first bitterness of their exasperation there broke out a hope that in their extremity supernatural aid was at hand. That aid appeared to be supplied by the new revelation to the Prophet Horopapera Te Ua. A sort of preparation for the new superstition had been noticed by an intelligent traveller who passed fhrough the territory of the Southern tribes in 1861. After the cessation of active hostilities at Taranaki there was a widely-spread notion that supernatural help had been already vouchsafed. The vaunted energies of the Pakeha had really inflicted little damage. The people stated that by our Armstrong guns only three persons had been killed. In this they saw a proof that the hand of God had been over them. The new superstition having gained strength in the south-west began to spread northward and eastward. Everywhere very many were predisposed to welcome it. Some accepted it in faith, many in wilfulness and bitterness. Some thought it true, others thought that it might be useful. Some men severed themselves from their missionaries in perfect calmness and quietness. One of the Chiefs of Opotiki informed Bishop Williams of his conversion to the new creed in these words : " Bishop, many years ago we received the faith from you ; now we return it to you, for there has been found a new and precious thing by which we shall keep our land." (Kua kitea tetahi taonga hou a mau ai to matou

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whenua.) A common feeling united fanatical believers with cool politicians who believed nothing, but who kept up the fervor of their brethren by false reports of miracles wrought at Taranaki, and of great loss sustained by our troops. The new religion combined men of every sort, from the ferocity of Kereopa to perfect inoffensivcness —some of the best, as well as some of the worst, of the race. It was •accepted as the religion of all who were no longer willing to accept religion at tho hands of the Pakeha. As in all times of national ferment the fiercer and more determined natures got the load. In the beginning of the war the Kingites had prayed for their King after the form in our prayer book, and that sometimes with fasting and great earnestness. Now a new form of prayer was put together, and the new worship was accepted as the bond of union amongst all who still adhered to the cause of the Maori King. 9. No spot in tho Island was better prepared to receive this fanaticism than Opotiki, in the Bay of Plenty. The people of that place had sympathized in the AVaikato, and some of them had taken part in the war. A^arious circumstances had caused their minister (Mr. A Tolkner) to be suspected of being in secret correspondence with the Government on the subject of their disaffection. The feeling of the people became more bitter when their leading Chief Aperotanga, who had been wounded and taken prisoner by our allies, was murdered by a woman of that tribe (the widow of Pekania Tohi), in revenge for the death of her husband who had fallen in the war. Yet this provocation did not at once lead them to retaliate, on Mr. A rolkner. Even two men of the offending tribe who had come into the district ■of Opotiki from the eastward in ignorance of all that had passed were spared. The cry for blood which arose from the widows was rebuked by a woman, and the men were fed, conducted to the western boundary of the district, and sent on their way. Mr. Volkner, having again visited Auckland, was continually troubled by the thought of the miserable condition of his people. Their cultivations had been neglected, and a low fever, caused by lack of food, had carried off more than 150 persons. It appeared to be worth while to try the effect of an attempt to minister to them in their distress. He resolved, therefore, to revisit them, carrying with him wine and quinine, though, as ho said, " It was doubtful whether, in their then state of mind, any one would take such things from his hands." These were amongst the last words I heard from his mouth. In the meantime a party of the Hau Haus from Taranaki had crossed the country to Opotiki. They had determined early in the year (1865) to carry the war to the opposite extremity of the Island, and to divert part of our troops thither. So they marched across to Taupo Lake, and thence to the Bay of Plenty. On their way they passed near to the station of a missionary (Mr. Spencer), who has remained through all these troubles unharmed at his station on Tarawera Lake. They reached Opotiki seven days before the vessel which carried Mr. A'olkner thither. Every night the leaders of the party harangued the people on the conduct of the missionaries. One who heard them reports that the burthen of their discourses night after night was the same. " These men (said they) were always telling us: 'Set your affections on things above, not on things on the earth ; ' and so while we were looking up to heaven our land was snatched away from beneath our feet." After two days the house of the missionary was plundered, and the goods sold to the bystanders. After five days more a small vessel was seen entering the river, and it wag discovered that Mr. A'olkner was on board. As the people cluster on the banks of the river the Hau Hau leaders pointed to tho vessel as a proof of the magical power of the new worship which had so brought their betrayer into their hands. 10. Even after this foul crime the superstition continued to spread. Patara, who was himself not present at the murder, proceeded with his party to Turanga. He kept Kereopa in the back ground, and spoke of the murder as a misfortune, a great blow to a good cause. Even then, men who had for years exhibited a sober, thoughtful character were induced to join, carried away by what the Maori calls " Aroha kite noi " (pity for the people), what we should call a strong sympathy with the nationa cause. The Maoris were strongly affected by the novel practices and the burthen of the worship, and especially by the bitter crying and wailing for their countrymen slain, and their land seized by the Pakeha. It is plain that this delusion has no real strength, and that Maoris, drawn by various motives and influences to support it, do not fight as well as others have done who believed their quarrel to be just. And we see that those who have recently submitted and taken the oath to the Queen, have, as a matter of course, dropped at the same time the Hau Hau worship. Moreover, this very crime has roused into action a body of Native allies in the same part of the Island —a resolute minority whose bravery and knowledge of the country have proved of essential service. A like effect was produced, as you are well aware, in Hawke's Bay and elsewhere. Perhaps the Government may not be aware that some Native magistrates from the Gulf of Hauraki and the Thames came up to Auckland to propose a combined expedition of " all the churches " (as they worded it), for the purpose of crushing tho guilty tribe. At that time there was no person in Auckland to represent the General Government. The resistance then, on the East Coast is less formidable thau that on the AVest; still that radical evil remains of which the acceptance of the Hau Hau creed was an indication and a measure. The practical fact with which we have to deal iB this : the old feeling of distrust and exasperation towards our Government has been strong enough to lead thoughtful men, incapable of being parties to such acts, to join the Hau Hau cause, even after the commission of the great crime at Opotiki. This is our real difficulty ; the same in kind as ever, but greater in degree. I believe that this feeling is now more deep and more widely spread than at any time. I believe there are now many who are convinced that we are determined, even by fraud and violence, to get possession of their land, and force our dominion upon men who have never consented to it. Many, therefore, on their part determine to hold their own as best they may, and are content to sacrifice their lives in the contest. The state of tbe case is this :we have put too great a pressure upon these people, more than they can bear, more than we can continue to exert; we have driven many of the Natives into a state of determined resistance, bordering on desperation; we have brought upon ourselves the necessity of bearing burthens beyond our strength. Need of Peace. 11. The practical business before us is first to terminate the present evil state of things, and then to take such measures as may introduce a better state, and render it permanent. The obstacles to be

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overcome are not merely physical but moral, and such as mere physical power, even if it were at our command, could not remove. Moral means must be employed, and it is in the nature of such means to work somewhat slowly. For the whole country, for both races, peace is necessary. Some settlement is needed, such as may be depended on as complete safe and trustworthy. I think, Sir, there is no chance of any settlement, unless it be such as to show moderation, if not generosity, on our part, and to exhibit a clear distinction between the different classes of our opponents. As to the blocks included in the proclamation under the New Zealand Settlements Act, the reasons urged in my letter of the 18th July last for resorting to cession instead of mere seizure, appear to me to receive additional weight daily, as the real state of things becomes more manifest to ourselves, and also to our adversaries. If we considei the relations between the two races from the beginning, and the history of this quarrel, there appears no reason why we should make the terms of submission as exasperating, and not rather as palatable, as possible, consistently with the establishment of our authority and the permanence of peace. Our best security against a desperate effort being made by some section of the expelled Natives to re-occupy the lands taken, and the recurrence of such miseries as we have just emerged from, lies in our so acting as to turn the general opinion of the Maoris against making any such attempt, and so convincing the most hostile that they will have no support or sympathy from the great majority of their countrymen. Happily the language of the recent proclamations of 2nd September, 1865, shows that the more liberal course is proposed to be adopted,—"Out of the lands which have been confiscated in the AVaikato and at Taranaki and Ngatiruanui the Governor will at once restore considerable quantities to those of the Natives who wish to settle down upon their lands, to hold them under Crown Grants, and to live under the protection of the law. For this purpose Commissioners will be sent forth into the AVaikato and the country about Taranaki, and between that place and AVanganui, who will put the Natives who may desire it upon lands at once, and will re-mark out the boundaries of tho blocks which they are to occupy. Those who do not come in at once to claim the benefit of this arrangement must expect to be excluded." But a considerable time must be given for that proclamation to work its due effect. To require a speedy acceptance of our terms would be < o require that which, in the present disorganization of the Maoris, or rather in the new combinations into which the war has thrown them, is not possible. Besides, men who believe then onged do not very readily come into terms. The great principle of all our policy towards the Natives, the one hope of success in overcoming their fear and distrust of us was expressed by the first Native Minister in words which ought not to be forgotteu,—"The fears of the Natives can be calmed, and the peace of the country secured, only by a policy which seeks not theirs but them." (Mr. Richmond's Mem., p. 25.) 12. It is clear that no policy can succeed and secure peace for the future unless it be in accordance with the actual facts. And out of our troubles this advantage at least has come, that we have been brought by them nearer to the facts. The prisoners at Rangiriri, and again at Weraroa, have been treated as prisoners of war. It has been recognized as a fact that the tribes with which we are at strife are for the most part not in the strict sense subjects of the Queen, though included within the dominions of the Queen. Not only in newspapers, but in public documents, from the commencement of these troubles, the hostile Natives have been called rebels. It is now admitted that a large portion of the Native population has never intelligently, or at all, assented to our dominion, and therefore remains where Captain Hobson found it. Such portions of tho population aro still what the terms of our first national transaction with them admitted them to be, and what (as I showed on a former occasion) the Natives of North America have been uniformly recognized as being, that is to say —small communities entitled to the possession of their own soil, and to the management of their own internal affairs. This is for them an unsafe position, for they are subject to the risk of a war with their strong neighbour; for both it is an undesirable one. But it is their position at present. Those, therefore, who are actually in arms against us are to be regarded as enemies in war, —as hostile, but not criminal. If so, then so far as these communities are concerned, the Acts and Proclamations are not properly laws, but simply announcements that the stronger party will take the lands of the weaker. The taking itself is an act of war, an act of the Queen fo whom alone belongs the prerogative of peace and war. It is for the English nation therefore, finally to determine how the " giant's strength" of England is to be used. The object of the war itself was to repress and terminate the efforts which the Natives were making to set up a separate nationality, an effort dangerous to both races ; but though that effort was a great folly it was not a great crime. In respect, then, to these portions of the Native population, let our policy be confined to the facts. Let us not attempt to exert an authority which we do not in fact possess, and which upon our own principles we cannot claim. Let us abstain from any attempt at direct or internal control over them, and from threats. They may be warned of their insecurity, and assured of our readiness to extend our system to them whenever they may desire it. Then let us leave them alone until the present exasperation shall have ceased and time shall render them more reasonable and disposed to union. It is idle to attempt to force our laws on people whose very principle of union amongst themselves is a common determination not to submit to our authority, and whilst the attempt involves the carrying on of a chronic war, and destroying those whom we are seeking to benefit and professing to govern. Legislation in Native Affairs. 13. In proceeding to consider the mode of dealing with Native affairs for the future, I begin with the source of legislation —the General Assembly. We arc all agreed that the General Assembly should become the one acknowledged Legislature for both races, but it would be a great error to assume (as it is sometimes done) that the Assembly has actually attained this position. Can we maintain that the Assembly possesses constitutional and rightful authority over these people ? Rather, our business is to find some way by which it may be brought into possession and exercise of such an authority. As to the former, how is the English Crown to transfer to the Assembly the obligations which it

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has contracted in respect of those portions of the Native people who have assented and adhered to the authority of the Crown- —without their assent or manifest acquiescence—without at least every possible precaution and safeguard for a fair and beneficial exercise by the Assembly of that power which the Crown finds itself unable to exercise ? And as to the tribes who have never assented to our dominion, how can the Crown bestow on the Assembly an authority larger than that which (as we have seen) the Crown itself possesses over them ? Let no man think that the trouble of this island will be summarily terminated, or even diminished, by merely handing over this authority to the General Assembly without due provision for rendering the exercise of it safe and legitimate. I know that at this time there are, even in the peaceful North, quiet and well-disposed men who view any such transfer of authority, or (as they term it) the " ceasing to be called children of the Queen," with the liveliest apprehension and alarm. 14. Has it ever happened in the history of the world that a purely democratic body, with an Executive which depends solely on the will of the majority in that body, and where the members and the constituency belong to one race, has dealt justly with a race assumed to be inferior, and, in fact, unrepresented ? especially where the relations between them have begun in a state of open war. To this intrinsic difficulty add, in this case, the practical difficulty arising from the peculiar relations between the two islands at this time, the majority of the Assembly consisting of members from the Southern Island whose interests are much less closely connected with those of the Natives than are those of the Northern members, and much less seriously affected by a Native war. AYe do not trust men of our own race with the power of governing us until we have secured protection in many ways against their possible misuse of power. Can we say that no safeguards are needed for the Native race ? Can we reasonably expect a full acquiescence on their part until they see that some such safeguards are provided ? It should be remembered that in conferring powers on the Assembly a reservation has always been made of Imperial interests, and what interest is more truly Imperial than the honor and good faith of the Crown of England. Is is possible, then, to find safeguards which may be effectual for their purpose, yet such as to involve no minute interference with the proceedings of the Colonial Government, and no cost" to the English Government ? I suggest the following as being at piresent necessary conditions of safe legislation by the General Assembly : (a.) That the war be readily and completely wound up. If Government, by the Assembly, is to have a fair chance of success, let it have a fair start. The Assembly will not become more competent, or better disposed for calm and wise legislation, by having first to pass through years of slow and exasperating war. (b.) Representation being, under such a form of Government as ours, a necessary security for fair legislation, yet representation of the Native population being at present unattainable, let us do the best we can to supply its place. Before any measure of importance to the Natives is brought forward in the Assembly let a draft of it be published, with the proper explanations, in every district which has accepted our system, and let the people of the district be told that they are at liberty to address the Assembly by petition, and that any objections which they may entertain to such measures will in that way receive full consideration. No course can be less favorable to the peaceful settlement of the country, or to the contented acceptance of our legislation ; nothing more irritating even to friends and allies, than the sudden announcement that some novel and severe measure has been already passed without any previous intimation to them of what was intended. We shall not create confidence or make friends without openness and straightforwardness on these matters. (c.) Let no Act of the Assembly, affecting land still under native tenure or in any way especially affecting the Natives in person or in land, be brought into operation until the Government shall have received a notification from the Secretary of State that the Royal assent has been given. Experience shows that every real safeguard against hasty legislature will be a boon to ourselves as well as to the Natives. Administration of Native Affairs. 15. Equally serious is the question as to the administration of Native affairs. At the best, the Assembly can do little more than lay down sound general principles, with an outline of the mode of administering them. In this point of administration lies our great practical difficulty. I have already indicated that which appears to me the only mode of surmounting this difficulty; I will therefore be brief on this point. That for our success we need the continuous and consistent working of some one system for au adequate length of time most mon will admit. Can any man, who has watched the present mode of proceeding see in it any security for the permanance of plans and arrangements, or even for the fulfilment of promises ? Supposing a Native Minister to have formed some distinct conception of what ought to be done, his office will soon be transferred to another, who may have other views or none, so short-lived are our Ministers. One of two things must be expected to happen : either the substitution of officers will be left to go on at their own discretion, without aid and without check, or business must stand still until the new man has acquired the requisite knowledge. Such a state of things would be detrimental to the public service even in routine business, but in a business so novel and peculiar as this it may be fatal. With all this delay and uncertainty, projects put forward and never carried out, one expectation alter another raised and disappointed, the soreness and distrust of the Natives will remain unallayed, or even increased ; many more will come to say, what too many say already, that our plans and proposals to them are " maminga,"—devices to cheat them and gain time. Whatever be the outward form or nature of the Native Department there must be somewhere a set of persons entrusted with special functions, and possessed of special knowledge, and empowered to carry out steadily and uninterruptedly some one consistent plan, if we intend to have contentment and peace. A mere theoretical uniformity of the outside of our administration will only screen from view a fact which it will be wiser to recognize. Special circumstances need a special organization to deal with them. 18

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Plan proposed. The plan of internal administration for Native Districts, which I submitted in the " Notes on the best mode of working the Native Lauds Act," and which may be established by moans of that Act, interferes in no way with the existing institutions of the Colony. It lets them work and lets the Natives gradually and safely take their part in working them. Under it they must become really subjects. They cannot have the benefits of the system without working through the Government, and accepting the authority of tho officers of the Government in all matters of business with the English. They will become possessed of the franchise in common with the settlers whom the operation of the Act will introduce. For their own wealth and prosperity, they must become dependent on the presence of the Pakeha alongside of them. The only part of the system which will be in any degree independent will be the function of the Native Magistrates in deciding disputes among themselves—an arrangement which has always existed, and which relieves our officers, whilst it tends to satisfy within safe limits the desire of self-government. The Native Council will, if worked in the mode suggested, become simply a Board of Trustees for managing certain property, and appropriating the income amongst the purposes of the trust, similar to tho many local Boards which already exist in the Colony. The natural effect of the measures recommended will be to unite both populations and bring them under one system. 17. The Native Lands Act puts into our hands a lever wherewith to move the whole Native population, a means of establishing law and parrying settlement everywhere. If this great power be thrown away or wasted, the mistake will deserve to be classed with the most serious of the mistakes hitherto made; yet we shall waste it if we are content to use it for effecting purchases here and there in detached patches and on no system. This boon ought not to be given except on terms clearly expressed beforehand. Nothing can be so reasonable as to require that law shall be accepted and criminals given up in tracts in which we aro going to plant our people. The whole history of the colonization of this Island shows the need of this. Much suffering and cost have resulted from the scattering of settlers among populations subject to no control. Therefore, whenever a desire is shown to have the benefit of this A ct, that desire should be used as a means of inducing the people of a definite district to come within our system. Our great object should be to facilitate the transfer of their superfluous lands, and to clear those portions which will remain in their ownership of the perplexities and endless questions which arise amongst a people who have no written rules and no statute of limitations. Several districts might be marked out hero iv the north, and I presume in the south also, each as large as an English county, in which the people as a whole desire to be one with us, and to have the protection of one system. In some one of theso districts, let us make a beginning of a system such as has been proposed, and on it concentrate our strength. I use these words in the fullest meaning. It is a necessity for us to use every moans of influence to economize our power and combine our efforts towards this end. In such one district, or at the most two, let the plan be tested. If a clearly beneficial result be exhibited, that result will certainly tell upon the minds of the people throughout the Island, and will gradually dispel distrust and repugnance, as surely as the sun's heat removed the wayfaring man's cloak in the old fable. If the system we introduce is fo have the effect we desire, it must involve the acceptance of definite rules, and a real co-operation on the part of the Natives. To set up a system of nominal local government without such rules practically enforced, and without some exertion and sacrifice on their part, is to keep up a show which throws on the General Government the maximum of cost, and effects the minimum of good. 18. There is, I think, no lack of persons qualified for working this system ; in fact there were some fourteen months ago in actual service in the Native Department three men who would have been quite sufficient for the central Board. Two remain ; the third, who has left the Colony, might possibly be recovered. These three men possessed a large stock of knowledge, local and personal, extending over the northern and central parts of this Island, and each of them enjoyed the respect and confidence of the Natives of certain districts in a high degree. As to subordinate officers, there is a sufficient force, if we will confine ourselves to doing real work in limited districts, and so bringing one after another effectually within our system. In fact, in the mode proposed, the presence of one able and active man in each district will be all that will be permanently necessary. The gradual settlement of Europeans in the district, which must accompany the working of the Act, will, of course, bring with it a Resident Magistrate, and in due time a District Court. The main part of the purely Native work of the district will be done by the Natives themselves. Recent Enactments. 19. In all this business of bringing the Natives within the operation of the law, it behoves us to be ourselves careful to act according to law, and that, the law r of England. As long as we are able to say " this is part of the law of England," we ensure a certain degree of acceptance ; for the belief is widely entertained among them that our superiority is owing in great measure to the fact that by the act of writing we have been able to preserve and accumulate the experience and wisdom of past generations. They are willing to recognize in the greatness of our nation a proof of the excellence of our laws. But we offer them as a boon the name of English subjects, (as we aye now doing by the Native Rights Act" just passed,) and they find that in practice for them that name is to mean subjection to hard rules, which no man in England is subject to, they will not be eager to accept our offer. 20. A strong instance of the evil to which I am referring is supplied by the Outlying Districts Police Act, also just passed. From the beginning of our connection with the Natives, the one principle which has been more than all impressed upon them as the distinguishing excellence of the law, not only of England but of all civilised nations, is tho principle that crime is to be avenged by smiting the actual offenders, and not by r visiting the whole tribe with war; the more advanced among them have learnt to accept it as such. The recent enactment embodies the opposite principle. It makes it lawful for the Governor to

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take land at discretion and appropriate it for purposes of settlement, wherever a supposed criminal is not given up on demand. The demand may be made on rumour or suspicion, for no previous inquiryis required by the Act; all lands alike are made subject to seizure, with only one exception applying to a very rare case. To the Natives this must appear tyrannical. There exists amongst them no organization for the purposes of police, and any persons who may be disposed to apprehend offenders can do so only at the risk of civil war. Is this to be to them tho manifestation of our authority and government, to cast on them the very work which we took upon ourselves in the beginning, and to punish them by seizure of land of all alike in case they fail to effect that which we confess to be beyond our own power? Can this appear to them anything but a device for getting land? As to the suggestion that there is some English precedent for this enactment, true it is that in old times the inhabitants of a district were under pledge for the peace of the district, and were liable to the extent of a fine to be levied upon the district in case of a person suspected not being forthcoming. Nothing like the present enactment has proceeded from the Parliament of England, so far as I know even in the worst times. Tho circumstances attending the passing of this Act were singular. Misgivings as to the probable effect of the measure were strongly expressed on all sides. I do not learn that any one member gave it a cordial support; but it was a Ministerial measure, and at that time the opposition were not willing to give the Ministry any ground for resigning. Amongst ourselves of late years much has been said of the necessity of keeping questions of crime apart from questions of land. This seemed to be one of the few points upon which men of all ways of thinking had come to an agreement; but all our experience is now put aside. The new enactment affords a striking instance of the mode in which measures, which are at first defended only as exceptional come to be extended to entirely different cases. The seizing of the land of innocent men for the offences of others whom they could not restrain, and did not aid, was recently justified in the discussions on the New Zealand Settlements Act, only as being a consequence of war. It is now attempted to make it a part of the ordinary and permanent law, and this too at the very time when the principal is abandoned in the practical working of the original enactment. 21. Another instance is found in an Act passed in the sessiou of 1861, intituled, "An Act enabling Land to bo taken for Roads and other public purposes through Native and other Districts of the, Colony" (13th December, 1864, No. 5.) The effect of this enactment is to assert a general authority to take lands for roads, &c, at the discretion of the Government, whenever and wherever the Government may see fit. The ordinary English provisions for securing a safe exercise of this power in each particular case are omitted, and resistance to such taking is made a ground for taking more, and for applying to the case the provisions of the New Zealand Settlements Act, which in this case also are to be made a permanent part of the law of the Colony. Thus within twelve months two _\cts have been passed, which, if they should actually remain as law, would leave to scarcely any Maori in the country any security for the retention of an acre of his land. To these enactments the objections which were urged by the Secretary of State against the New Zealand Scttlemerits Act apply in their full force. In consequence of those objections, it was enacted in the session of 1864 that the New Zealand Settlements Act should coutinue in operation until the 3rd December, 1865. In the session of 1865, the Outlying Districts Police Act was passed, by which the extraordinary powers given by the former Act are in fact revived and greatly extended: for by the former Act the power of taking land for settlement is to be exercised only in cases where at least a " considerable number of persons shall have been engaged in rebellion against Her Majesty's authority;" whereas, under the new Act, it suffices that a single person be supposed to have committed a crime, or that a single suspected criminal be supposed to be concealed in any district. Summary. 22. Thus, Sir, in this letter aud the previous communication taken together, I have drawn the outline of a plan, by which we may hope to arrive at a better state of things. I should have no heart for entering so fully into the subject if I did not believe the way to be still open. There is no reason for desponding about this people, but great reason for changing our mode of handling them. AYe have tried force, we have tried diplomacy, we have tried money. AVhenever we resort to a sound and consistent policy, clearly and openly laid dowu, and steadily acted upon for an adequate time, then we shall succeed. We have abundant resources and means of influence, if only they be used aright. The Maori population is to be rendered contented and peaceable by the same influences as other populations. 23. There is even much to favor the undertaking in the present state' of men's minds on both sides. It is now becoming manifest to the leaders of the Maori race, that the scheme of separate government for themselves cannot succeed. Many of them are even now slowly receding from it. What is now wanted is something to re-assure them that it is safe to trust us, and this must be derived from some exhibition of moderation and generosity on our part in winding up the war, and from the gradual establishment of a beneficial system for the future. On the part of the settlers at large, there is no hindrance now to the establishment of a just and well-considered plan. As a body, they did not desire tho resumption of hostilities, though the war of course became popular for a season. They are now returning, according to the wont of Englishmen, to a cooler view of things. The Maoris have w 7on respect by their manliness in standing up in defence of their nationality against immense odds. It is now seen that the peace of this Island can be kept only by the aid of the Natives themselves. The great body of intelligent settlers are disposed to support a fair and equal system in Native matters. Of the particular plan here suggested, the details must be gradually worked out and modified by experience, and after many conferences with Natives. It appears to me to open to the Home Government a way of escape from the pressure of obligation towards the Native people, which that Government knows not how to discharge, yet cannot honorably abandon. Along with the gradual extension of the system, the home interference and control would be gradually withdrawn. lam bold enough to believe that uuder the operation of such a system, steadily continued, this Island—even tin; minds of its Native inhabitants—may be in less than twenty years subdued, and that by a process beneficial to every man of both races.

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24. The foregoing may be summed up in the following recommendations, which are to be taken in connection with those appended to the " Notes on the Native Lands Act." 1. That the war be brought to an end speedily, and that on terms of cession of land, instead of mere seizure. 2. That until the Natives be represented in the Assembly, no Bill affecting the Natives be brought forward until a draft of it shall have been published in every district which has accepted our system, and a reasonable time given for petitioning the Assembly on the subject. 3. That no Act affecting land under Native tenure, or in any way specially affecting the Natives, be brought into operation until the Royal Assent has been given and duly notified in the Colony. 4. That the Public AVorks Lands Act, and the Outlying Districts Police Act, be not brought into operation. I beg, Sir, to submit these suggestions to the consideration of the Government. I also beg that a copy of this letter, together with my letter dated 18th July last, and the accompanying " Notes on the best mode of working the Native Lands Act," may be forwarded to the Right Hon. the Secretary of State for the Colonies. I have, &c, The Hon. the Native Minister, Wellington. Wm. Martin.

Enclosure 3 to No. 31. Sir AVilliam Martin to the Hon. Native Minister. Sir,— Auckland, 18th July, 1865. I have the honor to report to you that the Notes I undertook to prepare on the best mode of working " The Native Lands Act," are now completed and in print. Some copies are forwarded by to-day's mail, the residue will be sent by the next. In these Notes I have endeavoured to set forth the several parts of the system to be purlsued in their ordinary relation to one another, confining myself to questions of a political kind. Therefore I have contented myself with pointing out that for the success of this undertaking we require, first of all, a state of rest and peace, without inquiring how rest and peace are to be attained. But knowing your desire to bring the Act into operation, and considering the benefits which may be expected to accrue to both races from its success, I have been led to reflect seriously on the way in which the pacification of the country may be effected. I now beg leave to offer for your consideration a few words on this point as a sort of postcript to the Notes, praying that the paramount importance of the subject may be my excuse. It is my conviction that the course of proceeding devised in 1863, is not the best for the purpose. We ought not to be surprised if it be found that measures adopted in a season of excitement and panic, do not approve themselves now, after a fuller consideration and a longer experience. The necessities which press upon us at this time are the following—lt is necessary to quiet the minds of the Natives, many of whom in different parts of the country, apprehend that the part they have taken may expose them some day to serious consequences, and therefore seem to have no interest in the restoration of peace. Also it is necessary to get rid of the grievous burthens which must continue to be borne by ourselves, so long as we are holding possession of land by mere force, and many of the former occupants are sitting by saying—(as it was expressed at Hangatiki)—" Neither yea nor nay," to our doings. Further it is necessary that the attempt of the Natives to set up a separate and independent Government for themselves be seen to have failed so signally, as to leave no temptation to repeat the experiment. Now, Sir, to my mind, the only direct and sure mode of reaching all these results is by the way of an open and express cession of land, accompanied on our part by an amnesty, large enough to include at any rate all persons who have committed no offence against us beyond that of bearing arms in the war. A piece of territory being once so ceded no hope or thought of recovering possession of it at some future time will be entertained by the hostile Natives. By the abandonment of a delusive hope their own minds will be so far set at rest. Thenceforward our possession will be undisturbed, and a great and continued outlay, which we must otherwise incur, will become unnecessary. As to the Maori King and the hostile tribes, the most manifest proof of failure will be such a cession : To have to retire before the large force which we have had in the field against them may not be regarded by themselves or other tribes as a complete defeat, but to be constrained to cede land in the centre of the King's territory, and publicly to cut themselves off from all hope of recovering it would be an undeniable proof of defeat and failure. I remember how strongly the need of such an amnesty (or " murunga hara," as they call it) was felt, and how the subject was discussed in AVaikato, after the cessation of the former hostilities. There is ground for hope that a like feeling may be taken advantage of for granting the land, and that through the intervention of friendly Chiefs, a settlement such as I have here suggested mayrbe brought about for the real interests of all. I have, &c, The Hon. the Native Minister. Wm. Martin. Suh-Enclosure to Enclosure 3 in No. 31. Notes on the best mode of Introducing and Working " The Native Lands Act." In compliance with requests made to me by the Honorable the Native Minister and the Honorable the Attorney-General, I have put together the following Notes on the best mode of introducing and Working "The Native Lands Act," so as to render the Act most effective for its purpose, and most conducive in its effects to the peaceable settlement of this Island.

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Though I have done my best to keep these remarks within compass, yet they have unavoidably run to some length, In fact, by the course of events, and by repeated discussion during the last few years, the several parts of the Native problem, and their mutual relations and connections, have become more manifest, and the order in which they may be attempted with test prospect of success more apparent. This has rendered it necessary for me to touch on nearly every part of the work to be done, in order that each part may bo seen in its proper place and its due proportions. If some of the proposals herein made appear at first sight inadmissible, I only ask for a patient hearing and serious consideration. For the views here expressed have been formed not lightly or rapidly, but after long continued observation, and by the aid of light drawn from every available source, and after much conference with persons of various classes and of different ways of thinking on these subjects. I regard this Act as the turning point is our work. If it can be brought into smooth and safe operation, and be made acceptable at the outset of our proceedings, it will powerfully attract the Natives to our system, and give us the means of gradually and quietly introducing that system into all parts of the country. 1. For this end the greatest care and forethought are required, not only because the work is in itself complicated and difficult, but also because we have to overcome great obstacles. We have to commend our measures to a population in which there exists a wide-spread and deep distrust of the Government. There are, it is true, many amongst the Natives who are attached to us, and who are convinced that in union with us, and conformity to our usages, lies the only hope of their race. Yet even these are perplexed and harassed by the contrarieties of our so-called policies, by the divisions of our political parties, and by the language of our newspapers. AYe do not readily estimate the effect of these things on the minds of men keen and shrewd, yet ignorant and ill-informed, and at the same time well aware how vitally their own interests may be affected by them. Another large portion of the population is demoralised, sore of heart and almost desperate, driven half mad by losses and sufferings, by uncertainties and fears. Everywhere the land needs rest. Time is needed not only for the settling down of men's minds, but also for the preparation and revision of our own plans ; for the success of this measure must depend entirely on the manner of working it. It might be so worked as even to complicate our difficulties and diminish our influence. The solicitations and the keen competition of land buyers, working secretly and sometimes unscrupulously against each other might, unless checked by proper regulations, raise up again, even in an aggravated form, a general irritation and opposition, such as were produced by the old system. Our one hope of success lies in our proceeding on a very limited scale and in a very measured way in the outset, and in our mode of proceeding being so framed as to exclude to the utmost all sources of irritation, and to produce by the most facile mode a clearly advantageous result. Considering that we have to construct and test our mode of proceeding as we go on, and to ascertain by exjierience many things which no forethought can suggest or devise ; considering also the extreme difficulty of finding agents fit for this work; it is evidently necessary to begin our work on a very limited scale and in some district which is well prepared to receive our operations. We may be quite sure, that in working in such a district, and in appearance for that district only, we shall be really working under the eyes of all. Our operations wiu be keenly watched by the Natives in all parts, and the benefits or disadvantages carefully noted and discussed everywhere. On the other hand, to keep a number of operations going on at the same time, and that with inferior instruments, would be to increase unnecessarily the chances of error and failure. If our work shall be successful in a single district, and our system be seen to yield real and substantial benefit to those who come within it, that system will readily find acceptance elsewhere, and in due time spread itself through the country. The Certificate. 2. The principle of " The Native Lands Act" is to make the certificate of the Land Court the primary evidence of Title, and the basis of all our dealings with the land : a principle which appears to me sound, and even necessary, as the only mode of avoiding great difficulties. The requiring of such a certificate can be no cause of suspicion ; because every man sees that for the peace of the land, and as a safeguard against fraud, some public inquiry and some certificate to show the results of the inquiry are necessary. To require a certificate which asserts on the authority of a Native Court that a certain block of land, properly identified and delineated thereon, belongs to certain Natives enumerated therein, and to require and connect therewith an actual survey and marking out of the land, will be seen to be a reasonable and necessary precaution for the good of all; a needful security against mischief between the races and even war. We know that the offer of a Crown Grant for their land is apt to be regarded by the Natives with suspicion, and declined as seeming to involve an admission tbat their title to their lands is defective, or that it depends on the Pakeha rather than on their own forefathers. Another, and a weighty reason for preferring the certificate is, that a Crown Grant would at once bring with it our English Law of Real Property, our canons of descent, as well as a large body of rules not understood or even heard of before; and so w rould cast upon the Natives a burthen which vv ould be to them intolerable. We must be on our guard lest we discredit Crown Grants, so as even to render it impossible to induce Natives to accept them ; which we certainly shall do if we introduce them as a means of security and protection, and if afterwards a crop of questions and disputes shall grow up, not to be settled except by reference to the Supreme Court; that is to say, to a Tribunal which to the great body of the Natives is by reason of distance, cost, and their own ignorance of our procedure and our language practically inaccessible. Mr. Dillon Bell, in moving the second reading of " The Native Lands Bill," clearly pointed out the nature of this difficulty and the necessity for propounding for the Native Districts a body of Rules touching interests in land and the transfer and devolution of them, which should be substantially English but adapted and simplified. I believe the remedy proposed by Mr. Bell to be perfectly practicable ; but until we are in a condition to propound such Rules and to set up local and accessible Courts to interpret and administer them, I think it is absolutely necessary to avoid all these sources of difficulty and to keep within safe limits. The 19

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f-crtificate will give us all that in the first instance we need; for the first thing is to mark out the boundaries of separate pieces of property and to register the owners thereof; to gather those owners into groups, and to bring them as groups into legal action. This is the first step. The individualisation (of which much has been said) is a further step, for which every facility ought to be given, but for which there is no reason why we should wait; as the members of the several groups of owners may join in letting or selling the land. Much of the soil of England was at one time in a similar condition. Selling and Letting. 3. The certificate of title, a document created by an Act of the Assembly, will confer on the holders of it such powers as the Assembly may think fit to give, and none other. Those powers should be, in the beginning, the power of letting land for a term not exceeding 21 years, and the power of sale. To make the exercise of those powers safe, it should be enacted that all contracts for letting should be entered into, and the lease in every case be executed, by the parties in the presence of a Civil Commissioner or of a Resident Magistrate, who should attest the same, and should certify that the lease and a certified copy in Maori had been read over to both parties in his presence, and that both parties understood the same. The rent should be made payable to some person or persons named in the lease, so that no inconvenience should arise to the lessee from the number of the lessors. In case of the death of any of them, the lessee would have nothing to do with any question which might arise as to the division of the rent amongst the persons entitled thereto according to Native custom. That question would be settled by the Resident Magistrate, on the finding of a Maori jury, after the manner of a Copyhold Court. It would be convenient for the officers concerned in this business, that all such leases should be conputed and made to run from fixed quarterly days, so that the rents may fall due at the same time. At present there is often found a considerable disposition to let lands where there is no great willingness to sell. And the letting of lands will of itself, if properly managed, quietly and effectually open the country and prepare the way for sale. For it will put us in possession of a survey of the lands and a complete register of the owners of the several blocks. In this way the title will be made clear and safe beforehand ; and roads —not merely main roads, but smaller roads also—will be opened peaceably and in all directions for access to the lands under lease. Public Auction. 4. As to the power of sale, to make the exercise of it most attractive and satisfactory to the seller, and to exclude all private intriguing, all sources of jealousy and irritation, one precaution is necessary and sufficient. Let no Native land be sold under this Act otherwise than by public auction. Let the Natives see that their interests .are fully protected, and that land is sold by the Government on their behalf just as the Government sells its own land. The auction should take place, after due notice, in such one of the English settlements as might be appointed for that purpose. The name and description of the purchaser being reported to the Civil Commissioner of the district in which the land was situate, he would cause the conveyance to be executed in the presence of himself or of some Resident Magistrate of the district, and forward it to the office in Auckland. The office would receive the purchase money and either remit it or deposit it, as desired by the sellers, and would hand over the conveyance to the purchaser. Thus the great inconvenience and evil, which often attends Government dealings with Natives, of keeping a number of persons hanging about the town for days together, might be avoided. The purchaser should, after a certain time, be entitled to receive a Crown Grant. It would be a valuable addition to this plan if some convenient mode of investing the proceeds of sales could be opened to the Natives, where they might obtain good interests on their deposits, and so might see that they derive a substantial and permanent benefit from our management. The frequent and natural complaint of the Natives, that tbe land abides whilst the payment perishes, might thus be obviated. The present Savings Banks have been instituted for a different purpose, and by the limited amount to be deposited, and by other regulations, are rendered unfit for the object here contemplated. Yet the political advantages to flow from any system which should attract Native investment, and so bind Natives to the Government, are great and obvious. For the attainment of a political end it would be wise to lay stress on those economical considerations, which ordinarily prevail in such matters. If made attractive in this way, the selling of land may be expected to be, after a season, resumed freely. It is possible that in particular cases some inconvenience may be felt, but I have no doubt whatever that (if we look to the general working of the Act, to the attractiveness of its operation, and the peace of the country at large) tho advantages will be found to preponderate enormously on the side of the sale by public auction. By no other mode can the settlers at large be secured against the forestalling of the land by a few ; and by no other will the Natives be satisfied that they receive the fair value of the land. Cases will be found where money has been received by Natives as an advance upon a contract or understanding for sale of land ; and such cases will need to be specially provided for. The persons who have in this way sought to gain a preference over others have no claim to consideration on the part of the Assembly or of tho Government, inasmuch as it is provided by the express terms of " The Native Lands Act" itself, that "Every contract, promise, or engagement, for the purchase, lease, or occupation of any Native land, or of any interest therein, made prior to the issue of a certificate of title under this Act, shall be absolutely void;" to which enactment, moreover, attention has been drawn by an express notification in the Government Gazette. Care should also be taken that the Native seller should not have the benefit of such unlawful contracts ; for which purpose, upon the land being afterwards sold by auction, an amount equal to that which had been already received uuder the private dealing should be deducted out of the purchase money, and paid into a fund for the general benefit of the district. Land Court. 5. The constitution of the Land Court by which the certificate is to be given is a point of vital importance ; for it is provided in section 14 that the certificate shall be conclusive as to the Native

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proprietors of the land for which it is issued. The Court should then be so constituted as to give the ■utmost attainable security for the correctness and trustworthiness of the certificate. It is essential that the Government shall be able to entertain a well grounded assurance that it will be safe and right to act on tho certificate. The constitution and procedure of the Court should be such as to exclude, as far as possible, all deception or collusion. If the Court consists of too few members, the certificate may be simply a snare to the Government. The safest mode appears to be, to form a panel of the leading men of the ■district, and out of them to select not fewer than six as a jury, either by ballot, subject to challenge, •or by a process similar to that of striking a special jury. They should receive a payment for their work, so much a day; the regulation of the sittings, both as to their length and frequency, resting with the President of the Court. The utmost care should be taken to secure the due circulation of notice of the sitting of the Land Court, and ample time for attendance should be allowed. Applicants for certificates should be required to have the boundaries of the land surveyed, and actually marked -out upon the ground, before the application is made. One System for Land Buyers. 6. It appears to me essential to our success that the system to be established should apply to all purchasers equally, and that the 34th section of the Act should be repealed. A trustworthy Land Court being ouce constituted, let all transactions pass through the Court on the same footing. Let all purchases be subject to one and the same course of procedure, and let the efforts of the Government be confined to the establishment and working of a sound system for the use and benefit of all. Any regulation which is needed for the guidance and protection of the buyer on his own account, must be equally needed for the guidance and protection of the buyer on behalf of Government. Reserves. 7. All lands to be reserved for Native cultivation or occupation, under the 9th section of the Act, should be separated by natural boundaries from lands to be settled by the Pakeha. This is to be desired, not only for the sake of avoiding strife between the Native and the European neighbours, but also to enable tho Natives to cultivate within a ring fence, and to spare them the cost of a fence for each separate holding ; which cost will sometimes equal, or even exceed, the value of the land to be included within such fence. Endowments. 8. By " The Native Lands Act," sections 21 and 23, it is provided that the Governor may, at the •request of the owners, mako regulations and plans for settlement of Native lands : and that in such regulations reserves may be mado for public roads and highways, or for schools, hospitals, churches, &c, and for the endowment of such institutions, or for any other purposes of public or common utility to the Native proprietors. On our success in providing in every Native District an adequate endowment in land for the purposes of law and education, must depend in large measure our success in attaining our great end. In no other way can success, if attained, be rendered permanent. No doubt, grants of money made by the Assembly may be depended on to meet the cost of introducing whatever isystem may be thought the best, and of sustaining it for a time; but such grants can hardly be depended on for upholding it through a series of years. AYe must look elsewhere for the means of fully establishing and permanently supporting the system, so that it may have time to do its work ; ■which, in the nature of things, cannot be done rapidly. Wherever the new Native Lands Act shall be brought into operation, let it be made, as far as possible, a condition that a liberal endowment be first made for the support of the administration of law, as well as for schools where the English language shall be taught. There is nothing unreasonable in urging strongly, at the commencement of our undertaking, such terms as are in themselves necessary and essential to =cpu™ for it a successful issue. The attractiveness of the Act, so far at any rate as the power of Jetting land is concerned, gives us an opening for effecting our purpose. So soon, then, as any district shall show a desire to receive this Act, that desire should be met by a readiness to confer the boon, ou a pledge being given by the people of the district, after a public meeting, that the Pakeha settlers who may be introduced into the district under the operation of the Act will be secured from disturbance and lawlessness; and for that end, that the Natives of the district will concur in establishing law in the district. The best evidence of the assent and co-operation of the Natives will be the appropriation of land as an endowment for the permanent maintenance of the administration of law and of instruction in the English language. If, we allow them, what they may reasonably claim, a fair voice in the management of the properties •so appropriated for endowment, and in tho application or apportionment of the income derived from them, we may count on their hearty co-operation. There are especial reasons at this time why we should endeavour to build on a foundation of endowments voluntarily furnished by the Natives themselves. It is well known that Government contributions in money are regarded by many of the best and ablest of tho race with much suspicion, as a sort of bribery from which they count it a point of honor to stand aloof. Nor could anything be less wise than to pauperize the people, and to destroy the self-relance of the Native character, a point in which it greatly resembles our own. It may be comparatively easy to produce an outside show of order ; but if there be on the part of the Natives no sacrifice or effort to maintain fhe system, no contribution of money or labour towards it, there will be in it little of reality or of permanence. There is in the Native population a readiness to make efforts and sacrifices for the support of institutions which they clearly see to be beneficial, and in the working of which they have a practical share. Of this a striking example is furnished by the conduct of some of the tribes of the district between the East Cape and Poverty Bay. Within a period of five years, from 1859 to 1863, and that a period of distrust, trouble, and war, there were contributed for the endowment of Native clergymen more than £1300, and for the endowment of the Bishopric of Waiapu (after the decease or resignation of the present Bishop), fhe sum of £589 lis. 9|d. Every one of these sums of money represents a large amount of effort and co-operation, for the Maoris are rich in land, poor in money. We need not

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doubt, then, of their willingness to contribute land towards the permanent support of institutions for the purposes above mentioned, provided they have themselves a reasonable share in the working of the system. Care will of course be needed to select for this purpose lands which, by reason of some peculiar advantage of position, may be sure to be in demand for permanent occupation by tenants. In cases where, from one cause or another, it may prove impracticable to provide a direct endowment in land for the purposes here mentioned, an indirect mode of attaining the same end will be afforded by the system of public sale. A certain percentage on the proceeds of the sale may be retained and invested in the purchase of land to be held as such endowment. Administration of Justice. 9. Thus far I have considered the operation of the new Act as capable of being made instrumental for the purpose of reviving or creating among the Native population a sense of the substantial benefits to be derived from their connection with us. I have been looking chiefly to present difficulties, and the prospect of escaping out of them into a bettor state of things. But in all our operations it is necessary to look beyond this, and even from the beginning so to direct and shape our proceedings aa may most facilitate tho establishment of a permanent and legal order of things. Therefore, from the very beginning, we must form to ourselves some distinct conception of that which we desire to establish. It is quite true that there is no use in attempting to force institutions on people who do not desire them, or to push them on over-rapidly whilst a population is ill prepared for them ; but it is exceedingly important to miss no opportunity of introducing them that may offer itself. For this end, then, it is necessary that we shall have considered the whole matter beforehand, and formed our plana for acting when the time comes. I think it will be admitted by all, that our system ought to be something simple and intelligible in itself, and free from all complication and causes of unnecessary delay. Moreover, that it should be so modified from our own system, and so far adapted to the condition of the Native population as to remove prejudices and obstacles, and to make the transition from the one to the other as easy as possible ; lastly, that it should be such as may be combined easily with the general system of the Colony, and ultimately blended therein. If the procedure be tardy or costly, or clogged by a necessity of referring frequently to the Seat of Government, and especially of references backward and forward from one Government office to another,—from one person uninformed and uninterested to another equally so, and back again,—it will most surely fail in its object; it will never come to be valued or respected by either race, and it will never beget a peaceful and contented spirit in the population. To the Maoris resident in the Native districts, the necessity of referring for a settlement of disputes to the Seat of Government, or to the nearest English town where a Judge is to be found, is a very great grievance and evil. When parties come on such an errand, they often hang about the town with wives and children, either at the charge of the Government, in which case they linger on, becoming gradually pauperised; or if at their own charge, incurring debts on a ruinous system of credit. Of course theleading practitioners, whose hands are already full, arc not inclined to take business of such a kind. Even if such a man is moved to take it up, all must be done through interpreters, and therefore at an increased cost. And it may after all be found that the ultimate point in dispute is one which is excluded from the jurisdiction of our ordinary Courts. If we wish to commend to the Natives our ways of proceeding, we must clear them of the many difficulties which beset them now. In this respect, the present state of things is more likely to create disaffection than to remove it. Instead of bringing the Natives to our Courts of Justice, we must carry our Courts to them. How, then, is a speedy and efficient administration of justice between the two races, in matters criminal and civil alike, to be established and maintained ? Native Districts. 10. In the first place, I assume it as settled, that for this purpose the country is to be divided into districts, in each of which districts a Civil Commissioner is to be placed. It appears essential that the district should be no larger than such as can be effectually supervised by one man, subject only to such amount of control from the Seat of Government as may be absolutely necessary —and even that control exercised as far as possible through the Commissioner himself. The district of the Civil Commissioner should not be merely a geographical division of the country, but rather its extent and boundaries should be determined by considerations of relationship and intercommunication subsisting between the Native inhabitants. It should comprise tribes or divisions which have a common sentiment and generally act together, already feeling themselves to be naturally one, and which are thereby in a certain degree prepared for union of administration under our system. In the following remarks it will be desirable to sketch a district fully organized, with ail such subordinate officers as may be needed in any case; but Ido not mean that we ought at once in every district to s.eek to set up such complete organization. On the contrary, I should prefer to set it up nowhere, except on the requisition, or at least with the assent, of the population. In a large part of the country, our objects might for some time to come be best advanced by the appointment of a single officer, who should be rather a resident than a magistrate, ready to advise and guide whenever there should be an opening, but claiming no coercive jurisdiction whatever. Such an officer would be the root out of which the full system might grow in due time. I return now to a sketch of the system, as it should be completed and established, whenever the course of time and circumstances may allow. A completely organized district would have for its officers a Civil Commissioner, Resident Magistrates, and Native Magistrates. Out of the number of the Resident Magistrates the more experienced and able would be selected to fill vacant Commissionerships. The several places and functions of these officers should be so clearly defined as to prevent clashing. A multiplication of officers either coordinate with one another, or in an ill-defined subordination, is sure to be a source of weakness and inefficiency. Starting, then, from these principles, we shall consider first the relations of the several parts of the proposed system, and next the rules by which the several parts are to be ordered ; with a view throughout to the utmost simplicity in the organization of the district, and to its completeness, as far as possible, within itself.

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Native Courts. 11. In tho first and lowest place, wo shall have Native Magistrates, settling questions between Maori and Maori. It is necessary to uphold these Maori Courts, not only because we have in some sort ourselves set them up, but also because it is impossible in dealing with this people to create and keep in efficient working any system in which they do not take some practical part. Above all it is to be remembered that these Courts are absolutely necessary for the purpose of effectually carrying the operation of law into the remoter parts of the country and over the whole of the scattered population. If this object is to be effected, it must be by guiding and supervising Native efforts for that end, not by attempting to do the work ourselves. Wo have neither money nor men for so vast an undertaking. But if it be necessary to sustain these Courts, not less necessary is it to restrain them ; for there is no doubt that at this time they are, in many parts of the country, often greviously perverted, and made instruments of oppression and wrong. The smallest grievances are hunted up and arbitrarily treated as offences against the law; and even in the case of real offences, fines altogether unreasonable in amount are often imposed, out of which the administrators of the so-called law pay themselves for their trouble. Bad as this state of things is, no better could be reasonably expected from the history of the system, which I will briefly recount. We began some years back by appointing certain Chiefs to administer justice among their own people. AYe called them Assessors, though in the Maori forms of appointments they were called Kai-whakawa, or Magistrates. It was of course intended that they should learn something of law before they began to administer it. With that view, it was arranged that the Chief English Magistrate in each district should hold periodical circuits, and so both orally expound and practically exhibit to the Assessors the rules and methods of our laws. Unfortunately it came to pass that the proposed circuits were not holden and the desired instruction not given, though the need was growing every day. Accordingly the Native officers set themselves to do the work in their owu way. The result has been such as strong wills acting ignorantly, with little instruction and less supervision or control, might be expected to produce. The new principle of lawwas taken up earnestly, and carried through the country by Native agents, just as the Gospel itself had been to a large degree carried through the country in former years. AVhat was understood by law was this : that all grievances and causes of strife were to be removed for the future by peaceable means —by decisions formed and penalties imposed after public discussion; not as in old times, by intimidation or force. Each set of administrators set itself to carry out this general principle as best it could, and assumed at once the fullest powers for that purpose; that is to say, the power of determining both what matters should bo treated as offences, and also the rule according to which they should be dealt with. In general, they followed so much of tho English procedure as they happened to have learned by observing the practice of English Magistrates. It is now essential to supply the omissions of past years, to try to complete these our own halfformed institutions, and to supply the instruction and supervision which are necessary to insure their usefulness. In effecting this reform, it is necessary to deal tenderly with all that exists and which has acquired a certain degree of acceptance, and to use and incorporate it rather than to destroy it; especially to accept and encourage the spirit of self-reliance and self-government, which, however untrained and undisciplined, is present in the Maori mind. The first step, then, towards terminating this lawlessness under the name of law, is to establish and carry out thoroughly the fundamental distinction between the two separate businesses of making law aud of administering law ; between Councils to frame rules and Courts to enforce them. The distinction itself is apparent to every intelligent Maori when he is reminded of it; and is clearly expressed in his own speech. For the two functions can hardly be more aptly distinguished than by the two phrases, whakatakoto tikauga, literally to lay down a rule; and whakahaere tikanga, literally to set a rule agoing, that is, to put it in operation. For this end the jurisdiction of these Courts should be exactly defined, aud a careful supervision kept up to prevent any transgression of the limits assigned to thorn from time to time. The magistrates must be tied down to written rules, and checked as English Magistrates are checked, whenever they act in any way in excess of their jurisdiction, lv «ase of any such Court assuming to exercise a jurisdiction not so given, a reference should-bo open to the Court of the Commissioner, who should have power to award damages. The Commiss'oner would possess the means of enforcing his own decision, the salaries of the Nativo Magistrates being paid through his hands. As to the constitution of these Courts, the first reform needed is to remove their tumultuary and irregular character, and to reduce them within proper limits as to number and order. Yet as the men who are now considered members of tho village assembly, are equal or nearly so among themselves, and have been in possession of equal power, and are about equally informed or equally ignorant, it is not practicable or even reasonable to begin by disfranchising a portion of them. The simplest way appears to be to treat all these persons as jurymen, with no other limitation than that which is imposed by our own Colonial Jury Law, namely, that they bo persons of full age and of good repute. The list should be subjected yearly to a public revision. The process of winnowing such bodies is one which the Maoris well understand, and has been brought into operation already in the North. The experience of Sir Alexander Johustone, when, many years ago, he introduced a similar jury system among the Natives of Ceylon, showed that great social benefits might flow from it. To be on the list was to be certified as a man of good character and trustworthy ; so a place on the jury list became an object of village ambition. On every trial the Maori Magistrate should act with a jury of four persons selected by ballot out of this list, after proper challenges. AVithout such support, his authority and coercive power will be small. A jury of four is already allowed by " The Jury Law Amendment Act, 1862." I think that ■such a Court might be so worked as to create confidence and obedience. The Court would be in fact much like the panchayat, which Governor Gore Browne recommended: the simple and effective institution which has from time immemorial, through a long series of conquests and revolutions, •supplied the needs and secured the tranquility of the village communities of ludia. The limitations on the jurisdiction of these Courts should have reference to the nature of the 20

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proceedings, to the competency and fitness of the tribunal, rather than to the amount sued for. As to the amount a sufficient check would be supplied by the power reserved under the rules circulated by the Government in 1859, namely, the power of revising the sentence by reducing the amount of the penalty or damages. In this way the authority of the Queen is commended to the Natives by being interposed only in the form of protection and mercy. Between themselves, and in their own Courts, there ought to be no bar to proceedings in the nature of actions of trespass, ejectment, &c, in respect of Maori land; but the decisions of such Courts should not be accepted as conclusive evidence of the title, until confirmed by the Land Court. Every decision should be recorded in a book to be supplied for that purpose to the Native Magistrate, and be inspected by the Resident Magistrate on his circuits, to be made at short intervals through his district. Native Magistrates, when once fully appointed, should not be removed, except after full opportunity has been given for explanation of the acts complained of. In these Native Courts the Resident Magistrate should be at liberty to take his seat at all times, not so as to take the place of the magistrate or to weaken his authority in any way, but rather to help and direct him. Resident Magistrate. 12. As to the jurisdiction of the Resident Magistrate in settling civil questions between English and Maori, sufficient provision is made by the existing law. Their decisions in such cases should be subject to an appeal (under proper restrictions) to the Civil Commissioner. The Resident Magistrate would also exercise tho ordinary summary jurisdiction in criminal cases, and also the ministerial jurisdiction with a view to trial before the Civil Commissioner or the Supreme Court. Civil Commissioner. 13. Coming now to the question of the jurisdiction to be given to the Civil Commissioner, I find in the Memorandum submitted to Governor Grey by the Colonial Ministers in November, 1861, a recommendation that all criminal cases arising in Native Districts should be disposed of in the Commissioner's Court, excepting only eases of homicide. The Ministers go on to say: "The District Commissioner will be a person of personal character sufficiently high to create confidence in the decisions of the Courts which he superintends ; and ultimately the Governor in Council has the power of pardon. The proposal to establish regular circuits of the Supreme Court, Ministers submit to be premature; they think that for the present the Supreme Court should be resorted to in the case of homicide alone, in which case Ministers concur in the very great importance of the trial taking place in the district where the offence may have been committed —a proposition which will, no doubt, be fully appreciated by the Native race. The Supreme Court could in such cases be put in mption by Special Commissions. Ultimately, when more .complicated relations arise between the Natives and Europeans living together, regular circuits will no doubt be desirable." I would propose that resort should be had to the Supreme Court, in the way proposed by Ministers, not only in cases of homicide, but also in cases of any actual violence of a grievous kind to the person of a man or woman. AVith this exception, all cases civil and criminal, where the defendant or accused person is resident within the district, should come within the jurisdiction of the Commissioner. Also that jurisdiction should attach equally, whether the offence or cause of action arose on lands held under the Native tenure or under Crown Grant. The accused should, in all cases arising between the two races have, if desired, the benefit of a mixed jury, a device which was long employed in England for the settlement of questions between persons of different races, and is, to a considerable extent, recognized in " The Jury Amendment Ordinance of 1814,'' and in "The Jury Amendment Act, 1862." To guard against an occasional failure of justice, it might be provided that, if three-fourths of ihe jury pronounce the accused guilty, it shall be competent for the Judge or Commissioner (if he agre< witli the finding of the majority) to award such punishment as he shall think right, within the limits allowed by law. AVith this exception, offences should be dealt with by the Commissioner and a mixed jury, in all respects according to the ordinary course of procedure: the sentence being of course subject in this, as in all cases, to be remitted in whole or in part by the Governor. Police. 13. The number of serious crimes committed in Maori districts has hitherto been small. But it is necessary, in order to quiet men's minds and to keep up confidence and good feeling between the races, that jiroof should be given, when needed, of the existence and nearness of a power strong enough to repress wrong doers and protect the peaceful and well disposed. For this purpose an efficient police force is needed, which should receive its orders from the Civil Commissioner. A Native Police Force might be raised by calling on the friendly tribes throughout the country to supply volunteers. No combination need be feared in such a force. The position of every such guardian of the peace should be made valuable and honorable. Their duties should be clearly defined. Amongst ourselves in old times the duties of ministerial officers of the law were in some cases set out very minutely in the oaths of office. Some such forms might under our circumstances be found useful, and be made impressive by being formally and publicly administered before the Commissioner. Civil Cases. 14. In civil cases the Commissioner should exercise within his district all such powers as by law belong to a Judge of a District Court, mixed juries being employed here also in cases above a certain amount. English Procedure to be modified. 15. In order that the system here sketched out should be complete, that is to say, should carrywithin itself all requisite powers up to the full measure of the need, it will be necessary in cases between persons of the two races to allow a certain departure from the usual course of English procedure. 1 refer to the rigid separation between the civil and the criminal consequences of a

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wrongful act, which in England is even now so strict as to render necessary in most cases an entirely distinct set of operations to enforce each of those several consequences. This state of things appears to be traceable, not to any deliberate judgment or purpose of our forefathers, but rather to the historical circumstances under which distinct branches of our law grew and extended themselves, and especially to the old rule according to which certain forfeitures accrued to feudal superiors in consequence of such acts as were pronounced by the Courts to be felonious. The feudal lawyers, therefore, were led to mark very strongly the distinction between felonies and mere trespasses or wrongs. At this day the contrary principle is steadily infusing itself into our English system; and it is coming to be accepted as a maxim, that when two litigants are at issue in a Court of competent jurisdiction, the facts of the case should be then and there investigated once for all, and all the redress which the law will give be given at once. In conformity with this sound principle, the proceedings in the Commissioner's Court should be such as to give complete redress. If, for example, an unlawful taking of property be complained of, the Court should inquire into the case, and deal with it according to the result of the inquiry. If it be found upon the trial to be only a trespass, the complainant should be at liberty to adduce evidence of the damage caused by the trespass, and should recover accordingly. So if a man be wantonly assaulted, and receive injury, either in person or otherwise, damages should be awarded, and a fine imposed, at the same time. The Colonial Ordinance of 1845 leaves room for carrying out this principle in cases of summary proceedings for assault, but falls short of the mark by leaving to the discrot ion of the Magistrate that which should rather be prescribed by the law. Outstanding Claims. 16. As to tho civil jurisdiction of the Resident Magistrates, a very serious difficulty is presented by the relations generally subsisting in many of the remoter parts of the country between the European traders and the Natives. All reports agree in representing the amounts of outstanding debts or claims to be very great, and that a very sore feeling on both sides has grown out of them : each parly charging the other with dishonesty, and both parties being in many cases greatly to blame. I will cite one passage from the Report of Colonel Russell, Civil Commissioner of Hawke's Bay, in June, 1862 : —" I explained to the Natives the proposed institutions, but met with small encouragement. I believe this arose in some measure from the fear which had been imposed on them, that debts which are brought against them to the extent of four hundred pounds by one European, of five hundred pounds by another, and of seven hundred pounds by a third, would have to be paid up now that law and order were to he established. I believe that such claims extend all over the Province, and that ten thousand pounds would not cover them. My present interpreter, Mr. E. Hamlyn, estimates his claims alone at one thousand pounds." It is plain that it would be inequitable to use the authority of the proposed new Courts, and the compulsory action of the law, for the purpose of enforcing contracts entered into in a full belief on both sides that no speedy payment was to be expected, and that no legal process would be available. On the other hand, every facility should be afforded for a speedy and fair adjustment of all such outstanding claims. It should be competent for the Commissioner, with the consent of both parties, to settle such disputes as an arbitrator, with full discretion to allow on the one hand such price as at the time and under all the circumstances might be reasonably charged ; and on the other, to allow all fair claims to be set off on the part of the purchaser; and to make such arrangements for payment by instalments as might appear to him reasonable under the circumstances. Contracts respecting Lands, Vessels, Sfc. 17. The utmost care should be taken for the future to guard against evils of this kind, in respect of money dealings between English and Natives. Such matters are apt to be regarded as minute and insignificant, but in truth they are of great moment. A few special regulations adapted to these cases would be of great service. Tho lack of such regulations has produced much disaffection and much demoralization. In various places grudges have been strongly felt for years by men, who believe themselves to have been wronged. The fraud of one Pakeha has often been retaliated upon others who have had no share in the fraud. Thus all contracts for the occupation of land, all licenses to cut timber or to pasture cattle on land, should be in writing, both in English and Maori; and should have a memorandum written or indorsed thereon, signed by the Civil Commissioner or Resident Magistrate, certifying that he has caused the same to be read over both in English and Maori to all the parties in his presence, and that the same was perfectly understood by them. A promissory note in English only should not be valid against a Maori. It should be laid down as a general rule that no action should be allowed for any debt exceeding a certain limit, unless the conl ract were made in the way above mentioned. All contracts for sale or transfer of any ship or vessel, or otherwise concerning any ship or vessel, should be subject to the like regulations. This point is one of the utmost practical importance. Frauds committed in respect of the purchase of small coasting vessels have in some parts caused extreme irritation and soreness against the Pakeha. For it has happened repeatedly that a whole community, being keen to enter into trade with Auckland, and having set their hearts on some particular vessel, have combined their efforts to raise the price. They have worked for months in an English settlement for the purpose of providing the instalments of the purchase money ; and then in the end have found that the vessel has been transferred to another purchaser, or removed out of their reach, and that, by reason of the insolvency or disappearance of the person they have dealt with, all chance of obtaining compensation, or even of recovering back their instalments, has been lost. Cases of this kind have produced great dissatisfaction and a strong feeling of distrust towards our whole system. In all future transactions of this kind, where instalments or other money shall be paid in respect of the purchase of a vessel, which shall not be in possession of the parties making the payment, such instalments shall be paid over into the hands of the CivU Commissioner or of a Resident Magistrate, aud impounded until the completion of the contract.

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Rules in purely Native Cases. 18. In cases between Maori and Maori, there is still more room for departure from our English system. For here, in the first instance at least, our object is to get some law established and obeyed— the substance of law rather than any particular form of it. Here we should bear in mind that the old usages and ways of thinking of a people cannot be changed all at once, and that the laws of England, venerable and useful as they are, are not part of tho laws of nature. The fitness of a law depends largely on time and place and many circumstances. At different stages of our own history, our laws have varied greatly. The English Commissioners on Criminal Law say justly, (7 Report, p. 92,) " Penalties being a positive institution, vary exceedingly in different nations, and even in the same country at different times, according to a great variety of circumstances and opinions. According to the Mosaic, and also according to the Romau law, the crime of theft was punishable by compelling a pecuniary compensation to the party injured; by the ancient law of England, the crime of theft, where the thing stolen was above the value of 12d. was punished with death. At the present day the maximum of punishment is transportation for seven years." Even since the date of that report, another important change has taken place. There is uo reason then why the usage which has grown up in Maori Districts of punishing theft and other criminal acts with a fine, (over and above compensation, in cases where restitution is not possible,) should not for the present be retained. The power of imprisonment should be reserved in aid of that usage, and not used instead of it. It ought to be remembered that our English system has been throughout its growth singularly indulgent and tolerant towards special and local customs. The progress towards uniformity of law and procedure has been very slow, and in England itself at this day there is nothing like a complete uniformity. If we are to determine what is English by reference to the history and practice of England, it may safely be said that nothing is less English than an attempt to force one system upon all persons at once, without regard to their different circumstances and degrees of preparation for it. By the Acts passed in 1848 for regulating the local affairs of Native Districts, and for the administration of justice in Native Districts, the Legislature of the Colony has fully sanctioned the principle of modifying our own rules aud usages so as to suit the peculiar circumstances of the Native people. District Council. 19. This brings us to the consideration of the constitution and powers of the District Council itself; the only body in the district which will exercise functions of a legislative kind, that is to say, the function of making rules and regulations for the district and that of appropriating the yearly income of the district. In this part also wo should conform, as far as circumstances may allow, to English modes of proceeding. This Council then should not consist, as has been proposed, of magistrates and officers sitting there in virtue of their offices. Such a constitution, besides being an un-English one, would tend to keep up that existing confusion, of which we have spoken, between the two distinct functions of making and of administering law. Moreover, it will not probably happen that the favourite orator of a village, and the man best qualified to be a magistrate, will be one and the same person. The Council should then be elective. To make it elective the machinery is ready to our hands, and most simple. All persons on tho jury list of each village are to be deemed electors. A set of villages grouped 'ogether, according to local convenience, form one electoral district. It will probably not be found necessary to call this Council together more than once or at the most twice in the year. The occasion of its meeting should be made a sort of festival. A moderate sum might usefully be contributed by the Government in aid of the cost. By holding the sessions of this Council in the several Court Houses of the district in succession, the burthens and the benefits of tho system might be equalised throughout the district. Such a District Council may (as has been proposed) continue in office for a term of four years. As to the two kinds of business which will belong to this Council—the former, namely, the business of framing bye-laws or special regulations for the district, may well be reduced within narrow limits; for such regulations as will be absolutely necessary, may, for the most part, be laid down beforehand, and amendments will be needed only occasionally. But it is a great matter to provide for such bodies a regular supply of practical business simple in itself, yet of such a kind as to interest many persons. This kind of business will be supplied by fhe general superintendence of the lands appropriated for endowment, and the appropriation of the income to be derived from these lands, in conformity with the rules framed by the Council and assented to by the Governor. Also the fines and fees coming ia from the several Native Courts would be disposed of by the same authority for the benefit of tho district, subject to the like assent. So the contributions to bo made in labour or materials towards buildings and other works for the benefits of the district, in return for Government aid in money, should be made a matter for discussion and arrangement by the District Council. H business of such a kind be transacted in an orderly and becoming way, the District Council will be a valuable means of Native education and advancement. The experience of Bishop Williams in the sessions of his Diocesan Synod at Turanga, suffices to show that a satisfactory result may be expected, wherever the like pains are faken. It might be well to let the panel, from which the Members of the Land Court are to be taken, be subject to some sort of revision by the Council; which would cause the operations of that Court to be felt as more authoritative and binding. The proceedings should be opened by an address from the Civil Commissioner; but a Native should preside during the discussion, to be aided and advised (if necessary) by the Commissioner. It is of importance to find in our system positions of honor, such as the leading men of the race may be willing to accept. Book of Laws. 20. At this time we are requiring the Natives of this Island to submit themselves to the laws of England, and are assuring them that if they do so they will receive therefrom protection and manifold

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advantages. It is therefore reasonable, and indeed necessary, that an attempt should be made as early as possible to do something more than this ; not merely to propose general invitations and assurances, but to convey to their minds a clear notion of the main rules and requirements of our law. Now is the proper time for completing the work which was begun by Governor Browne, in ISSB. The publication put forth by the Colonial Government in that year, under the title of " The. Laws of England," was chiefly devoted to an exposition of the principles of the criminal law as administered in tho Supreme Court of the Colony. At present, an exposition is needed of other portions of our law, in particular of tho rules which concern the devolution and transfer of property, the making and enforcing of contracts, and the modes of obtaining redress and compensation for loss or damage caused by breach of contract or any wrongful act. There are at this time many Natives in this island who are well qualified and desirous to receive instruction on these points. Besides, as it is impossible to carry law throughout this island without Native agency, one of our first objects should be to raise a supply of men competent to act as magistrates among their countrymen, and able by virtue of superior knowledge to command their respect. It is desirable that persons, eligible as Native Magistrates, should pass through a regular course of instruction and examination, and not be appointed until they have been certified as competent. This suggestion cannot be applied to the elder men, who now hold these offices, and whose presence and influence on the side of order cannot, in many cases, safely be dispensed with, even for a short season. The best course would be to train promising young men to act as clerks under the magistrates in the first instance, and after due probation to become magistrates themselves. Representation. 21. AVithin all districts which have come within the operation of our system of property, it will follow that Natives will take a direct part in the political, as well as the legal, system of the Colony, by becoming electors. I understand that even now such is the case to some degree in the south of this Island. This is a result absolutely essential to the end we are seeking, namely, the establishment of a just and equal system for both races. It is one which need not excite any alarm, for the average capacity of a Maori is not below that of many of our present electors. The effect will be to provide the Maoris of tho district with a constitutional helper and protector, interested in obtaining their confidence, and able to convey to the Assembly an accurate account of their wants and grievances. Thus the system of representation will yield to the Natives that first and most obvious advantage, which was its chief recommendation in England itself in old time. It will open a path by which a knowledge of local needs or troubles may be carried directly to the Government, and the best modes of supplying or removing them be suggested and considered. The need of such an opening, under our circumstances, is very great; for such local matters, small in the outset, are apt, if they be overlooked and allowed to accumulate, to become causes of permanent disaffection. That such matters should be speedily and directly brought under discussion is especially to be desired in the case of the Natives ; in dealing with whom, a grievance promptly attended to and discussed is already^ half-healed. It has recently been proposed that the Maoris should be represented in the Assembly in a general way,, and without reference to the ordinary electoral divisions. On that plan, the members would be rather orators on behalf of the Maoris in general than well-informed expositors of practical grievances and local needs; and the fact of a few members of the Assembly being regarded as specially representing the Natives would naturally have an injurious effect on the rest of the members, leading them to take less interest in Native affairs, and to feel less responsible for the management of them. I think it far better to fall into the existing system. Representation, to answer its purposes completely, should be one and the same system for all. Superintendence of. the System. 22. AYe now reach the third main question. Having endeavoured to make our plan itself as simple and as effective as possible, and also to provide the means for keeping it in continued operation, where are we to find the thought and will necessary for the successful guidance and prosecution of the work ? In order to succeed in such an undertaking as this, the superintendence of a single authority is needed, to combine the various ojierations, so that they may support and not clash with one another. And this single authority will need a great knowledge of persons and things, so as to make due allowance for all local or peculiar circumstances, and yet steadily to hold fast to general principles, in dealing with a people naturally disposed to follow precedents, and very apt to remember what has been done in other cases. Above all, it is necessary that some one consistent and well-considered system be carried on steadily for an adequate length of time. In order to secure these requisites, as far as possible, I see only one mode of proceeding that can be recommended. I mean, that the plan of operation, being once settled and defined by the terms of a statute, and the amount of pecuniary aid being fixed, the working of the plan should be entrusted to a Commission or Board —to a body of fit men, to be permanently occupied with this business alone, and bound to report their operations yearly to the Assembly. I know that at first sight great objections will seem to lie against this proposal, but I am persuaded that, upon mature consideration, it will appear to be the only one that gives a reasonable prospect of success. To say that the administration of all Native affairs shall bo part of the business of the Colonial Secretary, or of a separate Native Minister, is to say that which is likely to be popular and acceptable; for it suggests the notion of a victory achieved over a bad system, of an advantage once gained, which it is a duty to maintain for the future. AVith that, however, I have no concern. I never defended the old system, and have no wish to see the like of it again. A system which involved an indefinite expenditure, without any account rendered to the Assembly, was properly condemned. Moreover, it did not tend towards the solution of the Native problem, for it settled no principles and registered few facts. But, because we have escaped from a bad system, does it follow that we have fallen into a good one ? It appears, to mc that the utmost that can be expected under the present order of things, is that occasionally a competent man will have the guidance of Native affairs for a short time. Yet very much more than this is required for the success of this work. To the proposal formerly made for a Native Council, there were objections grave and manifest. It appeared to be a 21

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plan for withdrawing from the Assembly the control over an important portion of the public business, ami over a large and even indefinite amount of public money. We may rather wonder that anything in the shape of a Native Council was accepted at all, than that the result was not of a very practical kind. The Assembly, in passing the Act of 1860, declared its belief that some special organization was needed for the successful management of Native affairs. Now circumstances are much altered. The Native problem has taken a more definite form. The political aspect of the question is giving place to the administrative and social one. AYe are now able to determine in a general way the operations which ought to be performed in Native districts, and the yearly expenses which it will be necessary to incur. But in order to tho successful accomplishment of the undertaking, there will be a necessity of determining from time to time as the work goes on, a vast number of minute and novel questions, to which the best answer will generally bo derived from the experience which has been gradually accumulated by the administrative body itself. Tho business will be not merely to administer a system, but to make it as the work goes on. Like cases have occurred again and again in England, where great changes have had to be carried out over large surfaces and under circumstances continually varying. How has Parliament dealt with such cases ? Not by Parliament itself, or the ordinary officers of Government, taking charge of the novel undertaking; but by committing the work to a special body of persons, prescribing 1 heir powers and tho extent of the resources to be at their disposal, and requiring a periodical account of their doings. Such wore the Poor Law Commission, the Tithe Commission, the Copyhold Enfranchisement Commission, and many others. The great- advantage of this mode of proceeding is obvious, and is one which would be in this case of'especial value: the question becomes severed from politics. All political parties may criticise the proceedings of the Board; no political party is committed to a necessity of defending or screening them. Moreover, whilst subject at regular intervals to a searching and thorough scrutiny, they are allowed to escape from that series of references and interferences at every step, which paralyse business. Therefore I think that the best course to be taken, with a view to the solution of the Native problem, is the constitution of some such Commission or Board. If it should be found practicable to connect with it Natives of standing and influence with their own people, as proposed by Governor Browne, a great advantage would be secured thereby. The Board, or central authority under whatsoever name, should do its work through the DistrictCommissioner as much as possible, always at any rate after communication with him, never acting behind bis back. 23. There is in the whole question no element more important than the one which remains to be noticed, the character and qualifications of the persons to bo employed as Commissioners or officers in the Native Districts. The experience of Native affairs has shown that, among the Natives, personal qualifies are especially influential for good or evil. If such affairs are committed to men whose chief or only recommendation is a knowledge of tho Maori language, they will have no fair chance of success. This is not a work to be done by hasty or over-busy or over-bearing men, by men unduly tenacious of their own dignity or unable to subordinate themselves to the object which it is their business to effect. Least of all is it to be committed to men of openly immoral lives : for such men bring on us dishonour as well as failure. 2 1. The foregoing remarks are confined to the immediate object of inquiry, namely, the working of the Native Lands Act, and the objects which we ought to aim at in working it. But in substance much of what is here said applies also to those lands which have come into our hands by surrender or by military occupation, and parts of which we have undertaken to restore on certain terms. In those cases also it will not be safe to content ourselves with simply giving a Crown Grant to each individual. If we make no provision to prepare the Natives for so sudden a change, and for the consequences of it (as above pointed out), it is to be expected that the now system, naturally unacceptable when imposed by superior power, will become more than ordinarily unpopular. Either then the issuing of grants in such cases should be postponed until proper legislative provision has been made; or if it be in any case thought necessary to issue the grants at once, yet every such grant should be made expressly subject to the provisions of an Act to be passed by the General Assembly, for defining the rules of devolution and transfer of Native land between tho Maoris themselves ; and it should be enacted, as in the Native Lands Act, that all dealings or contracts relating to such lands, entered into before the proclamation of such Act coming into operation, should be null and void. In the cases just referred to we have in our hands the means of rendering our system permanent aud self-supporting. AYe can appropriate so much land as shall bo requisite for endowment, both of the judicial system and of schools for teaching the English language. For the reasons above indicated, it is desirable that Native Reserves, whether under the Native Lands Act, or under any former law or contract, should be placed under one system of management, and under such local superintendence as might be expected to be most vigilant. It would be convenient that all the Native Reserves in the district should be brought under the control of tho Native Council of the district and the Civil Commissioner, subject to existing contracts and engagements. All questions raised under the Native Succession Act might bo decided, with the least cost and inconvenience, in the Civil Commissioner's Court. The whole Native business of the district, both as to management of property and as to administration of justice, would then be brought into one system. 25. Thus I have in some sort surveyed the whole field of the Native problem, with an earnest desire to contribute something towards its solution and towards the peace and prosperity of tho Colony. The recommendations which to me appear to be at this time of paramount importance are the following:— I. That the Native Land Courts be so constituted, especially in respect of the number and standing of the Native members, as to render the certificate entirely trustworthy. For the function of every such Court is to ascertain certain matters of fact known within certain limited districts only, and to be ascertained through the Natives of the district themselves. The efficiency of the Court,

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therefore, must depend mainly on tho qualifications of the Native members of it; the chief business of tho English president being to secure the notoriety, fairness, and regularity of the proceedings. 2. That in order to prevent the land being forestalled by a few to the detriment of the many, and to render the system attractive by assuring the Natives of the fairness of tho price, and to save both races from the mischiefs to be apprehended from the solicitations of land buyers, all sales of Native laud be by public auction, and be conducted by the Government on behalf of the Native owners. 3. That the working of the Native Lands Act, after making tho necessary amendments therein, and the business of introducing the law and language of England into Native districts, be committed to a separate and permanent body. That civil institutions be not forced on Native districts, but rather be introduced in such districts only as are disposed to receive them; and even there be planted in the simplest form or germ, and left to grow with the growth in the Native mind of a sense of the benefits they confer. 5. That care be taken to provide in every district endowments in land for the maintenance of the administration of justice, and of instruction in the English language, in that district. Auckland, 30th June, 1565. AY. Martin.

No. 32. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edward Cardwell, M.P. (No. 23.) Government House, Wellington, Sir,— 13th Eebruary, 1866. In my Despatch No. 153, of the sth December last, I reported that the Natives had arrested the murderers of the late Mr. Eulloon. 2. You will probably be anxious to know how the persons they arrested were disposed of. 3. I have therefore the honor to enclose for your information the copy of a Memorandum I have received from my Eesponsible Advisers, containing their reasons for advising that the persons accused of Mr. Eulloon's murder should be tried by our ordinary Courts in the usual manner, a recommendation in the wisdom and enlightened policy of which I fully and heartily concurred. I have, &c, The Eight Hon. Edward Cardwell, M.P. ♦ G. GEEY.

li Mr. Stafford. . Dec. 30,1865.

Enclosure in No. 32. Memorandum by Mr. Stafford. His Excellency's Ministers have carefully considered the case of the Maori prisoners accused of the murder of Mr. Fulloon and three other persons, on the 22nd of last July. His Excellency, with the advice of his then Ministry, desirous of inflicting an immediate and signal punishment on the Natives who, under the influence of the Hau Hau fanaticism, had been concerned in barbarous murders on the East Coast, had, on the 4th September last, authorized any such Natives who might be taken to be tried by Court Martial. At that time the district occupied by those Natives was in a state of armed rebellion to Her Majesty's authority; no action could be taken by the Civil Courts, aud it was requisite to undertake military operations for the apprehension of those who had committed many revolting crimes, entirely unprovoked, under circumstances of great barbarity. It was manifest that it was only by means of such operations, to which trial by Courts Martial is not an unusual incident, that outrages which shocked humanity could be suppressed, Her Majesty's authority asserted, and peace secured. The successes of the Colonial Forces, aided by the friendly Natives, in conducting these operations, have now resulted in restoring peace and the authority of the law over a considerable portion of the hitherto disturbed districts on the East Coast. The prisoners in question have been for some time, and are now in safe custody. The Courts of Law are accessible for their trial, while any action now taken in fulfilment of a Court Martial could not be considered as immediate with respect to crimes committed many months since. His Excellency's present Ministers are of opinion that only circumstances of great urgency, requiring prompt and summary punishment, warrant a recourse to any but the ordinary judicial tribunals. They do not consider existing circumstances with respect to the prisoners to be of that urgent or exceptional character, and they believe it to be both right and wise, as tending to encourage in the Native mind a respect for our administration of justice, that the ordinary course of law be observed with respect to them. They therefore recommend that the prisoners be examined in the usual manner before a magistrate, with a view to those against whom evidence of murder or other serious crime is adduced, being committed for trial before the Supreme Court of New Zealand. It is also advised that a similar course bo followed with respect to the natives concerned in the murder of Mr. A Tolkner. Wellington, 30th December, 1865. E. W. Stafford. [Minute by the Governor on the above._ I entirely concur. G. Grey.

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No. 33. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edward Cardwell, M.P. (No. 24.) Government House, Wellington, Sir,— 13th February, 1866. In my Despatch No. 10, of the 13th January last, I enclosed a Despatch from General Chute giving the details of two engagements in which the rebel Natives had been defeated by Her Majesty's Eorces under his command, and I reported that, from the active measures taken by General Chute, the West Coast of this Island would shortly be placed in a state of entire security. 2. I have now the honor to transmit for your information copies of two further Despatches from General Chute, containing the details of Ms operations till their close upon the 9th instant. 3. The result of these operations has been the absolute defeat of the rebels at every point, and the restoration of security to the West Coast of this Island, the attainment of which object has been so long desired. 4. During these operations General Chute displayed every quality of a great General, whether in ability in conceiving plans, in energy in carrying them out, or in that power of command which inspired those under him with an energy and determination equal to his own. The result has been a rapidity and an amount of success which is without precedent in New Zealand. The well-disposed Natives are greatly strengthened in then confidence in our power, whilst the disaffected are filled with consternation, and their strength and influence completely broken. 5. The Troops will continue to be sent home as rapidly as transport can be provided and fitted up for them. I have, &c, The Eight Hon. Edward Cardwell, M.P. G. GEEY.

Jan. 15,1866.

Feb. 12,1866.

Enclosure 1 in No. 33. Major-General Chute to Governor Sir G. Grey, K.C.B. Sir, — Head Quarter Camp, near Ketemarai, 15th January, 1866. In continuation of my last report, I have tho honor to acquaint your Excellency that on the Bth instant the Native Contingent were employed in destroying the cultivations in the neighbourhood of Putahi. The unoccupied hut extensive settlement of Oika was also burnt; and on that day two hundred men of the 2nd Battalion 18th and 50th Regiments, under Major Rocke, who had on the 6th joined the field force from the Patea, returned to that post. On the 9th instant the field force marched at 4 a.m., aud crossing the Wenuakura and Patea Rivers, proceeded to Kakaramea and encamped. One non-commissioned officer and fifteen gunners, with two six-pounder Armstrong guns, joined the force from the Patea. On the 10th, armed parties were employed in reconnoitering the bush near Kakaramea. They destroyed two deserted villages, but found that no rebels were located in the neighbourhood, though the traces of them were seen, probably fugitives from Putahi. Tho force marched on the 11th through Manawapou, and encamped at Tangahoc. During the afternoon, Captain Leach, Deputy Assistant-Adjutant-General, with fifty mounted men of the Native Contingent under Ensign McDonnell, reconnoitered the country in the direction of Ketemarai, an important settlement within the bush, in the vicinity of which I was informed that there were two or three strongly fortified positions and most extensive cultivations. It is moreover the point at which the track branches to the north behind Mount Egmout. On the morning of the 12th I marched the field force and encamped on the plain, about a mile and a half from the supposed positioii of Ketemarai. The force was augmented on this day by detachments* under Liout.-Colonels Butler and Hassard, from AVaingongoro and Manawapou. I should here mention that, in pursuance of my general instructions to officers commanding posts north of the Patea, Lieut.-Colonel Butler had, on the 6th instant, driven the rebels from the position of Ketemitea; but, having only a small force available from his post, was unable to destroy it. Lieut.Colonel Hassard had also patrolled from Manawapou, and destroyed some villages, but did not see any rebels. Not having been able to gain any immediate information of the exact locality or strength of the rebel positions in the neighbourhood, I sent a party of the Native Contingent to reconnoiter; and having thus ascertained that a considerable force of rebel Natives had collected at Otapawa, a fortified pa five miles to the north-east of this camp, I determined to attack it without delay, and accordingly at 2.30 on the morning of the 13th, the forcef moved silently towards it. Our route lay along a good * From Waingongoro. —57th Regiment: Officers, 5; non-commissioned officers, <>; rank aud file, 120. From Manawapou. —57th Regiment: Officers, -1; non-oonxmitsioned officer*, •>; rank and file, 120. + Royal Artillery —3 six-pounder Armstrong guns, with proportions of non-commissioned officer, and gunners; under Lieutenant Carre. 2nd Battalion 14th Regiment—2oo rank and file; under Lieutenant-Colonel Trevor. 57th Regiment 130 rank and file ; under Lieutenant-Colonel Butler. Forest Hangers 1 field officer, and ■'!(! of all ranks. Native Contingent— 200 ; under Ensign McDonnell.

f A. —■__ _

bullock track for two and a half miles, after wliich it passed through high fern and scrub along the edge of a broad and deep valley, into which we descended by a precipitous declivity, and after crossing two streams, again gained the high ground by an ascent almost as steep, and enclosed by thick bush. Prom the nature of the ground, I had no opportunity of making a satisfactory rcconnoissance ; the tops of the whares, however, being just visible from the near side of tho valley, I left the six-pounder guns there, and advanced under cover of their fire, which was ably directed by Lieut. Carre, E.A. In a few minutes we emerged from the scrub and bush on tho open, opposite the position, which consisted of an entrenched work, strongly palisaded, with a front of about one hundred yards. The approach was over level ground, flanked on the right by a tongue of bush at seventy yards ; on the left front there were fenced cultivations. It would have been a work of great labour aud loss of time to get the guns to this point. I therefore took advantage of an undulation in the ground, at the distance of one hundred aud fifty yards from the work, and formed the force in the following order, viz.: 57th Regiment on the left, in skirmishing order, with a strong company and the Forest Eangers in support: the 2nd Battalion 14th Eegiment extended on the right, with one hundred men in support, the Native Contingent in reserve. The signal for the assault was then given, and the troops dashed at the work with irresistible impetuosity, the rebels kept perfectly quiet until they were within forty yards, and then opened a most severe and unusually well directed fire from the whole front of the entrenchment and the bush on its right. Under this heavy cross fire, a portion of the 57th Eegiment, under Lieut.-Colonel Hassard, wheeled to the left, drove the rebels from the bush, aud advanced against the right angle of the pa. At the same moment the 2nd Battalion, 11th Eegiment, under Lieut.-Colonel Trevor, and the remainder of the 57th, under Bt. Lieut.-Colonel Butler, both, most gallantly led, reached the left angle of the work through the cultivations. The Maoris fought desperately for a time, but in vain ; the palisading was cut down, the troops entered the work and carried all before them. The enemy broke and fled down the precipitous densely wooded gully immediately at the rear of the pa, where it was impossible for the troops to pursue them ; some of them, however, there fell under the fire of a detachment of the Native Contingent, whom I had sent round into this gully. The whole of the defences, the village, and cultivations, were destroyed. Tho capture of-Otapawa is, I believe, of the utmost importance. It was a position, lam informed of historical repute for its natural strength, and had the name of having never fallen in any of the Native wars. It was in fact inaccessible for any force except by the way we advanced to it, and the character of the approaches and the nature of the immediate locality of the pa, as well as the strength of its defences certainly were such as in some measure to justify the ojiinion of the Natives that they held an impregnable position. In the capture of such a position it is not to be expected that our loss could be insignificant. In comparison, however, with the nature of the service the number of our casualties is not great. Seven men were killed and fourteen wounded. Two officers —Lieut.-Colonel Hassard, 57th Eegiment, and Lieut. Swanson, 2nd Battalion 11th Eegiment—were wounded ; and it is with deep regret I have to add that the former officer died of his wounds this morning. In Lieut.Colonel Hassard the service has lost one of its bravest officers: he led his men with the greatest gallantry, and fell inside the pa nobly performing his duty. Tho loss of the enemy I estimate at fifty killed and wounded ; the body of Aperahama, tho Chief of the place, was found in the ditch. It is my intention to bring under the special notice of the Secretary of State for AVar, and of his Eoyal Highness the Field Marshal Commanding-in-Chief, the brilliant services of the whole of Her Majesty's Troops engaged on this occasion ; and I take this opportunity of expressing my thanks to Major Yon Tempsky, commanding Forest Eangers. and to Captain Pilmer and the men of that corps, for their services in co-operation. To Ensign McDonnell (commanding tho Contingent in the absence of Major McDonnell, who is still suffering from his wound,) as well as to the Native Contingent, I am much indebted for their assistance. Ensign McDonnell has rendered most valuable aid in reconnoitering and obtaining information, and his intrepid conduct deserves the highest commendation. On the evening of the 14th I directed the Native Contingent to ascertain the position of Ketemarai, and instructed them to remain near it during the night, and to send me information which would enable'me to move against it early on the following morning ; for which purpose the force as below* inarched at 415 a.m. this day, and proceeding over the plain for two miles in a northerly direction came in front of a Hue of stockading and earthwork, flanked on either side by bush, and exteuding across the main track, leading into the clearing in which Ketemarai is situated. The position was carried without opposition, though it had evidently been the intention of the rebels to defend it, for we found provisions and fires still alight inside the work. I can only account for their not availing themselves of so formidable a position for opposing our advance, by attributing it to the dispiriting effect of their severe loss at Otapawa. The force then advanced on Ketemarai itself, which is about a mile within this Entrenchment, and consisted of four palisaded pas in eschellon, enclosing a large number of whares ; these were all burnt, and as far as practicable, the cultivations destroyed. The regular Troops thou inarched back to camp, and the Forest Eangers and Native Contingent remained to search the bush in the vicinity. This they did for several hours, during which they came across some small parties of the enemy (twenty-one of whom are reported to have been killed), and destroyed the following villages, viz., Te AVlieiiuka, Te Moro, Kauihi, Mawhitihito, Te Paid, Otukere, Aoteroa, and another large pa, the name of which is not yet certain, but supposed to bo Ahipaipa. The same afternoon I sent out 300 men of the 2nd Battalion 14th, 50th and 57th Eegiments, with the three six-pounder Armstrong guns, the whole under Lieutenant-Colonel Butler, 57th Eegiment, to destroy tho rebel village of Ketemitea, which, as already stated, he had previously visited. It was now completely destroyed by him as well as another strongly fortified pa in the neighbourhood, Puketi, * Three fi-pounder guns, with proportion »f non-commissioned officers and gunners) trader Lieutenant Carre. 2nd Battalion 14-tli Regiment —200 rank and file ; under Lieutenant-Colonel Trevor. 50th Regiment- -110 rank and fde ; under Captain Doran. 57th Regiment -200 rank and file ; under Brevet Lieutenant-Colonel Butler. Forest Rangers—tO of all ranks ; under Major Yon Tempsky. Native Contingent —150 men ; under Ensign McDonnell. 22

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which was found to be abandoned. All the principal villages and positions of the enemy up to and within reach of this camp having been destroyed, and the rebels scattered with heavy loss, I propose, in pursuance of your Excellency's instructions, to continue my march immediately towards Mataitawa and New Plymouth, by the bush track behind Mount Eginont. I have, &c, T. Chute, Major-General. His Excellency Sir George Grey, K. C. 8., &C, &C., &C. Nominal Return of Officers and Men killed and wounded in an Engagement with the Eebel Maoris, on the 18th of January, 18(36, at Olapawa, with the Field Force under the command of MajorGeneral Chute :— 2nd Battalion 14th Eegiment—Private James Wheelan, aged 29, musket bullet, abdomen, killed57th Eegiment—Sergeant Frederick Day, aged 25, musket bullet, abdomen, killed ; Private Eobert Doake, aged 24,muskqt bullet, head, killed ; Private Hugh McGregor, aged 30, musket bullet, chest, killed: Private John Moran, aged 26, musket bullet, chest (heart), killed; Private John Manning, aged 27, musket bullet, abdomen, killed. Irregulars—Spain (Maori), musket bullet, chest, killed. tttalion 14th Eegiment —Lieutenant Swanson, aged 26, musket bullet wound, right leg, severely; tit Thomas Fox, aged 26, musket bullet wound in both thighs, dangerously (since dead) ; Private mi Bonham, aged 23, musket bullet wound, right thumb, slightly. 57th Eegiment—LieutenantColonel Hassard, aged 30, musket bullet wound through chest and lung, dangerously; Sergeant John Sullivan, aged 12, musket bullet wound, abdomen and thigh, mortally (since dead) ; Corporal Thomas Bowyer, aged 37, musket bullet wound, left fore aim, severely ; Drummer George Donaghue, aged 26, musket bullet wound, right fore arm, severely ; Private George King, aged 29, musket bullet wound, mortally (since dead); Private John Hardley, aged 28, musket bullet wound, left shoulder, ly; Private William Kennarny, aged 26, musket bullet wound, contusion of abdomen, slightly; ftdvate Francis Eaycroft, aged 29, musket bullet wound, both thighs, severely; Private Martin Connolly, aged 30, musket bullet wound, back, severely ; Private Michael Corcoran, aged 26, musket bullet left fore arm, severely; Private Thomas Gannon, aged 27, musket bullet wound, scalp, slightly. Alexander Gibb, M.D., Deputy Inspector-General of Hospitals.

Enclosure 2 in No. 33. Major-General Chute to Governor Sir George Geet, K.C.B. Sir, — Head Quarters, Wellington, 12th February, IS6G. I had the honor in my last Eeport (15th ultimo) to intimate to your Excellency my intention of marching on Mataitawa by tho bush track at the back of Mount 'Egpiont. For many weeks I had been endeavoring to obtain information regarding this track, but not having been used by any but rebels for some years past, those who professed to know anything of it were so vague in their descriptions thai had they not all agreed on one point, viz., that the journey was one usually performed by Natives easily in two days, but that it would take troops three days, I should have hesitated in the undertaking, on which, I must say, I embarked with much anxiety, and then only from a desire to act ■iily to your Exccllcncy r's wishes, and in consideration of the beneficial effect such a movement was likely to produce on the minds of rebels in arms against us. I moved early on the 17th ultimo, with a force as per margin,* entering the forest from the clearing of Ketemarai. For a short distance our advance was unchecked, as we were traversing a good dray road leading to a village and cultivations; these were destroyed, and a few rebels were seen from the whares. From that point our progress was slow and laborious in the extreme, and the difficuli ies against which wo had to contend will be better understood by your Excellency when I inform you that to accomplish a distance of about fifty-four miles the force was eight days actually on the move, and never less than ten hours in any one day. I thus found that I had been quite misinformed as to the length and nature of the track, which had even been represented to mo as practicable for pack horses, except at two or three places where slight improvement would be required. So fir from this being the ease, there were no less than twenty-one rivers and ninety gullies, the precipitous banks of many of which presented formidable obstructions to our advance, and required great labor to make them passable ; and except for about two miles after entering the forest, working parties in advance were constantly employed in cutting down trees, supplejacks, &c, to admit of the passage of the pack animals. In addition to these obstructions, the weather, which had been fine for the first three days, changed to continuous rain, which increased our difficulties in crossing the gullies, and necessitated the construction of corduroy roads over swamps, which might otherwise have been practicable. It being necessary to limit, as far as possible, the quantity of supplies, &c, to be carried by pack horse;!. I had directed that three days' provisions only should be taken, in addition to the day's ration carried by the men on the 17th. When, however, at the close of the day's march on the 10th * Distribution: Royal Artillery —subaltern, 1; sergeant, 1; rank and file, 36. 2nd Battalion 14th Regiment —field officer, 1; captains, 2 ; subalterns, 3 ; sergeants, 10; drummers, 4 ; rank and file, 236. Forest Rangers—field officer, 1; captain, 1; sergeants, 2 ; rank and file, 57. Native Contingent—subaltern, 1 ; sergeants, 2 ; rank and file, 67. Total—field officers, 2 ; captains, 3 ; subalterns, 5 ; sergeants, 15; drummers, 4 ; rank and file, 306.

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there appeared to be some uncertainty as to our distance from Mataitawa, I directed the day's provisions then remaining to be divided, and half rations only were issued to the troops on the 20th and 21st. For two days horse flesh was issued as a ration. Our guide, the AVaitotara Chief Pehimana, who assured me that he was well acquainted with the route, at the end of the third day's march, on coming to a river ho professed to know, stated that wewere only six miles from Mataitawa ; but after a tedious march on the following day, the 20th, finding that he had been mistaken, I determined to send forward a party of the Native Contingent, accompanied by Captain Leach, Deputy Assistant Adjutant-General, and Ensign McDonnell, N. 1., in order to ascertain our position, and, if possible, to procure supplies. I continued the inarch for about six miles on the 21st, and not having heard from Captain Leach, halted the following day to await his return, as well as to rest the pack horses, now much wearied. Late in the evening of the 22nd, Captain Leach returned, having made arrangements with Colonel AVarre, C.8., commanding at Taranaki, for the supply of the force during the remainder of the march to Mataitawa, then distant twenty miles, and where we arrived on tho 25th. I need not dwell further on the arduous nature of the duties performed by the Field Force on this march, in the face of unusual difficulties and privations, and during much inclement weather ; it will, however, be gratifying to your Excellency to hear that officers and men appeared to vie with each other in the performance of their duties with unyielding energy and cheerfulness, and, I am happy to add, there was not a single case of sickness. On the first day's march, the Native Contingent, who were in advance, came suddenly on a party of seven rebels, three of whom were shot. These men were Ngatiruanuis, who it appears had gone to the north of the AVaitara for assistance in men and arms, and having failed were returning to Ketemarai. AVith the view of intercepting any fugitive rebels that might be retiring before mj force, Colonel Warre, in pursuance of instructions I had given him, despatched, on the 20th January, LieutenantColonel Morant, 68th Light Infantry, with 150 men, to move along a track leading south from Te Arei, and eventually joining that on which I was marching. Colonel Morant's force returned to Mataitawa on the 23rd, without encountering any rebels. On the 25th, after emerging from the forest, the force moved on from Mataitawa and encamped at the Waiwakaiho Eiver, four miles north of New Plymouth. Colonel AVarre having reported that the rebels were still seen in the neighbourhood of the AVhite Cliffs, I embarked, on the 26th, with 100 men of the 43rd Light Infantry, and a six-pounder Armstrong gun, on board tho s.s. "Ahuriri" then lying in Taranaki roads, and proceeded up the coast to the mouth of the Mokau Eiver, and from thence to the Awakino Eiver. There were a few whares visible at Ingarangi and Maniaroa, but they did not appear to be inhabited, nor do I think there can be any large settlement in that neighbourhood. It was not therefore necessary to land the force, which, moreover, there would have been considerable risk in doing on account of the weather. On the 27th the field force marched to Oakaru, on the 28th to Stoney r Eiver, and on the 29th to Warea, near which the rebels were said to have collected in force at a pa called AVaikoko, situated in the bush directly inland from Tipoka, a temporary post on tho seaboard seven miles south of Warea, occupied a few days before by Captain Corbett's company of Military Settlers. On the 30th I moved the field force to Tipoka, and in order, if possible, to cut off the retreat of the rebels, I sent Captain Corbett's company by a track leading to the right rear of AVaikoko; and instructed Captain Livesay, 43rd Light Infantry, commanding at Opunoki, to march, on the night of the 31st, with 100 men, by an -inland track leading from the south to the rebel position. In accordance with this arrangement, I left Tipoka at three o'clock a.m. on the Ist instant, with the force as per margin,* and, proceeding by a path leading through scrub and dense bush for six miles, reached a large clearing within which AVaikoko is situated, at a distance of about 500 yards from the point where the troops emerged. The force was at once formed in the following order, viz. : the 2nd Battalion 14th Eegiment on the right, the 43rd Light Infantry on the left, and the Forest Eangers in the centre, all in skirmishing order with supports ; the Native Contingent forming a reserve. I then gave the order to advance, when a heavy fire was opened by tho enemy-, upon which the troops gallantly charged and occupied the place ; the rebels retreating and re-opening fire from the bush, from which they were as quickly driven. Captains Livesay and Corbett, with their respective detachments, arrived on the ground immediately after. Our loss was not severe on this occasion (casualty return enclosed) ; that of the rebels could not be ascertained, four bodies only were seen. The whares and cultivations, which were unusually extensive, having been destroyed, the troops returned to their respective camps. On the second the field force marched to Opunaki, where I found a number of Natives recently in arms against us, who had been permitted by the civil authorities to reside in a village near the redoubt without taking the oath of allegiance. I immediately directed them to be made prisoners. Amongst the number was Te Ua, the so-called prophet, and founder of the Hau Hau fanaticism: he proceeds to Wellington for your Excellency's disposal. The remainder were set at liberty on taking the oath of allegiance, and giving up their arms. Prior to leaving Opunaki, I instructed Captain the Honorable A. E. Harris, 43rd Eegiment, to capture and destroy a pa near AVarea, to which it was reported the rebels from AVaikoko had retired. In this service he was to be aided by Captain Livesay, with a detachment of the 43rd Light Infantry, from Opunaki, and Captain Corbett, with the Military Settlers, from Tipoka. I am not in possession * Distribution: Royal Artillery —subaltern, 1; sergeant, 1; rank and file, 30. 2nd Battalion 14th Regiment—field officer, 1; captains, 2; subalterns, 2 ; sergeants, 6; drummers, 3 ; rank and file, 180. 43rd Regiment—captains, 2; subalterns, 2; sergeants, 5 ; drummer, 1; rank and file, 90. Forest Rangers —field officer, 1 ; captain, 1; sergeants, 3 ; rank and file, 31. Native Contingent—subaltern, 1; rank and file, 60. Taranaki Troopers—captain, 1; rank and file, 16. Total —field officers, 2; captains, 6; subalterns, 6; sergeants, 15 ; drummers, 4; rank and file, 407.

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of Captain Harris' official report, but I have learnt that the duty with which I entrusted him has been effectually performed, the enemy having been driven from the place with loss, and the village destroyed. On the 3rd the field force marched to the Peo Eiver, and on the following day to AVaingongoro. I enclose the copy of a report received (4th February, 1866), from Lieutenant-Colonel Butler, 57th Eegiment, who had, under my instructions, availed himself of every opportunity afforded of harassing the dispersed rebels in the vicinity of Otapawa and Ketemarai. On the sth the force marched to Manawapou, seven miles inland, of which post it had been reported to me that some of the rebels had collected at a pa called Mere Mere. I therefore sent Lieutenant-Colonel Butler, with a force as per margin,* to destroy it, and this he accomplished on the afternoon of the 6th, without meeting any material opposition from the enemy, who fired a few shots and fled. A considerable extent of cultivation was destroyed. On the same day the force under my command marched to the Patea, on tho 7th to AVaitotara, on the Bth to Alexander's Farm, arriving in AVanganui at seven a.m. on the 9th instant. I enclose for your Excellency's information the copy of a correspondence between Te Ua and some rebel Natives. I believe that throughout the country traversed by the field force during the last six weeks there does not now remain one fortified position or ordinary village in the occupation of the rebels, who have suffered most severely in loss of life, habitations, cultivations, horses, cattle, and other property. It is hardly possible for me to convey to your Excellency how much I feel indebted to Dr. Featherston, Superintendent of this Province, for his able advice on all subjects connected with fhe Maoris. He accompanied me throughout the campaign, sharing all our dangers and privations, and was present at each engagement and assault. I am particularly obliged to him for the zeal with which he has at all times labored to obtain information of the movements and positions of the rebels, which it would have been almost impossible for me to acquire without his assistance. The Native Contingent has been a valuable auxiliary force. My thanks are due to Major McDonnell, and his brother, Ensign McDonnell, who are active and zealous officers, and most deserving of your Excellency's favorable consideration. I beg also to bring under notice the Chief's Hori Kingi, Kemp, and Haimona, whose conduct at all times was such as to merit my warmest approbation. I have likewise to express my thanks to Major A'on Tempsky, and the force under his command, for their services, which I have on former occasions brought to your Excellency's favorable notice. It will be my duty to bring prominently to the notice of the Eight Honorable the Secretary of State for AVar, and His Eoyal Highness the Field Marshall Commanding in Chief, the noble and gallant conduct of the whole of the Troops engaged in these operations. I have, &c, T. CITUTE, His Excellency Sir George Grey, K.C.B. Major-General. Eeturn of Killed and Wounded in the Field Force under the command of Major-General Chute during the operations commencing 30th December, 1865, and terminating 9th February, 1866:— 2nd Battalion 11th Eegiment —Officers, 2 wounded; men, 2 killed, 7 wounded. 50th Eegiment—Men, 1 killed, 2 wounded. 57th Eegiment—Officer, 1 wounded ; men, 5 killed, 10 wounded. Forest Eangers —Men, 2 wounded. Military Settlers —Men, 2 wounded. Native Contingent—Officer, 1 wounded; men, 1 killed, 3 wounded. Total: Officers, 4 wounded; men, 9 killed, 26 wounded. T. CItUTE, One officer and four men since died of wounds. Major-General. Eeturn showing the Pas and A rillages taken and destroyed by the Field Force under the command of Major-General Chute, during the operations commencing 30th December, 1865, and terminating' 9th February, 1866: — Fortified Pas —Okatuku, Putahi, Otapawa, Kitionitia, Puketi Katamarai, AVaikoko, Mere Mere. A Tillagcs —Motorou ; Oika; small village near Otapu, name not known; Tiporohenui; TeAVhenuka; Te Moro ; Kanihi; Mawhitihito; Te Paki; Otukere ; Aoteroa or AVinioiri Ahipaipa; one village inside the bush, name not known, two miles from Ketemarai; Umeroa; Manihi; AVatina; Oeo; Oukuti; Tiwiti Maona; two villages near AVaikoko, names not known, destroyed by Captain Harris, 43rd Light Infantry, about the 6th instant—Officer's report not yet received. T. CmTTE, Major-GeneraL Sub-Enclosure 1 to Enclosure 2 in No. 33. H. Butleb to the Deputy Quartermaster-General, &c. Sic, — Camp Waingongoro, 4th February, 1866. I have the honor to enclose to you herewith for the information of the Major-General Commanding, a diary of my proceedings with the force left by the Major-General under my command on the 17th Januarys 1866. I trust that the measures which I have adopted to carry out the orders given to me to harass the enemy and destroy all cultivations, &c, may meet with approval. I maybe permitted to add that from Captain Doran and the detachment 50th Eegiment I received the most energetic co-operation. My best thanks are due to these officers and men, as well as to those of the 57th Eegiment, who have been engaged with mo ; also, to Sir Eobert Douglas, 57th Eegiment, * Distribution : Royal Artillery, sergeant, 1; rank and file, 6; 1 six-pounder Armstrong gun. 57th Regiment—captain, 1; subalterns, 2 ; sergeants, 4 ; drummer, 1; rauk and file, 150. Native Contingent—subaltern, 1 ; rank and file, 30. Total—captain, 1; subalterns, 3 ; sergeants, 5; drummer, 1; rank and file, 186.

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and Major McDonnell, of Native Contingent, who, despite of his wound, insisted in rendering active aid, and did good service. I have. &c., H. Butler, The Deputy Q.uartermaster-Gencral, etc., Major and Lieut.-Colonel 57th Eegiment, Head Quarters. Commanding Garrison. Sub-Enclosure 2 to Enclosure 2 in No. 33. Diary of Operations with Flying Column, under the command of Lieut.-Colonel Butler, 57th Regiment, in the Ngatiruanui Country, from 17th January, 1866, to 3rd of February, 1866. 18th January. —On the morning of the 18th January, I moved out of camp with one field gun, 200 men of the 50th and 57th Eegiments, and-about 120 friendly Natives ; proceeded in the direction of Oukuti, which I found destroyed as I had left it two days before ; also to the pa Tiwitiri Moana, where three bodies were discovered, one being that of the Chief Hohepa, a man of considerable importance. This pa was quite destroyed ; the enemy escaped as usual by the rear, and pursuit was not possible. There were in all about fifty Natives to defend the pa; brought in from it about fifteen cartloads of potatoes, and destroyed a vast quantity of cultivations ; returned to this post that evening. 19th January.—Halted. The friendly Maoris went out to reconnoitre and obtain intelligence, the want of which much retarded my movements. 20th January. —Marched off at 10 a.m., having been delayed by the non-arrival of the Native Contiugont sent out yesterday; took with me twenty Military Train under Lieutenant Creagh, eighty rank and file 50th, and 100 rank and file 57th Eegiment, also about 120 Native Contingent under Major McDonnell. My object was to attack a strong position called Ahipipi, in which it was said several Natives were congregated. I detached the Native Contingent along the left bank of the Waingongoro Eiver, with directions to cross it at the edge of the bush, and endeavor to get in rear of Ahipipi, in order to intercept the retreat of the Natives. I advanced myself direct upon the position, and found it deserted; some, of the enemy, however, came down and fired on my party when in the act of destroying the whares ; one man of the 57th Eegiment was severely wounded. The Native Contingent were now ordered to pursue the enemy into the bush ; this they did vigorously, and within a mile of Ahipipi they came upon a large village. This party was supported by some of the 57th under Sir Eobert Douglas. After a heavy fire, and a stout resistance of about twenty minutes, the village was carried. A large number of the enemy were seen carrying off a body with much care. It is believed that a great Chief was killed, possibly of Kaukawa. A well furnished strong European house was erected dose to the mill or flagstaff; it was destroyed in common with everything to be found, including many cultivations Five of the enemy were killed ; one man of the Native Contingent wounded. The destruction of this place is considered of importance, as it was newly built by the Hau Haus with unusual care, and was as it were the head quarters of the fanatics in the neighbourhood. , 21st January.—Halted, and continued my efforts to obtain information. 22nd and 23rd January. —Convoy days. The friendly Natives went into the bush, and brought back a quantity of potatoes. 21th January.—Started at 8 a.m. ; took with me fourteen Military Train, eighty rank and file 50th, 100, 57th, and about 100 Native Contingent; proceeded towards Wheriwheri, which has been already destroyed, thence towards Tewhatiwe, crossed the AVaingongoro Eiver, and struck into the bush towards Ketemarai. I soon came upon clearances under careful cultivation, amongst the rest about two acres of wheat, much India (-urn and tobacco, and a number of fruit trees. All were destroyed. After along and harassing march the force returned to camp, via the Ketemarai road. 25th January. —At 4 p.m., considering that I no longer required the services of the 50th Eegiment, under Captain Doran, I ordered that officer to return to the Patea. 26th January. —Eested in camp. 27th January. —Eested again, and sent the Natives out to reconnoitre. They lost one man in the bush ; it was afterwards ascertained that ho was killed by the Hau Haus. 28th January.—A party of Natives went in search of their missing companion, but found no trace of him. On their return they were attacked in force by Hau Haus ; one of our Natives was killed, and another badly wouuded ; they reported having killed three Hau Haus. 29th January. —Took 100 Imperial Troops, fifty Natives, all available carts Commissariat Transport Corps, to Ketemarai, for firewood. 30th January.—Halted. 31st January.—Sent another party to Ketemarai. They came upon fresh cultivations concealed in the bush; these were destroyed, and quantities of vegetables brought into camp. Ist and 2nd February. —Eemained in camp in consequence of the inclemency of the weather. 3rd February. —Sent out a party consisting of eighty rank and file, 57th Eegiment, and some friendly Natives, towards Ketemarai for firewood. H. Butmeb, Major and Lieut.-Colonel 57th Eegiment, Camp AVaingongoro, 4th February, 1866. Commanding Garrison. Nominal Eeturn of Officers and Men Killed and Wounded in an Engagement with the rebel Maoris at AVaikoko, on the Ist February, 1866, with the Field Force under the command of MajorGeneral Chute: — 2nd Battalion 14th Eegiment—Private William Burns, aged 35, musket bullet through the chest, killed. Irregular Forces (Yon Tcmpsky's Forest Eangers)—Private Alexander Davidson, musket bullet wound, left thigh, severely. C&ptain Corbett's Bushrangers—Sergeant John Purdy. musket bullet wounds, right shoulder and left thigh, slightly ; AViremu Matakatea (Maori), musket bullet wound, left thigh, severely (the man was wounded on the night of 31st January, near AVaikoko.) Chief Ihaia's Volunteers—Henerc AVinemikc, musket bullet wound, abdomen, slightly. Alexander Gtbb, M.D., Deputy Inspector-General of Hospitals. 23

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Sub-Enclosure 3 to Enclosure 2 in No. 33. Te Ua's Letter to the Rebels. [Translation.] AVaingongoro, 2nd February, 1866. Go this my letter to the tribe consisting of Euanui, AVaikato, Eawhawa, and Kohuhuna, Salutations to you all. I have arrived here: lam going to Wanganui in order that I may see the Governor : Enough about that. Here is a message from me and the Chiefs of AVanganui, Hori Kingi, Mete, Kawana, and the others, also from (Doctor) Featherston, and the General. Let evil be brought to an end, and come all of you, in order that wo may at once assemble with them and be united. If your thoughts are perplexed write us a letter, in order that we may know it, and in order that the General may cease operations against you. If, otherwise, there is an end of it. Ended. Te Ua. Sub-Enclosure 4 to Enclosure 2 in No. 33. Reply to Tel Ua's Letter. [Translation.] To Te Ua, Hau Mene, —Friend, salutations! Your letter calling upon tho tribe to assemble together and to be of one accord has been received. This is the reply to your letter: Father, where is the tribe ? The tribe is already there, assembled before you, and within the reach of (or obedient to) your voice. Go you to the Governor and ascertain (the intention) in that direction. AVho aro they whom you invite to assemble together to-day? AVho shall collect the broken fragments of the tribe —tho scattered remains of the dead in the depths of the forest (" Haouni o Tane") ? Eather let the absent one take thought respecting the suffering of the persecuted tribe. Enough. From Tatjice Hoki.

No. 34 Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Bight Hon. Edward Cardwell, M.P. (No. 25.) Government House, Wellington, Sir,— 21st February, 1866. I have the honor herewith to transmit for your information a copy of a letter I have received from the Chiefs of Botorua and Taupo, begging me to pay then* country a visit, in the same manner I did in the year 1850. 2. This letter emanates from friendly Chiefs, but from the tone in which it is written, and from communications made to me by other Chiefs, I believe that this is the only real opening which has yet presented itself of the Government coming to an understanding with many of the principal Chiefs of the Island, who have taken part against us. 3. In compliance therefore with the wishes of my Eesponsible Advisers, and in accordance with my own views of what ought to be done, I propose in a few days to proceed to Tauranga, and thence by way of Maketu to the interior of this Island. I have, &c, The Bight Hon. Edward Cardwell, M.P. G. GBEY. Enclosure in No. 34. Tahv/ei o EiANGI and others to the Goveejtob. To the Goveexoe or New Zealand, — Maketu, 3rd February, 1866. 0 Father, salutations to you, the parent of the Maori tribes. If you are willing, listen to the request of the people which has reached you, that is to say— The desire of this tribe is for the sole of your foot to stand upon their land, in the same manner as upon the occasion of your visit in 1850; and this is a request for you to come to fulfil your promise made in 1862. This is a saying of our ancestors: " Pikipiki motu motu ka hakia he huanga " (come again at intervals ; return as a relative.) Another is very good for a paid shepherd to visit us at times, but better still for the chief shepherd. Now these are the causes which lead to the anxious desire of your tribe for you to come. It occurred to us that it was not wrong to ask you to come during a busy time, for this was a custom of long-standing. If trouble came upon any man, and any went to console him, his mind was relieved. There are two causes which administered relief: Ist. Talking as a friend mouth to mouth ; 2nd, seeing another face during the time of trial. Hence, then, is it that your tribe earnestly desire that (you) Tamate Kapua come to Maketu, and go (inland) as far as Eotorua-nui-a-kahu, that tho women and children may rejoice at your coming.

Mi a MB,

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If it be impossible for you to come by reason of the press of business which forces itself upon you in your administration, here is the word of your tribe,- —appoint a time for your friends the chiefs to visit you, for exceedingly great is the desire of your tribe to see you. Here end the words to you. Taiiuei 0 Eangi a:xd othebs.

No. 35. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Bight Hon. Edavard Cardavell, M.P. (No. 31.) Sir,— Auckland, 23rd March, 1866. I have the honor to report that since I left Wellington I have visited Napier, Te Wairoa, Turanga, Waiapu, and Opotiki. 2. The first of the above-named localities was the only point at which the Hau Hau fanatics had not given way; but on my arrival at Napier they availed themselves of the opportunity afforded them of relinquishing their superstition, and voluntarily came forward, made their submission, took the oath of allegiance, and gave up their flags. 3. At all the other points I visited I found the Hau Hau fanatics entirely subdued, and tranquillity fully established. 4. The disturbances which have for so long a time unhappily prevailed are thus at an end, and I see every reason to hope that the existing tranquillity will not again be disturbed, and that New Zealand will continue rapidly to progress. 5. As a curious illustration of the change that has taken place in the country, I have the honor to enclose the copy of a letter which Mr. George Graham has received from William Thompson, from which you will find that he is about to bring his claims to land before the Land Court in the ordinary way. lam on the point of starting for Tauranga, there to meet the tribes of Eotorua and the interior, and I fear that from this cause I shall not have an opportunity of sending you any further letters by the April mail. I have, &c, The Bight Hon. Edward Cardwell, M.P. G. GBEY.

No. 36. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Bight Hon. Edward Cardavell, M.P. (No. 33.) Sir,— Maketu, 28th March, 1866. I have the honor to report my arrival at this place yesterday, where I found a large body of the Arawa tribe waiting to receive me, and to accompany me into the interior of the country. 2. This morning early a message was sent to me from Te Heuheu, the chief of Taupo, informing me that he had, in company with Herekiekie, the chief next in rank to himself, arrived at Tarawera, and that as soon as he heard of my arrival at Maketu, he would move on to Ohinemutu to meet me, and that it was in consequence of a correspondence, a copy of which I have the honor to enclose, that he had determined on making his submission to the Government. 3. Te Heuheu and Herekiekie were the only Taupo chiefs who remained in arms against the Government. The whole of the central portion of this Island may therefore be regarded as having again returned to their allegiance. I have, &c, The Bight Hon. Edward Cardwell, M.P. G. GBEY.

No. 37. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Bight Hon. Edward Cardavell, M.P. (No. 34.) Sir,— Ohinemutu, 29th March, 1866. I have the honor to report that on my arrival here I found the rebel

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Chiefs Te Heuheu and Herekiekie waiting for me. They have made their complete submission to the Government, and, in order that their sincerity may be placed in the most unequivocal light, they have undertaken to leave their homes and families, to remain with me as long as I may think necessary, accompanying me to such other parts of the Island as I may visit. 2. Nothing could exceed the satisfaction exhibited everywhere by the Native population at the interior of the Island being again visited by the Governor. I have, &c, The Eight Hon. Edward Cardwell, M.P. G. GBEY.

No. 38. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Bight Hon. Edward Cardwell, M.P. (No. 35.) Sir, — Kawau, 12th April, 1866. I have the honor to transmit for your information a copy of a Memorandum I have received from my Besponsible Advisers, complaining of failure on the part of the Peninsular and Oriental Company to complete their contract for arriving in Australia with the European Mail on certain specified dates, and suggesting that certain measures should be adopted in consequence of this failure on the part of the Company to fulfil their contract. I have, &c, The Bight Hon. Edward Cardwell, M.P. G. GBEY.

Mr. Stafford,

March 28, 1866.

Enclosure in No. 38. Copy of a Memoeaxdoi by Mr. Staffoed. ' ' Eeferring to the Memorandum which Ministers addressed on the sth January to His Excellency, ou the subject of the repeated failure of the Peninsular and Oriental Company to arrive punctually in Australia with the European Mail, on their due dates, Ministers desire to represent to tho Imperial Government that, since that Memorandum was written, the last two monthly mails from Great Britain have again failed to arrive when due, and that considerable pecuniary and other loss to the Colony has thereby ensued. Ministers, after a very considerable experience of the failure of the present contractors to perform the service which they have undertaken, are strongly of opinion that the necessary notice should be given for terminating their contract, and that fresh tenders for the performance of the service should be called for. As complaints have been made, with apparent justice, that in the last call for tenders for the Steam Packet Service between Great Britain and Australia, time was not given for tenders to be received from the Colonies for the performance of that service, Ministers think it desirable that in the next call ample time should be given for that purpose. Wellington, 28th March, 1866. E. W. Staffoed.

No. 39. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Bight Hon. Edward Cardavell, M.P. (No. 36.) Sir,— Baglan, 3rd May, 1866. I have the honor to report that on the Ist instant, William Thompson, in compliance with the wishes I had expressed to him, came to Hamilton to meet me. 2. He spent the greater part of the clay with me, and appeared to be on the whole well pleased with the future prospects of the country. 3. He assured me that in as far as his own tribe was concerned, or those tribes under his immediate influence, no danger whatever existed of any further outbreak; but he explained that great jealousy on the part of Bewi and the Ngatimaniapoto tribe had arisen, from the fact of William Thompson having made his submission to the Government alone, and without having first consulted with Bewi; and he went on to state that Bewi with his immediate followers were at Hang-tiki, about which place and the country in its immediate vicinity they had placed posts marking out boundaries, within which limits they intended to keep themselves in a state of complete isolation, Bewi having stated that he

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would never again look upon an European face. William Thompson added that his fear was lest some European or friendly Native who attempted to cross this line might be murdered, and thus a recommencement of disturbances might be brought about. 4. William Thompson in his conversation clearly showed that he was not very well disposed towards the Ngatimaniapoto tribe, in consequence of the line named by the Government, within which confiscated land might be taken, having included a large portion of his territory, and a very small portion of the Ngatimaniapoto country; which arrangement was, in his belief, unjust, inasmuch as many acts committed by himself and his tribe were far less blameable than those perpetrated by the Ngatimaniapoto tribe. 5. This complaint on his part was natural and founded on fact; but he at last understood that the object of the Government in taking land was less punishment than the intention of securing positions in the interior, the possession of which would ensure the safety of the European settlers and the future peace of the country. 6. I pressed upon him that it was a duty he owed to his tribe, and to the Native people of New Zealand, to be present at Wellington at the next meeting of the General Assembly, there to be in readiness to give evidence before any Committees of the Assembly on Native affairs, as it is possible that much legislation regarding Native affairs will then take place. He at first showed considerable reluctance to promise to go to AVellington, but ultimately on considering the whole matter, he undertook to be present at Wellington when the Assembly meets ; and he further agreed, on my pressing him to do so, that before the Assembly meets, he will go to the Middle Island, and visit some of the leading persons there who have always expressed themselves regarding him in a most friendly manner. 7. Before leaving me he was so well satisfied with his position with the Government, that he pressed me in the strongest manner to take him with me to England when I returned there, expressing great anxiety to accompany me on a visit to the Mother Country. 8. Before proceeding to Baglan, for the purpose of going from thence to the Waikato country, I had gone into the harbour of Kawhia, on the southern shores of which I understood that some of Bewi's people and some of the relatives of the so-called Maori King resided. 9. The Natives on the North shore of Kawhia Harbour all manifested the greatest pleasure about my visit. I found there Hori Te Warn, the Chief of Bangiaohia, who, having joined the rebels, had lost all his property and the larger portion of his land. The poor man was in great poverty, having been formerly one of the wealthiest Natives, but he was very cheerful, and admitted fully that his sufferings were the result of his folly in having yielded to the wishes of las people, and thus engaged in the rebellion. I assisted him on the part of the Government with the articles necessary to re-establish himself in life on the landed property he has at Kawhia, and left him quite happy and contented. 10. His son, Taati Te Waru, is still a leading chief amongst the rebel Natives, he having refused to come in; ,but his father told me that he believed he would in a short time join him, and then make his submission to the Government. I have since heard that a day or two after I left Kawhia, he arrived there, and joined his father. 11. Captain Eremantle, commanding the "Eclipse," landed on several points on the southern shore of the harbour of Kawhia, accompanied by Dr. Hector. They were civilly and well received by all the Natives but one; but as these Natives had sent no message to me, I thought it best to leave them to themselves, and not for the present to1 try to force an interview upon them, more especially as I had then already heard that Bewi had expressed himself as desiring never to see an European face again. 12. Some of the family of Matutaera, the chief chosen as king, had formerly been well known to me. Amongst these was an old lady named Te Paea, who had the charge of Matutaera's eldest son, who is named after me. She was residing with the lad near Hangitiki. I wrote her a few friendly lines, and sent 21

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them to her by a Native who was a connection of hers. You will see from the enclosed letter that she in return sent the most friendly messages to me, but was too ill to leave Ilangitiki. Matutacra's second son was also very ill. 13. On the receipt of this intelligence, which reached me at Hamilton, I sent a messenger to Te Paea with some medical comforts. When my messenger from Hamilton arrived within a quarter of a mile of Hangitiki, he was prevented by tbe Natives from crossing the line laid down by Bewi, which I had not then heard of, but which AA rilliam Thompson subsequently told me of. At that point the Natives said that Bewi was only secluding himself in his own place as European gentlemen did, and that he intended to prevent either Europeans or friendly Natives from trespassing upon his grounds; that my messenger might pass the line if he pleased, but that if he did so he must agree always to live there. 14. He therefore left his package and letter to be forwarded to Te Paea, and returned to me at Hamilton. 15. I hope that Bewi wfil not long continue to maintain this line between Hamilton and his own place, forbidding all Europeans and Natives to pass it, as I fear if he does so it will involve him in disputes with other tribes. I have no fear of any general disturbance growing out of this circumstance, but it is clearly most desirable that even local quarrels and contests should not again break out in the Northern Island. 16. My hope is that Bewi, finding how completely isolated a position he now occupies, will shortly follow the example set him by the very great majority of chiefs who have been in arms, and come in and make his peace with the Government. 17. The state of things is at present, as far as Bewi is concerned, most anomalous. Rewi and his followers were within thirty miles of me, celebrating the religious sendees of the Hau Hau fanatical faith, whilst Te Ua the former prophet and founder of this faith, and framer of these religious services, was taking part in the service of the Church of England on board H.M.S. " Eclipse," having renounced the Hau Hau doctrines, and having made a full statement of the delusions under which he was suffering when he imagined he had those visions which led him to found and promulgate the Hau Hau superstition. I have, &c, The Bight Hon. Edward Cardwell, M.P. G. GBEY.

No. 40. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Bight Hon. Edward Cardwell, M.P. (No. 39.) Government House, Wellington, Sib,— oth May, 1866. In reply to your Despatch No. 88, of the 15th of November last, I have been requested by my Eesponsible Advisers to state for your information that there are at present three mail services- subsidized to convey mails between Australia and New Zealand, in connection with the main line between England and Australia, viz., one from Sydney to Auckland, one from Sydney to Cook's Straits, and one from Melbourne to Otago. These sendees will be maintained until the Panama Service is established, after which it is probable that not more than two subsidized services will be kept up. The share of the subsidy to be contributed by the Imperial Government on account of tbese services will not exceed (as has been already intimated) six thousand five hundred pounds (£6500) a year, until the termination of the full period of the original contract with the Intercolonial (now Panama), New Zealand, and Australian Boyal Mail Company in November, 1868. I have, &c, The Bight Hon. Edward Cardwell, M.P: G. GBEY.

A.-No. 1.

No. 41. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Bight Hon. Edward Cardwell, M.P. (No. 41.) Government House, AVellington, Sir,— Bth May, 1866. In reply to your Despatch No. 104, of the 23rd of December, 1865, transmitting a copy of a letter from Sir D. Cameron to the Secretary of State for War, enclosing a communication from a settler at Wanganui, impugning the conduct of the Provincial authorities, in reference to the purchase by the Government of a block of land at Waitotara from the Natives, I have the honor to enclose the copy of a letter from Dr. Eeatherston, the Superintendent of the Province of Wellington, in reply to the charges advanced by General Cameron. I have, &c, The Bight Hon. Edward Cardwell, M.P. G. GBEY.

1 I May 3,1866.

Enclosure in No. 41. His Honor I. E. Feathebstox to the Hon. E. W. Staffoed. Sib,- — Superintendent's Office, Wellington, 3rd May. 18GG. I have to express my regret that, owing to my absence from AVellington, I have been unable sooner to reply to the letters of Sir Duncan Cameron and Mr. Field relative to the purchase of the Waitotara Block. Before noticing tho specific charges preferred by General Cameron, on the sole authority, it now appears, of Mr. Field, it may be well briefly to sketch the history of this Waitotara purchase : The owners of the block had for many years been pressing its sale upon the Government, but it was only on the occasion of Governor Gore Browne's visit at AVanganui, in May, 1859, that they became so urgent that Mr. Commissioner McLean, •who had tboroughlv investigated the title to the block, paid them £500 (five hundred pounds) as an instalment. This sum was given in equal proportions to the five principal chiefs, and was by them immediately distributed amongst their followers. The survey of the block and reserves was at once commenced, and after considerable time completed. A reference to the final deed of purchase will show with what care and accuracy this was done. Not only are the names of the surveyors and the Natives who assisted them given, but we are told by whom each line was surveyed, and by what Natives almost every pole was erected and every survey peg inserted. Take for example the Pakaraka reserve : " The second (reserve) is named Pakaraka and Paki Ngaio. The upper boundary of this piece of land is Mr. Porter's line. The lower boundary was surveyed by Mr. Porter, assisted by Piripi and others. The side-lines were surveyed by Mr. Stewart with Piripi and others. The survey poles on one side were erected by Piripi and Nare; those on the south-eastern side were erected by Eihari and Motuarama. This block contains three thousand three hundred acres. This block was formerly of larger dimensions, but has vow been reduced by Dr. Featherston. Mr. Porter and Piripi laid off the line reducing it, namely the lower boundary line." The chiefs here named have been, and still are, actively engaged in rebellion. After the survey was completed, the Natives became clamorOus for the completion of the sale, and sent one or two deputations to AVellington, to hasten it; but in consequence of Mr. Commissioner McLean's illness and absence at Auckland, the negotiations remained in abeyance for two years. During this period several of the principal chiefs joined the King movement, became rebels, and insisted on the Waitotara Block being handed over to King Potatau. A dispute then arose between them and the loyal Natives, who called upon tho Government to complete the purchase. At length both parties agreed to refer the matter to Potatau, and to abide by his decision, The old chief Aperahama headed the deputation of Kingites and anti-sellers ; Eio was the advocate of those who maintained that the land had already passed to the Queen. A regular Court was held by Potatau, and the proceedings were conducted with great form and solemnity. Aperahama having been first called upon by the Court, stated his case, and urged Potatau to accept the land—in other words, to take the lands under his protection, and to prevent the sale. Eio then pleaded the case of the sellers, and seems to have made a profound impression on his Majesty's Court; for when Aperahama urged his right of reply, the judges informed him that they had heard quite enough, and then, after deliberating for some time, gave, as their final decision, that Aperahama hadn't a leg to stand on ; that he and those he represented had been consenting parties to the sale, and had received an ample share of the first instalment of £500 ; that the land had been fairly sold, belonged to tho Queen, and must be handed over. King Potatau farther ordered Aperahama not only to cease all further opposition to the sale, but forthwith to remove from the block, and take up his quarters on the other side of the AVaitotara Eiver. Aperahama, on his return from the Waikato, at once implicitly obeyed these orders. At about the same time that Aperahama thus quitted the block in obedience to Potatau's mandate, Hare Tipine, another principal chief, who had received £100 of the £500 instalment, called a meeting of the tribe, and after publicly announcing his intention to join the rebels at Taranaki, formally renounced his claims on the block, and urged the tribe to complete the sale, declaring that in all probability he should never return. All opposition to the sale having thus been withdrawn, the Government had not the slightest excuse for refusing to comply with the demand of the Natives that the price should be fixed and the purchase completed. It was not till after many meetings that the sum of two thousand five hundred pounds was, in March, 1563, agreed to as the amount to be paid for the block; and it was not till July, 1863, after the most ample notice had been given to all claimants to come in, that the final deed of purchase was signed, in the presence of the AVanganui chiefs, and the balance of the purchase money

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(£2,000) handed over to the two chiefs Eio and Piripi, appointed by the tribe to receive it. Instead of distributing it then and there, Eio and Piripi announced to the runanga that, as Hare Tipine and many others of their friends and relatives were at present lighting against the Queen at Taranaki and might possibly return, when they would wish to make lliem a present, they would lodge the money in the bank. The money thus lodged on a deposit receipt, was not withdrawn till May, 1861, when I believe it was fairly and equitably distributee!. Having thus given the history of the purchase, I proceed to notice General Cameron's charges and statements in regard to it. In the private letter which General Cameron wrote to the Governor on the 28th of January, 1865, from AVanganui, he says —" Since I have been in this part of the world, I have made inquiries about the purchase of the AVaitotara Block, and have reason to believe that it was a more iniquitous job than that of the Waitara Block." AVhcn challenged by Sir George Grey to inform him "of the nature of the enquiry he had made about the purchase of the Waitotara, what were his reasons for believing that it was an iniquitous job, and upon whose information his opinions were founded?" General Caineron, instead of meeting the challenge, says in his letter of the 12th of June, 1865, —" It is no part of my duty to collect information for your Excellency on such a subject as the purchase of the AVaitotara Block, regarding which you have ample means of obtaining all the information you require, and I therefore decline entering into any correspondence with your Excellency on the subject." ,And yet General Cameron, in a letter addressed on the 7th of July, 1865, to the Eight Hon. the Secretary of State for War, professes to give a detailed account of the purchase of the AVaitotara, explaining the way in which he obtained his information in these terms —" It was in riding into Wanganui a day or two after the engagement at Nukumaru that I received the above account, the truth or falsehood of which I had no means of ascertain in.;, but my informant was a very respectable settler, who had been a long time in the country and appeared well acquainted with the history of the transaction ;" and then on this statement "the truth or falsehood of which (he says) he had no means of ascertaining " though in his private note of the 28th of January he had declared that he had made enquiries, General Cameron proceeds to found and forward to the Secretary of State for AVar the gravest possible charges against officers of the Colonial Government. Ist. AVith respect to General Cameron's assertion, "that the purchase of the AVaitotara Block was a more iniquitous job than that of the Waitara Block," I unhesitatingly affirm that the validity of the pure-base has never been in the slightest degree questioned by the Natives. Of this, the following proofs amongst others may be adduced: Ist. A reference to the deed of sale shows that the boundaries, both of the block and of all tho reserves, were marked off by the principal chiefs themselves (in the case of the AVaitara, it is notorious that the surveyors were turned oft' the instant they appeared on the block). 2nd. When some time afterwards it was agreed to reduce the Pakaraka Eeserve, the same chief (Piripi), who had laid it off, pointed out the pegs and assisted in laying off the new boundary. 3rd. AVhcn the rebel Kingites in 1862 begged Potatau to accept the land and to forbid its sale, King Potatau decided that the land had been fairly purchased, belonged to the Queen, and ordered them to complete the sale. 4th. AVhcn, in October, 1864, the rebels refused me admission into tho AVeraroa Pa, they admitted that it was built on Queen's land. sth. AVhen the pa was captured, the chiefs who then surrendered, made a precisely similar admission to His Excellency Sir George Grey, adding that neither they nor anybody else had ever disputed the sale of the block. 6th. Major-General Cameron himself is compelled to confess that the troops under his command were unmolested as long as they were on Queen's land—" That it was not until the troops entered the village of Nukumaru (Hare Tipine's reserve) that their advance was opposed by the Natives, and that on that occasion a severe engagement ensued between them." 7th. It was not until General Cameron marched upon the Nukumaru Eeserve that the road party was interfered with; so far from the Natives objecting to the road being made, they voluntarily allowed it to be carried through their reserves. Even that arch rebel Hare Tipine, who is still in arms against the Queen, when he heard that it was the intention to avoid his reserve, sent me word that I might Like the road through any part of it, and that no opposition would be offered to the road being carried to the Waitotara Eiver. The party who drove off the road party on the 21th of January, 1865, without injuring any of them, were not AVaitotara Natives, but strangers on their way to join the rebels in their attack upon General Cameron at Nukumaru. Bth. AVhen a band of AVaikatos came to Waitotara to purchase supplies from storekeepers connected with the road parties, the AVaitotara Natives compelled them to leave all their arms on the north side of the river, before they would allow them to eross —saying that they would not allow the road parties to be molested as long :us they were engaged on the south side of the river. Surely these facts sufficiently show that there is not tho slightest foundation for General Cameron's opinion, that the purchase of the Waitotara was a more iniquitous job than that of the Waitara. The oidy question that has, as far as I am aware, been raised in connection with this purchase, is, whether certain Natives resident in Wellington were not entitled to some small present out of the purchasemoney. But though these Natives, at my request, went to AVanganui for the purpose of preferring their claims, and actually lived ten days or a fortnight with the sellers at Pakaraka, they never uttered a word about their claim. It is equally easy to dispose of General Cameron's other charges and statements, for there is scarcely a particle of truth in any one of them. General Cameron states that "the land (i.e., the AVaitotara Block) was hurriedly sold (by the Government), without the usual notice by advertisement, to a few speculators in AVellington, at ten shillings an acre ; the sum realised being £13,000, the amount paid to the Natives being £2,500. Hare Tipine and other chiefs protested against the sale at the time," &c. I annex a return to show how little truth is contained in this circumstancial statement. It shows that the usual notice of sale was given, the notice required by law being not less than one month, nor more than three. It also proves that instead of being Bold to :i few speculators in Wellington, thirty out of the thirty-eight purchasers were settlers resident at AVanganui, nearly all the remaining eight being residents it is true in AVellington, but who bought the hind for the purpose of locating themselves upon it. By the same return it will be seen that the sum realised, instead of being £13,000, was only £5,259.

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I have clearly proved that none of the chiefs ever questioned the validity of the sale, that Hare Tipine especially, after formally at a great meeting handing over all his claims to Eio and others, insisted upon the sale being completed. The assertion that they protested against the Government selling lands, which they admitted belonged to it, is too absurd to require notice. General Cameron next states, " that the Government, anticipating opposition to the occupation of the block, commenced a road from AVanganui to the Waitotara." It seems a sufficient answer to this to say that if such had been the case, the last thing the Government would have attempted would have been the formation of a road through a block in dispute ; but General Cameron himself' writes, that to the construction of this road the Natives made no serious opposition, until General Cameron had occupied Hare Tipini's reserve. "In it," says General Cameron, " the AVeraroa Pa was constructed, as a protest against the further continuance of the road." The Weraroa is not in Nukumaru Eeserve, but on Queen's land, adjoining the Perekama Eeserve on the AVaitotara Eiver, and was constructed, not as a protest against the continuance of the road, but solely and expressly for the purpose of disputing the passage of the river by tho troops. With respect to the General's account of the death of Eio, there was no more connection between his murder and the sale of the AVaitotara, than there is between Goodwin Sands and Tenterden Steeple. Even General Cameron's respectable settler, Mr. Field, confesses that " when Eio was killed by the AVaikatos, it was not till after he had made himself conspicuous on the occasion of General AVaddy's reconnaissance of the AVeraroa, and was as much in revenge for his having been with the troops in the Waikato, as for his acting as a spy and his connection with the sale of the land;" and further adds, addressing the General, " during your own operations your forces were not interfered with, till you crossed the Nukumaru Eeserve boundary, but there you were attacked at once, as trespassing on land to which the Government could have no possible shadow of a claim." This amounts virtually to an admission that if General Cameron had avoided treading upon the Native reserves, he and his army might have marched all over the block without encountering any opposition from the Natives. Having thus noticed, and I trust satisfactorily rebutted all the charges made by General Caineron in reference to this transaction, and having further proved that General Cameron had ample means of ascertaining the truth or falsehood of all the statements contained in his letter to Lord de Grey, T submit that I have a right to complain of the unfair and ungenerous course pursued by Mr. Secretary Cardwell in publishing such grave accusations in a Parliamentary Blue-book, without first affording me an opportunity of replying to them ; and also that I have a perfect right to call upon Mr. Cardwell to lay this communication, immediately on its receipt, before Parliament. I have, &c, I. E. Featherston, The Hon. E. W. Stafford, &c. Superintendent. Sub-Enclosure 1 to Enclosure in No. 41. Proclaiiattox. By His Honor Isaac Earl Featherston, Esq., Superintendent of the Province of AVellington, in the Colony of New Zealand. I, Isaac Earl Featherston, Superintendent of tho Province of AVellington, do hereby proclaim and notify that the block of land described in the Schedule hereunto annexed, except any reserves therein mentioned, will be open for purchase and selection at the Crown Lands Office, AVellington, on and after Monday, the seventeenth day of October, one thousand eight hundred and sixty-four, under the Land Eegulations of the fourth day of March, one thousand eight hundred and fifty-three, and the Additional Land Eegulations of the fifteenth day of February, one thousand eight hundred and fifty-five. Given under my band and issued under the Public Seal of the Province of AVellington, at (1.5.) Wellington, this fourteenth day of September, 1861. By His Honor's command, I. E. Featherston, J. Woouward, Acting Provincial Secretary. Superintendent. Schedule. Province of AVellington: AVaitotara Block, estimated to contain 26,000 acres. Boundaries.—The Southern boundary is the sea from the mouth of the Okehu to the mouth of the AVaitotara Eiver. The North-western boundary is the AVaitotara Eiver from its mouth to the commencement of Porter's line at Karewarewa. The Northern boundary is Porter's line from Karewarewa to the Okehu Eiver; and the Eastern boundary is the Okehu Eiver from Porter's line to the sea. Those portions of land colored red on the map on the back of this deed are not included in the present sale. The boundaries of the portions of land remaining sacred to us are as follows : — Ist. The first is called Okehu, situate on the banks of the Eiver Okehu, and estimated to contain 380 acres, surveyed by Mr. Stewart, assisted by Te Peina. Their survey poles are also erected. 2nd. The second named Pukaraka and Puke Ngaio. The upper boundary of this piece of land is Mr. Porter's line. The lower boundary was surveyed by Mr. Porter, assisted by Piripi and others ; the side lines were surveyed by Mr. Stewart, with Piripi and others. The survey poles on the Northern side were erected by Piripi and Hare; those on the South-eastern side were erected by Eihari and Motuarama. This block contains 3,300 acres. This block was formerly of larger dimensions, but has now been reduced by Dr. Featherston ; Mr. Porter aud Piripi laid off the line reducing it, viz., the lower boundary live. 3rd. The third, named Nukumaru. This block was surveyed by Mr. Stewart, assisted by Hare and Himiona, and their survey poles are standing. The pole in the Lake (AVaikato) was erected by Hctaraka. The block is estimated to contain 1,223 acres. 4th. The fourth, named Mancene, was surveyed by Mr. Stewart, assisted by Piripi and Horopaperil; their survey poles also arc erected ; it contains fifty-eight acres. 25

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sth. The fifth, named Maraetoa, situate on the banks of the Waato&ra River, surveyed by Mr. Porter, with Pirimona and Hakaraia ; they erected the survey poles. This piece is estimated to contain twenty-nine acres. 6th. The sixth, named Perekama, situated between the Waitotara and Ohio Rivers ; Mr. Stewart, assisted by Heteraka and Hare, surveyed this block, and erected the poles on the Ohio side; Rio, Ihaka, and Hona erected the poles on the Waitotara side, it is estimated to contain 925 acTes. 7th. The seventh, named Auroa. The boundaries of this block were surveyed by Mr. Stewart, assisted by Kereti and Teritiu ; their surrey poles are erected on the Southern side. The AVaitotara River is the boundary towards the South-east. It contains 137 acres.

Sub-Enclosure 2 to Enclosure in No. 41. SCHEDULE of Purchasers in the WAITOTARA BLOCK, with the Amount Realized.

AMOUNT B: :alized. NAME. CONTENTS. EESIDENCE. Cash. Military Land Orders, &c. Jalrick Shields ... William Massey... William Kei Is ... iobcrt Pharazyn ■*eter Barber Javid Peat Stomas Peapell ... 'olm Staudley ... Llexander Pevman _. Cullum leirs of J. Kells Hiehael O'Brien fames Kane Llexander Paterson jawrenco Meara ii'<>,-■_;' Masterton teick McEroy tobert Tavlor ... \ Coaklev iames Eapley 3. J. Campion ... fames Burke olin Lee iV'illiam Collopy tobert Crichton dicliael Connor ... ]lark Dunn Um Callaghan ... iliclia■•' Mahony fohn Byrne i. F. Allen fames McFadden Patrick McShane Hiehael Emmerson folm Toole AT. Hickmett ... fames Matthews 3. 11. H. Hastings AVanganui Wellington Wanganui Wellington Wanganui Wanganui AVanganui Wanganui Dunedin. Otago Wanganui Wanganui Wanganui Wanganui Wanganui AVanganui Essex, England Wellington AVellington Wanganui Wanganui Wellington Wanganui AVanganui AVanganui AVanganui Wanganui AVanganui Wanganui Wanganui Wanganui Wanganui AVanganui AVanganui AVanganui Wanganui AVanganui AVanganui AVellington ..'. Acres. 60 100 80 3712 60 2S00 60 810 1820 60 60 60 60 205 80 400 60 15S 60 • 80 130 60 60 60 80 60 80 80 60 60 80 60 60 60 60 60 60 400 £ s. 50 0 d. 0 Acres. 60 1881 0 1 10 1400 0 0 0 0 SO 60 420 0 910 0 0 0 60 60 60 60 60 132 10 40 0 200 0 0 0 0 .60 79 0 0 60 80 65 0 0 60 60 60 80 60 40 0 0 80 60 60 40 0 0 60 60 60 60 60 60 400 12,475 £5259 0 0 19S0 Date of Proclamation throwi: ig flie Block open for sale ir sale, 17th October, 186 14th Septe: iber, 1864. Date on which thrown open f AVm. Holmes. Crown Lands Office, AVellington, =th April, 1866.

A.—No. 1.

No. 42. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edavard Cardwell, M.P. (No. 42.) Government House, Wellington, Sm,— 12th May, 1866. At the request of my Eesponsible Advisers, I have the honor to transmit for your information the enclosed Memorandum, and a Statement which accompanies it, showing that the sum of four hundred and five thousand one hundred and forty-six pounds and eleven shillings (£405,146 lis.) has been paid from the Colonial Treasury on account of Imperial Troops and services. I have, &c, The Eight Hon. Edward Cardwell, M.P. G. GEEY.

Mr. Stafford, April 10,1866.

Enclosure in No. 42. Copy of a Memorandum by Mr. Stafford. AVellington, 10th April, 1866. His Excellency's Ministers have given much attention to the question of the claims which have for some time been preferred by the Imperial Government against New Zealand. They believe it to be most desirable that these claims should be settled as soon as possible, and that no misconception with respect to them should continue to exist; and with that object they have endeavoured to ascertain the exact sum for which the Colony was fairly liable. They have however found it impossible to arrive at any definite conclusion on the subject. The claims have been stated in many different ways —sometimes classed under one head, sometimes under another, neither the classification nor the totals agreeing in the different statements; and in the absence of sufficient vouchers, or references not hitherto supplied, the Colonial Government has been in a great measure left to conjecture what the particular services might be in respect of which payment has been asked from the Colony. Ministers are aware that considerable sums have been issued from the Imperial chest, and rations and stores supplied by the Commissariat to the Colonial Forces. The Colonial Government has always desired to repay these advances, and with that object, notwithstanding the severe pressure on its finances, remitted some time since half a million of Debentures to the Imperial Government. But the advances which the Colonial Government has a knowledge of fall far short of the total claims now made by the Imperial Government; and Ministers respectfully submit, that without further information these claims (except such as comprise the advances made at the request of the Colonial Government), are either unintelligible, or, so far as they can be understood, appear to include charges for which the Colony has never rendered itself liable. The Colonial Government has always admitted and taken steps to discharge the liabilities incurred by it, and is now desirous that means may be afforded to it of determining the amount of its liabilities. In connection with this subject, Ministers have to submit that the Colony has a large claim against the Imperial Government for advances made from tho Colonial Treasury to defray the cost of charges incurred on account of Her Majesty's Eegular Forces. A statement is enclosed, showing approximately the amount of these advances, which, with a few exceptions, were made on the express requisitions of the Officers commanding the regular troops. The Colonial Government was induced to make these advances from an earnest desire to meet the wishes of the Imperial authorities to the fullest extent; and when it is considered that at the same time the Colony was also raising and maintaining large numbers of men at its sole cost to co-operate with the regular troops, and latterly to enable the troops to be withdrawn, it is submitted that the acts of the Colonists in the past, and the engagements they have entered into for the future, are without parallel for so small a community, and may fairly entitle it to the utmost consideration. It is probable that the statement now furnished may, in like manner as the claims made by the Imperial Government, require detailed explanation. Ministers believe that it would be difficult and cause much delay to attempt to supply by correspondence such explanations as would finally settle the questions at issue, and would therefore submit that, with a view to full explanations being given, the claims of the Imperial Government on the Colony, and those of the Colony on the Mother Country, should be subjected to a thorough examination, which it is believed could best take place in New Zealand, where the evidence in connection with them can be supplied. Such an examination would enable the respective claims to be settled without that delay and dissatisfaction which must otherwise en&ue. In the meantime it may be observed that the amount of the claim of the Colony, four hundred and five thousand one hundred and forty-six pounds eleven shillings (£405,146 lis.), when deducted from the claim of the Imperial Government—even assuming the total amount claimed by the latter to be admitted—reduces the sum due to the Imperial Treasury considerably below the value of the halfmillion Debentures already remitted, even if the latter were sold without the Imperial guarantee which was offered to be given to them by the Duke of Newcastle and Mr. Cardwell. It is requested that this Memorandum and the accompanying Statement may be transmitted to the Secretary of State for the Colonies. E. W. Stafford.

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Sub-Enclosure 1 to Enclosure in No. 42. NEW ZEALAND. STATEMENT showing Amounts paid from the Colonial Treasury, on account of Imperial Troops and Services.

102

DESPATCHES FROM THE GOVERNOR OF NEW

1858-9. 1859-60. 1860-1. 1861-2. 1862-3. 1863-4. 1864-5. 1865-6. Totals. . £ s. d. £ s. d. 4,627 2 3 3,974 8 1 £ s. d. 3,035 2 8 8,661 15 3 £ s. d. 693 14 31 £ s. d. 2,952 13 0 £ s. d. 10,163 4 9 £ s. d. 4,825 12 8 £ s. d. 2,975 10 2 £ s. d. 29,272 19 9 14,051 12 7 Blockhouses, Stockades, and defensible buildings for Imperial Troops Barracks for Imperial Troops, and repairs of ditto... Pay of Imperial Troops employed on roads, principally for military purposes, — Auckland Taranaki AVanganui Pay to Imperial Troops employed as a moveable column ... P»y to men of the Royal Artillery, as a mounted corps ... Cost of Saddles, Anns, and Accoutrements for ditto, and other Imperial Troops Pay of Interpreters and Guides to Imperial Officers ... ... ... ... Pay of Transport Corps and Militia attached to H.M.'s Commissariat ... Freight of Stores, 4c, on AVaikato River, for H.M.'s Commissariat supplying Imperial Troops ... Cost of Dockyard for Si earners on Waikato Cost of working Coal-mines for Steamers ditto Clearing Waikato River for passage of Steamers for landing and shipping Imperial Stores ... Harbour Boats, New Plymouth Shipping men, guns, and Royal Artillery, New Plymouth Wharfage on Military Stores, Auckland House for the Commodore in Auckland and Insurance on ditto ... Allowance to Officers and Men of H.M.'s ships Allowance to Imperial Troops at Otago Special Steam Service between Manukau, Raglan, and Wellington Ditto ditto, to Tauranga Charter of Ship for conveyance of Troops ... Charter of steamer " Egmont," sent to Tauranga for Troops Pay to O-uards in charge of Imperial Barracks, Wellington Passage of Military Prisoners to England, per " Sworcfiish" Rewards and Expenses for Capture of Deserters from Imperial Troops ... Fresh Beef supplied to H.M.S. " Eclipse," and Pilotage for ditto Rent of Premises occupied by Imperial Troops at Te Papa and Awamutu Postages, Naval and Military... Amount paid for four Horses taken from friendly Natives by Imperial Troops at Pukokororo 1,418 9 3: ... ... 3,500 0 0 . - 2,181 7 10 345 10 11 9,801 8 3 8,270 6 7 ... - ... 737 7 6 2,290 18 7 291 8 1 7,725 1 3 32,969 11 10 11,706 7 10 5,649 2 7 4,055 10 6 1,464 13 2 2,025 6 1 1,691 6 10 46,728 14 7 11,227 3 4 4,701 8 7 1,366 11 10 ... 104 7 6 781 9 1 1,250 0 0 8,870 5 5 2,403 14 3 10,350 17 5 22 15 0 783 10 8 1,762 12 11 510 12 8 29,905 19 4 82,847 0 3 9,952 16 1 4,518 7 10 39 12 0 1,913 0 7 661 2 9 395"lC 5 10,771 19 2 47' 9 3 1,203 5 3 55,735 13 11 23,387 2 4 16,000 0 0 4,078 5 6 2,985 11 4 6,078 17 7 2,919 4 0 95,131 14 4 82,817 0 3 21,227 8 8 10,423 1 8 1,406 3 10 3,500 0 0 104 7 6 1,760 10 4 1,250 0 0 9,000 0 0 4,911 7 1 2,565 0 0 650 0 0 108 0 0 200 0 0 658 13 2 28 17 1 2,246 12 3 36 0 4 375 0 0 12,024 7 6 189' 1 6 97 19 3 536 10 6 155 10 0 4,00o" 0 0 5,000 0 0 4,94l" 7 1 2,28o" 0 0 150 0 0 285 0 0 500 0 0 108 0 0 200 0 0 266 7 2 28" 17 1 145 10 3 392' 6 0 810 13 9 265" 8 3 22 0 4 550 0 0 475 0 0 14 0 0 406 0 1 363 14 3 740 10 11 1,426 3 7 1,562 18 4 1,880 15 4 375 0 0 2,822 2 6 2,822" 2 6 150 0 0 150 0 0 * 1,932 9 4 I 8,965 4 7 22,762 ' 2 1 405,146 11 0 19,937 8 10 10,010 5 5 39,4-82 1 8; 138,053 2 5, 164,003 16 8 Troaeury, Wellington, New Zealand, * 10th April, 1866. C. T. Batkin, Accountant to tho Treasury.

A.-No. 1.

No. 43. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edward Cardwell, M.P. (No. 43.) Government House, Wellington, Sir,— 12th May, 1866. I have the honor to transmit for your information the copy of a Memorandum I have received from my Eesponsible Advisers, in relation to the claims made by the Imperial Government against this Colony upon account of military expenditure. I have, &c, The Eight Hon. Edward Cardwell, M.P. G. GEEY.

Mr. Stafford, May 5,1865.

Enclosure in No. 43. Copy of a Memoea_tdtj__ by Mr. Stafford. Wellington, sth May, 1566. Eeferring to the subject of their Memorandum of the 10th April last, Ministers have to state that on an examination of the accounts, it appears that the sum of eighty-five thousand eight hundred and ninety-one pounds ten shillings and four pence, which has been frequently alluded to in the correspondence on this subject as an " admitted error," comprises in part the cost of sending out and locating the New Zealand Fencibles in the years 1847 to 1849; and in part the cost of the hire by the military authorities of the steamers "Tasmanian Maid" and "Wonga AVonga," employed by them in conveying supplies to Her Majesty's regular forces in the years 1860 and 1861. In some of the statements furnished, tho cost of the Fencibles is (although included in this sum of eighty-five thousand eight hundred and ninety-one pounds ten shillings and four pence (£85,891105. 4d.) also stated under a separate head as sixty-seven thousand nine hundred and twenty-seven pounds (£67,927), thus apparently swelling the total of the claims by that sum being twice reckoned. Irrespective, however, of this error, the charge in question is one as to which the Colony was never consulted, and which was never at the time or since submitted to, much less approved by the New Zealand Legislature, the Military Pensioners composing the Fencible Force having been sent out by Earl Grey when Secretary of State, long before the New Zealand Constitution Act was passed, or any Eeprcsentative or Eesponsible Government existed in the Colony, and when the Imperial Government was solely responsible for the peace of the country, and the cost of its defence was entirely borne by Great Britain. Ministers are of opinion that the New Zealand Legislature could not be expected to entertain a proposition to take on itself retrospectively charges which at the time when they were incurred were obligations of the Empire, even if the circumstances of the Colony would, as they will not, enable it to do so ; and they believe that Mr. Cardwell, on a consideration of these facts, will recognize that such a charge should not now be preferred against New Zealand, especially in the present state of its finances, and having regard to tho very large engagements for which it has to provide. AVith respect to the hire of the " Tasmanian Maid " and " AVonga Wonga," employed in the Commissariat service, the Colonial Government has never had anything to do with that service, which, whether by sea or land, has been at all times entirely controlled and provided for by the military authorities, without the Colonial Government being consulted, or having any right to interfere with respect to it. No such charge has ever before or subsequently been made with respect to similar services, either as regards the conveyance of supplies to the troops by land or by the different vessels engaged by the Commissariat, and Ministers are unable to discover how this charge came to be included amongst the claims made against the Colony. Ministers would also observe generally on the subject of these claims, that the sum of sixty-nine thousand and twelve pounds (£69,012) on account of the contribution of five pounds (£5) per man for the regular troops stationed in New Zealand, has not been deducted by the Imperial authorities from the amount claimed by them, notwithstanding the agreement to that effect made with the late Duke of Newcastle, and which was confirmed by the Imperial Treasury Instructions of the 13th July, 1862. The above-mentioned instances, amongst many others which might be adduced, sufficiently evidence the advisibility of a Commission being appointed to investigate the whole question of the accounts between the Imperial Government and New Zealand. E. W. Staffoed.

No. 44. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edward Cardwell, M.P. (No. 44.) Government House, Wellington, Sir,— 14th May, 1866. I have the honor to transmit for your information copies of a correspondence between myself and my Eesponsible Advisers, upon the subject of the rations still issued by the Commissariat to the Local forces. 2. My Eesponsible Advisers undertake, from and after the end of this month, to repay, monthly, the cost of all rations issued during the immediately preceding month to the local forces; but they inform me that they can only do so 26

IT. E. the Governor,Mar.24,7,S(«. Mr. Slaltunl, April, 13,1866.

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DESPATCHES FROM THE GOVERNOR OF NEW

104

by simultaneously stopping all expenditure on services imperatively required for the peace and welfare of the Colony, which must correspondingly suffer, both in the present and future, from the stoppage of such services. 3. As I am at present situated, I do not regard it as being within my power to forego the demand for the monthly payment of all rations issued to the local forces during the preceding month, and I have informed my Eesponsible Advisers accordingly; and I beg that I may be instructed by Her Majesty's Government, after they have perused the enclosed correspondence, whether or not, in adhering to this course, lam acting in compliance with their wishes. The Colonial Government are making every effort to provide for the rationing of the local forces at as early a date as possible. I have, &c, The Eight Hon. Edward Cardwell, M.P. G. GEEY.

Enclosure 1 in No. 44. Copt of a Memorandum by His Excellency the Governor. The Governor transmits for the consideration of Ministers a Eeturn he has received from General Chute, showing that three thousand five hundred and seventy-seven rations are still furnished by the Commissariat for the use of the Colony. The Governor earnestly trusts that Ministers will make speedy arrangements for relieving the military from this charge, regarding the immediate discontinuance of which the most stringent instructions have been issued by the Home Government. 21th March, 1866. G. Gret.

Sub-Enclosure to Enclosure 1 in No. 44. STATEMENT showing the number of RATIONS issued to Colonial Forces at all Stations in New Zealand, on the dates below specified, being the latest to which Returns have been received.

Enclosure 2 to No. 44. Copt of a Memorandum by Me. Stafford. Ministers have received His Excellency's Memorandum of the 24th ultimo, transmitting a return showing the number of rations now issued by the Commissariat to the Colonial Forces.

No or Eations Date op Station. latest Eetubn. Eemabks. daily. 1866. Auckland and Onehunga Ngaruawahia, for Hamilton and Cambridge WhataAVhata Fe Awamutn Bangiawhia... KihiKihi ... Alexandra ... rhames District 14 2,000 42 21 30 198 576i 116 194 14 110 22 37 9 90 1 1 5 1 1 8 80 4 16th March 9th 71 JJ JJ JJ JJ JJ JJ JJ 16th „ rauranga Napier Wairoa Expeditionary Force ... Mate Pero, Ngaruroro Lambert Eedoubt Waipukuaran Wanganui ... Patea JJ JJ 1st ,, a „ a J, 5, JJ JJ 1st February j, a Manawapou... v ... Waiongoro ... ... ... re Arei l)akuria Stoney Eiver Warea Opunaki n jj jj jj jj jj j, jj jj jj jj jj jj jj 3,577i Commissariat, ISew Zealand, Auckland, 21st March, 1866. H. Stanley Jones.

A.-No. 1.

Ministers are anxious to make arrangements for relieving the Imperial authorities from these advances, but the practical obstacles to such a course, under present circumstances, have hitherto been insuperable. The establishment of a Colonial Commissariat Corps, for a temporary object (as few rations will be required for Military Settlers after some months), would, even if it could bo effected, be a comparatively useless expenditure, having regard to the extensive machinery required for such a service. The apparent alternative of accepting contracts for the supply of all the stations, is equally beset with difficulties. The inaccessibility of some of the stations, the attendant risk, the absence of Colonial officers, trained as Eeceiving and Issuing Officers, would render it impossible to ensure regularity in the operation of such a system, and would render it enormously expensive. The issue of a money allowance in lieu of rations would appear to be the simplest and most satisfactory solution of the difficulty, but the Government is unable to decide on that course. By the conditions of service the men are entitled to rations for a certain time, and the Government could not justly compel or expect them to take a money allowance instead, without any provision being made that supplies of provisions were procurable at reasonable rates. The unsettled state of the country, which has prevented the establishment of butchers', bakers', and grocers' shops in the distant outposts, has hitherto rendered this unpracticable. All these circumstances considered, it is of the utmost importance that for the present the subsisting arrangements with the Commissariat be maintained, as the immediate stoppage by that department of rations in the Waikato District would necessarily entail great suffering and loss. If, however, the Imperial authorities will not consent to continue, even temporarily, this issue without immediate repayment of its cost, the Colonial Government will engage to m»ke such repayment monthly; but it can only do so, having regard to the funds at its disposal, by simultaneously stopping all expenditure on services imperatively required for the peace and welfare of the Colony, which must correspondingly suffer, both in the present and future, from the stoppage of such services. Ministers can confidently appeal to His Excellency's knowledge of the financial position of the Colony, and the circumstances by which it has for some time been affected, in support of these statements. AVith a view, however, to the present diminution of any change on this account on the Commissariat chest, and to its gradual removal altogether as soon as practicable, Ministers will adopt the following measures: — A money allowance of (Is. Cd.) one shilling and sixpence a day will be again offered to the Waikato Military Settlers instead of rations, and will be issued monthly to those who are willing to accept it. Notice will be given that after the 30th of June next the women and children will not receive rations in kind, but will have a proportionate money allowance at the above rate. The Government Agent at Auckland will be requested to ascertain and report whether tenders, within the power of the Government to accept, can bo obtained for the supply of rations to tho Colonial Troops at (Tauranga and the Miranda Eedoubt. 13th April, 1866. E. W. Stafford.

No. 45. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edward Cardwell, M.P. (No. 45.) Government House, Wellington, Sir,— .14th May, 1866. In my Despatch No. 42, of the 12th instant, I transmitted a Memorandum from my Eesponsible Advisers, showing that the sum of four hundred and five thousand one hundred and forty-six pounds eleven shillings (£405.146 lis.) had been paid from the Colonial Treasury on acccont of the Imperial Troops. 2. I thought it desirable that farther explanations should be afforded in regard to an item which appeared in the account attached to the Memorandum, which item related to " Eoads for military purposes." 3. I have now the honor to enclose for your information an additional Memorandum which I have received from my Eesponsible Advisers on this subject. I have, &c, The Eight Hon. Edward Cardwell, M.P. G. GEEY.

Mr. Stafford, May 12,1866.

Enclosure in No. 45. Copy of a Memorandum by Mr. Stafford. AVellington, 12th May, 1866. The Governor having desired some information with respect to the charges for " Eoads for military purposes," referred to in the Statement which accompanied their Memorandum of the 10th April, Ministers have to state, as an indication of the character of the charges under that head, that it comprises the cost of felling the timber for one hundred yards on each side of the road leading from Drury to the Queen's Eedoubt to the camp at Pokeno. That work was performed at the urgent request of Sir Duncan Cameron, who alleged that it was required for the safety of the troops passing along the road to and from the camps. The Colonial Government did not hold that opinion, but deferred to the pressing instance of General Cameron, from a desire that no ground which could be removed by them might be left to excuse inaction on the part of

105

ZEALAND TO THE SECRETARY OP STATE.

A.—No. 1

106

. DESPATCHES FROM THE GOVERNOR OP NEW

the troops in the presence of the enemy. The funds of the Colony were accordingly employed in the very expensive work in question, which the Colonial Government then and since, in common with others, considered to be useless. E. W. Stafford.

No. 46. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edatard Cardwell, M.P. (No. 49.) Government House, Wellington, Sir,— 28th May, 1866. I have the honor herewith to transmit a petition addressed to Her Most Gracious Majesty by Mr: Whitaker, the Superintendent of the Province of Auckland, praying that the Northern portion of the Colony of New Zealand, may be created into a separate and independent Colony. 2. I, at the same time, have the honor to enclose a copy of a Memorandum I have received from my Eesponsible Advisers to the effect that, in their belief, a compliance with the prayer of Mr. Whitaker's memorial would be most injurious to the welfare <jf the Colony. I have, &c, The Eight Hon. Edward Cardwell, M.P. G. GEEY.

May 15,1866.

Mr. Stafford, May 28, 1866.

Enclosure 1 in No. 46. Copy of a Petition from His Honor F. AViiitakee. To the Queen's Most Excellent Majesty. The humble petition of tho Superintendent of the Province of Auckland sheweth — That an election of a Superintendent for this Province of New Zealand has recently taken place, when Tour Majesty's petitioner was elected without any opposition. That the principal ground of the unanimity which prevailed in favor of your petitioner's election, was his well known view in favor of the erection of the Northern portion of these Islands into a separate Colony. That Tour Majesty's petitioner has long felt that a separate Government would be very advantageous, but his more recent experience, as Superintendent of this Province, has thoroughly satisfied him that a separate Government is essential to the peace, order, and good government of this portion of Tour Majesty's Colony. Tour petitioner therefore humbly prays that the Northern portion of the Colony of New Zealand may be speedily erected into a separate and independent Colony. Auckland, New Zealand, Feedk. Whitaker, loth May, 1866. Superintendent.

Enclosure 2 in No. 46. Copy of a Memorandum by Mr. Stafford. Eecommended that in accordance with Mr. AVhitaker's request tho accompanying petition bo transmitted to the Secretary of State. Ministers do not concur in the prayer of the petition, and believe that a compliance with it would be most injurious to the welfare of the Colony, and would not only materially retard its advancement in the future, but also take away from its ability to provide for its existing burthens. Wellington, 28th May, 1806. E. AY. Stafford.

No. 47. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Eight Hon. Edward Cardavell, M.P. (No. 53.) Government House, Wellington, Sir,— 29th May, 1866. In reply to your Despatch No. 18, of the sth of Eebruary last, I have been requested by my Eesponsible Advisers to state for your information, that the practice of giving a Colonial allowance to Officers of Her Majesty's vessels serving on the coast of New Zealand, was discontinued at the express desire of the Imperial Government, conveyed in the Duke of Newcastle's Circular Despatch of the 20th of July, 1862. My Ministers are also of opinion that, in the present state of the finances of New Zealand, the Legislature would not be disposed to entertain any proposal for renewing it. I have, &c, . The Eight Hon. Edward Cardwell, M.P. G. GEEY.

RECEIVED BY THE GOVERNOR OF NEW ZEALAND FROM THE SECRETARY OF STATE FOR THE COLONIES.

SCHEDULE OP DESPATCHES

XvMBEB IN Skim. Date ajtd Number. Subject. Page. I a 22nd August, 1865 (No. 65.) 22nd September, 1865 (No. 76.) Amount due to Imperial Government. Forwards letter from the AVar Office on the subject Purchase of land at AVaitotara. Forwards copy of Despatch from General Cameron and requests Governor's report thereon Forwards instructions of Secretary of State for AVar to the officer commanding Her Majesty's Troops ; trusts the Governor will do all in his power to enable the officer in command to carry out his instructions relative to the withdrawal of the five Eegiments... Forwards the answer of the Secretary of State for AVar to the reference made to him of the Governor's Despatch No. 73, of the 23rd May Forwards correspondence with the Treasury and the AVar Office on the subject of the system of Advances, considers that the question stands at present in a very unsatisfactory condition ... In reply to Governor's Despatch No. 106, of 14th August, enclosing Memorandum of Ministers protesting against the possible disallowance of " The New Zealand Settlements Act, 1863" Acknowledges Governor's Despatches Nos. 92, 93, 94, 97, 102, and 108, and expresses the views of Her Majesty's Government on the present state of affairs Expresses satisfaction at the success of Colonial Forces and friendly Natives on East CoastForwards letter from the Lords Commissioners of the Treasury, conveying their observations on the Financial Statement of Colonial Treasurer Instructions upon the subject of the withdrawal of Her Majesty's Troops in event of no appropriation being made Forwards further letter from the Treasury as to liabilities of Colony to Imperial Government Acknowledges Despatches Nos. 112 and 113, respecting Major Heaphy's claims to the decoration of the A^ictoria Cross, and transmits correspondence with the War Office on the subject ... ..., Payment of compensation to Mr. Alexander, as settler, for damage done to his property by certain of Her Majesty's Troops. Considers the liability to indemnify persons who may suffer losses of this kind to be a question for the consideration of the Governor's Advisers Transmits letter addressed to Sir D. Cameron by Mr. Field, a settler at AVanganui, offering a full account of the whole transaction of the purchase at AVaitotara Transmits letter from War Department respecting the additional expense devolving on Commissariat chest, through the hire of a steamer, rendered necessary by the occupation of two new stations on the AVanganui Eiver by Her Majesty's Troops ... Acknowledges Despatch reporting the murder of a Native named Kereti, sent by Brigadier-General AVaddy to make known to the Eebel Natives between Weraroa and the Patea, the Proclamation issued on 2nd Sept., and the probable murder of Mr. C. Eroughton ... Acknowledges Despatch reporting the resignation of Mr. Weld and his colleagues, and Mr. Stafford commissioned to form a new Government 3 0 23rd September, 1865 (No. 77.) 4 25th September, 1865 (No. 78.) 9 4 10 5 26th September, 1865 (No. 79.) 6 26th October, 1865 (No. 85.) 13 7 26th October, 1865 (No. 86.) 21 8 21 9 22nd November, 1865 (No. 92.) 27th November, 1865 (No. 93.) 25 10 25 27th November, 1865 (No. 97.) 26 11 27th November, 1865 (No. 99.) 30th December, 1865 (No. 100.) 12 27 13 20th December, 1S65 (No. 103.) 28 23rd December, 1865 (No. 104.) 29 i. 31 15 26th December, 1865 (No. 105.) 26th December, 1S65 (No. 112.) 33 ie 26th December. 1865 (No. 113.) 35 17 35

SCHEDULE.

Number in Series. Date and Number. Subject. Page, 23 .18 19 20 21 22 8th January, 1866 (No. 3.) 20th January, 1806 (No. 5.) 25th January, 1866 (No. 10.) 26th January, 1866 (No. 12.) 26th January, 1866 (No. 13.) 26th January, 1S66 (No. 14.) Enclosing letter from War Office respecting the reasons alleged for Brigadier-General AVaddy's delaying to effect the immediate punishment of the murderers of Kereti and Mr. Broughton In reply to Governor's Despatches No. 10S of 14th August, No. 116 of 13th September, and No. 122 of 5th October, relative to his disputes with Sir D. Cameron Transmits letter from tho Treasury respecting the amount to be contributed from Imperial funds towards the cost of the Steam Mail Service between Australia and New Zealand from the 1st November, 1865 ... Transmits correspondence with the Treasury on the subject of the receipt of Debentures for £500,000, as collateral security for the repayment of certain advances made by Her Majesty's Government to the Colony of New Zealand Acknowledges receipt of Despatches Nos. 136, 139, and 140, and expresses the adherence of Her Majesty's Government to their decision conveyed in former Despatches, relative to the immediate removal of the Troops from New Zealand Acknowledges receipt of Despatch No. 147, relative to arrangements made with Major-General Chute for the return of five Eegiments to England Transmits letter from the Treasury, conveying their Lordships' authority to make provision in the Parliamentary Estimates for a sum of £587 9s. 2d., due to the Colony for supplies to Imperial military convicts Transmits letter from the Admiralty on the subject of a pecuniary allowance being made to the Officers of Her Majesty's ships employed on the New Zealand station... Acknowledges receipt of Despatch No. 149, and transmits letter from the Treasury, authorizing the privilege conceded to the New Zealand Mails to be temporarily extended to the Tahitian Mails ... Transmits correspondence with the Northern Association of New Zealand, in relation to the Petitions praying for a separate Government for the Province of Auckland ... Further instructions as to the discontinuance of advances for pay and rations to the Colonial Forces, drawn from the Commissariat chest Acknowledges receipt of Governors Despatches Nos. 153, 154, 155, 156, 157, 158, 161, 163 Acknowledges receipt of Governor's Despatch No. 15 36 86 37 37 39 39 24 31st January, 1866 (No. 15.) 25 5th February, 1866 (No. 18.) 40 26 23rd February, 1866 (No. 23.) 41 27 24th February, 1866 (No. 24.) 12 12 28 26th February, 1866 (No. 25.) 29 26th February, 1866 (No. 27.) 26th March, 1866 (No. 30.) 26th March, 1866 (No. 32.) 48 30 43 44 31 32 33 26th March, 1866 (No. 33.) 26th March, 1866 (No. 34.) Amount due to Imperial Government. Forwards letter from the Lords Commissioners of the Treasury, recommending that some person should be appointed on behalf of the Colony to examine the accounts with CommissaryGeneral Jones, in order that some definite agreement may be arrived at as to tho precise liabilities incurred by the Colony In reply to Governor's Despatch No. 2, relative to differences existing between himself and Sir D. Cameron in respect of the capture of the AVeraroa Pa Acknowledges receipt of Governor's Despatches Nos. 10 and 14. Expresses satisfaction at the successful result of the operations carried on by Major-General Chute on the AVest Coast, and contains further remarks on the removal of the Troops from the Colony ... Acknowledges receipt of Governor's Despatch No. 1, and prohibits all advances of pay and rations for the future Transmits correspondence with the War Office respecting the withdrawal of the Company of Eoyal Engineers now serving in New Zealand ... In reply to Governor's Despatch No. 7, transmitting a Petition from the Auckland Provincial Council, praying that the Northern portion of the Islands of New Zealand may be constituted a separate Colony ... Acknowledges receipt of Governor's Despatches Nos. 165 and 166 ... 44 15 34 35 26th March, 1866 (No. 35.) 26th March, 1866 (No. 36.) 15 46 17 36 26th March, 1866 (No. 37.) 37 26th March, 1866 (No. 39.) 17 4

SCHEDULE.

Number IN Series. Date and Number. Subject. Page. 38 17th April, 1866 (No. 42.) 20th April, 1866 (No. 44.) Acknowledges receipt of Governor's Despatch No. 19 . ... 49 39 40 11 42 43 44 15 16 24th April, 1866 (No. 46.) 26th April, 1866 (No. 48.) 26th April, 1866 (No. 49.) 26th April, 1866 (No. 52.) 26th April, 1866 (No. 53.) 26th April, 1866 (No. 54.) 19th May, 1866 (No. 56.) Acknowledging receipt of Governor's Despatch No. 23, and exjiressing concurrence in decision arrived at regarding the murderers of Mr. Volkner and Mr. Fulloon In reply to Governor's Despatch No. 5, relative to the failures of P. and 0. Co. to fulfil their contract, and forwarding letter from the Lords Commissioners of the Treasury on the subject Eeferring to dispute between Governor Grey and General Cameron, and expressing a desire to put an end to the controversy ... In reply to Governor's Despatch No. 24, reporting successful termination of General Chute's operations on tbe AVest Coast Transmitting Letters from the Treasury covering copy of instructions to Commissary-General Jones relative to interest on advances for the service of the Colony Acknowledging receipt of Despatch No. 20, forwarding copies of Letters by Sir W. Martin on Native affairs ... Eeviewing certain Acts of the Assembly relating to Native affairs. Transmitting Order in Council confirming "An Act to enable Provincial Legislatures to make laws affecting Public Eoads and AVatercourses''... Transmitting further Letter from London Committee of Northern Association, and the answer returned thereto Acknowledging receipt of Despatch No. 25, enclosing letter of Eotorua and Taupo chiefs, requesting the Governor to visit their country Transmitting further Letter from London Committee of Northern Association, together with copy of the reply... Acknowledging receipt of Despatch No. 31, relative to visits made by the Governor to several places in the Northern Island ... ... ... ... ... ..'. Transmitting Correspondence with the AVar Office respecting amount of Force to be stationed in New Zealand ... Intimating that Her Majesty will not be advised to disallow certain Acts of the Assembly Intimating that Her Majesty will not be advised to disallow certain Acts of the AssemblyIntimating that Her Majesty will not be advised to disallow " The Panama Mail Service Act Amendment Act, 1865" Acknowledging receipt of Governor's Despatches Nos. 42, 43, and 45, relative to matters of Account between the Colonial and Imperial Treasuries... 49 19 50 50 51 52 52 56 47 21st May, 1866 (No. 57.) 24th Mav, 1866 (No. 58.) 48 56 49 59 50 6th June, 1866 (No. 63.) 20th June, 1866 (No. 65.) 59 51 60 52 53 25th June, 1866 (No. 68.) 25th June, 1866 (No. 69.) 24th July, 1866 (No. 3.) 25th July, 1866 (No. 5.) 26th July, 1866 (No. 6.) 60 62 64 54 65 55 65

3

A.—No. 1

DESPATCHES FROM THE SECRETARY OF STATE TO THE GOVERNOR OF NEW ZEALAND.

No. 1. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 65.) Downing Street, 22nd August, 1865. SIR, — (Eeceived at Wellington, October, 1865.) With reference to my Despatch No. 44, of the 24th June last, I transmit to you a copy of a further letter from the War Office, with a Statement of the Liabilities of the New Zealand Government to the Imperial Treasury, on the 31st October last. The gross amount you will see is stated to be £641,260 Is. 7d., and this amount, of course, is exclusive of any further advances which, on your application, have been made for the payment of the Militia, and-of the sums that may be due on account of the continued issue of stores by the Commissariat for the Colonial Service. I trust, however, that any such advances will have been replaced by the Colonial Government. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

August 7, 1865.

Enclosure in No. 1. Sir E. Lugaed, to the Under Secretary, Colonial Office. Sir,— War Office, 7th August, 1865. I am directed by the Secretary of State for War to transmit to you to be laid before Mr. Secretary Cardwell the accompanying copy of a letter from the Senior Commissariat Officer in New Zealand, together with the Statement therein enclosed, showing the amount of the liabilities of that Colony to the Imperial Treasury on the 31st October last. I have, &c, The Under Secretary of State, &c, &c, &c, Edward A. Lugaed. Colonial Office. Sub-Enclosure to Enclosure in No. 1. (No. 1634.) Commissary-General Jones, to the Under Secretary for War. Sir, — Commissariat, New Zealand, Auckland, 26th April, 1865. I do myself the honor to transmit for the information of the Secretary of State for War, a Statement showing the amount of the liabilities of this Colony to the Imperial Treasury on the 31st October last, the date to which the charge for supplies issued to the Colonial troops has been rendered. I have, &c, H. Stanley Jones, The Under Secretary of State for War. Commissary-General. STATEMENT of Claims by the Imperial Treasury against the Colonial Government of New Zealand, to 31st October, 1864. Service. Amount. Total. £ s. d. £ s. d. Amount reported in Controller's letter No. 1460, of 4th October, 1864 561,354 15 2 Cost of Supplies to Colonial Forces. April, 1864 ...... 9,766 9 0 May ....... 9,083 4 1 June ....... 9,925 11 6 July ....... 13,992 19 2 August ....... 11,639 8 1 September,, ...... 12,648 14 4 October „...:.. 12,912 16 7 79,969 2 9 1

April 26, 1865.

£641,260 Is. 7d.

A.—No. 1

4

DESPATCHES PROM THE SECRETARY OF STATE

Seevice. Amount. Total. £ s. d. £ s. d. Amount of claim by Military Store Department, on account of stores supplied at Sydney, for gun-boat "Waikato" . . . 14115 11 14115 11 641,465 13 10 Deduct. Value of overcharges— vide W. O. queries from Ist May to 31st October, 1863 ..... 205 12 3 Gross Amount . £641,260 1 7 Commissariat, New Zealand, H. Stanley Jones, Auckland, 26th April, 1865. Commissariat-General.

No. 2. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 76.) Downing Street, 22nd September, 1865. SIR, — (Eeceived at Wellington, Bth December, 1865.) I have received from Earl de Grey, and forward to you, the enclosed Despatch from General Cameron respecting the purchase at Waitotara, and request you will have the goodness to furnish me with your report upon the subject of that purchase. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

July 7, 1865

Enclosure in No. 2. Lieut.-General Sir D. A. Cameron, to the Secretary or State foe Wae. (No. 136.) My Lord, — Head Quarters, Auckland, 7th July, 1865. I have the honor to forward to your Lordship a copy of a letter from Sir George Grey, dated 9th ultimo, and copy of my reply thereto, relative to a remark made by me in a private note to His Excellency on the subject of the purchase of the Waitotara block. But for the correspondence which Sir George Grey himself has originated, I should not have thought it necessary to trouble your Lordship on such a subject, but I now think it right to communicate to you the account of the purchase of the Waitotara block I received at Whanganui soon after the commencement of military operations in that district. Until recently the Kai-iwi formed the northern and eastern boundaries of the settlement of Whanganui, though as far back as the year 1859 negotiations had been opened with the Natives, for the purchase of the land lying between the Kai-iwi and Waitotara Eivers which is called the Waitotara Block. In the first agreement for the purchase of the block, in which Mr. McLean acted on behalf of the Government, the Natives reserved certain portions for their own use, which was agreed to on behalf of the Government, and £500 was paid to the Natives as earnest money. Before, however, the purchase was completed, objections were made by the agent of the Government to the large extent of the Native reserves, though they had been clearly defined when the money was paid on account, in consequence of which tho Natives brought in the £500 to Whanganui, desiring to return it and be off the bargain ; but this was declined by the Government Agent. In November, IS6O, after the war had broken out at Taranaki, Colonel Browne, theu Governor of the Colony, very properly put a stop to further negotiations on account of the unsettled state of the district. No further steps were taken in the matter until September, 1862, when Dr. Featherston, Superintendent of the Province, in treaty with a Chief named Eio, and another Chief, made a second agreement with certain Natives, by which the extent of the reserves was reduced, but without the consent of some of the Natives who had signed the first agreement. (The names of the Natives who signed each agreement are given in the papers which have been published on the subject in the Blue Book, which I herewith enclose.) The purchase of the block was finally completed by Dr. Featherston in July, 1863, after the commencement of hostilities at Taranaki, and when the greater part of the Northern Island was in a state of insurrection. The land was then hurriedly sold, without the usual notice by advertisement, to a few speculators in Wellington, at ten shillings an acre, —the sum realised being £13,000, the amount paid to tho Natives being £2,500. Hare Tipene and other Chiefs protested against the sale at the time, and gave warning that they would oppose by force any attempt on our part to occupy the reserved land. The Government, anticipating opposition to the occupation of the block, commenced a road from Whanganui to the Waitotara, with the object of facilitating the military operations which they foresaw would result from the disputes about the purchase of the iand. To the construction of this road the Natives made no serious opposition until it reached the boundary of a section of the land reserved by

June 9, 1865. Juno 12, 1865,

A.—No. 1

TO THE GOVERNOR OF NEW ZEALAND.

5

the Natives under the first agreement, and known as Hare Tipene's Eeserve. In it the Weraroa Pa was constructed as a protest against the further continuance of the road, and on its border the village of Nukumaru is situated. It was not until the troops entered this village that their advance was opposed by the Natives, and on that occasion a severe engagement ensued between them. Previous to this, on the 20th January, after large reinforcements had arrived at Whanganui, and when the Natives saw that hostilities were inevitable, they put the Chief Eio to death as a punishment for the prominent part he had taken in the sale of the Waitotara Block, without the authority of all the owners. A murder of this kind is so unusual a measure for the Natives to resort to, that it may be inferred from it that they had some valid grounds for their opposition to the sale of the land. Moreover, the Waitotara Natives had always been a loyal tribe, and well disposed towards the settlers, and it was a very unwise measure to take forcible possession of the land after they had so strongly protested against it, until some inquiry into the particulars of the purchase had been instituted. It was in riding into Whanganui, a day or two after the engagement at Nukumaru, that I received the above account, the truth or falsehood of which I had no means of ascertaining ; but my informant was a very respectable settler who had been a long time in the country, and appeared well acquainted with the history of the transaction. It is not surprising that I should have alluded to the subject at the time in my private correspondence with the Governor, but it is a matter of some surprise that instead of formally referring it to his Eesponsible Advisers, as appears by his letter of the 9th June, His Excellency did not at once satisfy himself regarding the merits of a question which so immediately affected the prolongation of the war; and this is the more strange as, if the account I received be correct, the purchase of the Waitotara Block was a very similar proceeding to that of the Waitara, which Sir George had so severely condemned. I have, &c, D. A. Cameeon, The Eight Hon. the Secretary of State for War, Lieut.-General. War Office, London. Sub-Enclosures to Enclosure in No. 2. His Excellency the Governor to Lieut.-General Sir D. A. Cameron. Sir, — Government House, Auckland, 9th June, 1865. In a private letter to me, dated the 28th January last, you wrote to me as follows : — " Since I have been in this part of the world, I have made inquiries about the purchase of the Waitotara Block, and have reason to believe that it was a more iniquitous job than that of the Waitara Block. I am not surprised that the Natives have opposed our road making. The Government at home ought to be made acquainted with the true history of the business." Upon the receipt of your letter, I felt that I ought not to rest under the imputation of holding back any information from Her Majesty's Government; I therefore immediately requested my Eesponsible Advisers to appoint a Commission to inquire into any facts which rendered it probable that the purchase of the Waitotara Block was an " iniquitous job." They inform me that they have made all the inquiry they can, and find no grounds whatever for thinking that the purchase of the Waitotora Block was a job ; that they are most anxious to appoint a perfectly independent Commission to examine into any complaint in regard to the purchase of this block of laud, but that they have no such complaints before them, and do not know what points they should direct the Commission to inquire into. As I am very anxious to do justice in this matter, to do my duty to the Home Government, and to keep nothing back from them of which they should be informed, I should feel very much obliged to you if you would inform me of the nature of the inquiry you made about the purchase of the Waitotara Block, what are your reasons for believing that it is an iniquitous job, and upon whose information your opinions were founded. Immediately I am in possession of this information, a full inquiry shall be instituted into the whole matter, and ample justice shall be done, as the state of the country will now, I believe, shortly permit of such proceedings being carried out. I have, &c, The Hon. Lieut.-General Sir D. A. Cameron, X.C.8., G. Grey. Head Quarters. Lieut.-General Sir D. A. Cameron to His Excellency the Governor. Sir, — Head Quarters, Auckland, 12th June, 1865. I have the honor to acknowledge the receipt of your Excellency's letter of the 9th instant, relative to a remark in a private letter I addressed to you on the 28th January last. It is no part of my duty to collect information for your Excellency on such a subject as the purchase of the Waitotara Block, regarding which you have ample means of obtaining all the information you require, and I therefore decline entering into any correspondence with your Excellency on the subject. I will now, however, make Her Majesty's Government fully acquainted with the information on which the opinion expressed in my private letter of the 28th January was founded. I have, &c, D. A. Cameron, His Excellency Sir George Grey, K.C.B. Lieut.-General. Extract from Letter from Chief Land Purchase Commissioner to the Hon. the Colonial Treasurer. Sir,— * Napier, 25th May, 1859. An instalment of £500 has been paid on account of a block of land containing about 30,000 acres, offered for sale by the Ngurauru Nat Ives at Waitotara. I found it necessary to make this

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advance with some degree of promptitude, and before survey, as great exertions were being made by the Ngatiruanui Natives to resist the sale, aud have the land handed over to Potatou. I obtained from the Provincial Government the assistance of Mr. Porter, their surveyor, to survey the external boundaries j Mr. Henry Halse was to remain with him until the work was fairly in operation, and as it appeared that Mr. Halse's services would shortly be again required at Taranaki, I employed Mr. Samuel Deigbton, at a salary of 10s. a day, to act as interpreter, and assist Mr. Porter while the work lasts. The Hon. the Colonial Treasurer, &c, I have, &c, Auckland. Donald McLean. [translation.] We have received this 11th day of May, 1859, five hundred pounds (£500), being the first instalment for Waitotara. We are to receive the balance for the land when the survey is completed and the following boundaries have been marked off, —Kai-iwi, thence inland as far as Waitotara. Our having received the money is a guarantee of the cession of this land to the Government of New Zealand. Iv token of our agreement we have hereunto subscribed our names : (Signed) Aperahama Parea, (Signed) Eerhana x Terakuku, Hare x Tipene, „ Pehimana rf Kartana, Piripi x Poura, „ Ihaia x Te Kokoiti, Horonapera x, „ Heremaia x Torunga, „ " Eeupene x, „ Nohono xTu Te Kounku, „ Hi Katene x Te Kiuhi, „ Motuarama x, „ Aperaneko x, „ Apera x Parea. Witnesses to Signatures — (Signed) Edward Thomas Broughton, „ Alex. Cashas, „ Edward Lewes, „ Henry Halse, Assistant Native Secretary. Mr. S. Deighton to the Chief Land Purchase Commissioner. Sir, — Whanganui, Ist February, 1860. I have just returned from Waitotara, where I have been for the last week or so with Mr. Stewart. lam sorry to say that the Maoris are asking for much larger reserves than I had any idea they would have done ; but I think I can manage them all, with the exception of one which is so extravagantly large, that I could not let it pass without referring to you. It extends from apa called Perekama, being bounded on the inland side by a stream called Ohie, and on the other side by the Waitotara Eiver, taking, in fact, the whole of the river frontage up to the boundary line at Karewarewa, probably about five miles. I told the Natives that they should have reserves where their pas were situated, but I could not think of letting them have the whole block. They are very stubborn about it at present, but a letter from you would do a great deal of good. I have explained to them that I am simply acting under your instructions, and that whatever I did would be sanctioned by you. Hare Tipene and Te Kepa have told them the same. lam now commencing the other reserves, leaving that at Perekama an open question till I hear from you, which I hope will be as soon as possible. In the meantime I shall write now and then, and let you know how affairs are progressing. I am sorry to say that a great deal of mischief has been done by some foolish meddling people informing the Natives that they have only to receive £500, in addition to what they have already got. Perhaps it would be as well if you alluded to the report in your letter to disabuse them of the idea. Donald McLean, Esq., I have, &c, Chief Land Purchase Commissioner. S. Deighton. The Assistant Native Secretary to Mr. S. Deighton. Sir,— Native Secretary's Office, Auckland, 20th, March 1860. I have the honor to acknowledge the receipt of your letter of the Ist ultimo, reporting as to the reserves which the Natives wish to be made in the Waitotara Block, and to inform you that it has been referred to Mr. Commissioner McLean for his information. I have, &c, Thos. Henry Smith, Mr. S. Deighton, Whanganui. Assistant Native Secretary. Mr. S. Deighton to Chief Land Purchase Commissioner. Sir,— Wanganui, 28th April, 1860. I beg to enclose a statement, from Mr. Stewart, of the quantity of land at Waitotara, and the description of the same. Aropeta's reserve at Kai-iwi (as I mentioned before) will, I believe, be sold when this purchase is concluded, and Piripi's land at Pakaraka is held back for the present for the same reason. I also enclose a letter from Te Mutumutu "Topia" for His Excellency, which he requested me to forward. I beg to state that according to your instructions I proceeded to Waitotara, and have been amongst them a great deal since; their impression was that the Europeans were hostile to them, but I think I have done away with that in a great measure, by going amongst them and inducing them to come to town as often as possible, when they might see that nothing wrong was in contemplation against any of the friendly disposed Natives. I also went to Eangitikei, and attended a large meeting at Parewanui at which Mr. Taylor and Mr. Searancke were present. The Natives about

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there are, I am sure, quite friendly, but have been sadly gulled and frightened by those absurd reports about the erection of barracks in different parts of the country, and sending soldiers to the outlying districts, and so forth. I took the opportunity of being at Eangitikei to go to the different pas on that river, and with the exceptions of a few quarrels among themselves about land, they appear to be quite quiet and well disposed. The general impression among the Natives of the whole of the Whanganui District, I think is, that as long as the war is against Wiremu Kingi about the land at the Waitara, and against the Ngatiruanuis (with whom there is no sympathy, on account of the murders), aud does not merge into the King movement, there is no cause whatever of any fear of an outbreak in these parts. I don't know whether Mr. Searancke's opinions coincide with mine on this subject, but as I have been in constant communication with the Natives for some time past, aud as they place some faith in me, I think I am not wrong in stating that this information may be relied upon. The settlers here have enrolled themselves into a Volunteer Corps, and I believe the Militia is also to be called out. I did not intend going at first, thinking that my presence might be required elsewhere; but on second thoughts I altered my opinion, as I should be better able to explain to the Maoris the cause of the enrolment, and, by being with them as much as possible, to do away with any fears on their parts, as these affairs are always exaggerated. There will be a meeting this evening to appoint officers, and I believe it is the intention of the settlers to appoint me as one of them. I explained the same to Hare Tipene yesterday, who seems very much pleased with it, on the grounds just mentioned by me. Of course I shall take every opportunity of being with the Natives, and endeavour to keep everything upon as friendly a footing as possible ; and I think more good is done in this way than by calling formal meetings and stating your opinions at them, as they are more inclined to listen to a little quiet talk, and will reason with you better than when they are excited. The Waitotara Natives held a meeting the other day about the price of the land. They would not fix any price, but want it to be paid for by the acre. I told them I was sure you would not agree to that, but that I would write and inform you of their request. I did not enter more than I could help into the affair, on account of the disturbed state of the country, and thinking you might wish to postpone the payment till a more fitting time. You will, however, I suppose, let me know whether these are your intentions. I have, &c, D. McLean, Esq., S. Deighton. Chief Land Purchase Commissioner, Taranaki. > Mr. John P. Stewart to Mr. S. Deighton. Sir,— Whanganui, 28th April, 1860. For your information, in connection with the Waitotara Block of Land, I subjoin the following: — The Native Eeserves retained on the bank of the Waitotara Eiver are four, viz. ; — a. .R. p. 1. Atlhupuku . . . . . . . . 29 0 0 2. Atlhaipo . . . . . . . . 201 1 0 3. At Perekamu (the river frontage of which has not been surveyed) about 925 0 0 4. AtAuroa . . . . . . . . . 137 0 0 The other Eeserves are — 5. At Manene. . . . . . . . . 58 1 0 6. At Nukumuru ........ 1223 0 0 7. At Piripi's Eeserve and the adjoining Eeserve at Pakaraku . . 4348 0 0 8. At the Okehu Stream . . . . . . . 380 0 0 Total . . .x. . 7301 2 0 The land in these Eeserves is mostly of a valuable quality. The whole of the land upon the Whanganui side of the Okehu Stream being also retained, there are left in the portion now offered for sale 24,900 acres, of which, however, 7,500 acres consist of sand hills of little value, they being nearly barren, with patches of scrub and toe-toe, Ac., only here and there. This leaves 17,400 acres whose value is much lessened by the occurrence of the aforegoing Eeserves in different portions of the block, destroying in a great measure its unity. Of this quantity more than one-half is open fern land of a good description, the remainder being bush land, the timber upon which is not of much value, there being little of it fit for sawing. The soil of both the open and the bush land is of a very superior description in general, but the portion of the open land adjoining the sand hills and the coast line, having a light sandy soil, is better adapted for grazing purposes than for cultivation. I have, &c., John P. Stewart, S. Deighton, Esq., Whanganui. Surveyor, Native Land Purchase Department. The Chief Land Purchase Commissioner to Mr. S. Deighton. Sir, —i Native Land Purchase Department, Auckland, 14th November, 1860. In reply to your letter of the 28th April last, enclosing a statement of the quantity and description of land at Waitotara, by Mr. Stewart, I have the honor, by direction of His Excellency the Governor, to inform you that it is not intended to take any steps in reference to the pending negotiations at Waitotara during the present unsettled state of the district. I have, <fee, Donald McLean, S. Deighton, Esq., Whanganui. Chief Commissioner. 2

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His Honor I. E. Featherston, to the Hon. Eeader Wood. Sir, —■ Superintendent's Office, Wellington, 4th September, 1862. I have the honor to request that you will be pleased to authorize an advance to me out of the Land Purchase Loan of the sum of two thousand pounds, to complete the purchase of the Waitotara Block ; and of the further sum of one thousand pounds to complete the purchase of the various^blocks in the Wairarapa, and to defray the expenses of the necessary surveys. I have, &c, The Hon. the Colonial Treasurer, I. E. Featherston, Superintendent, Auckland. Land Purchase Commissioner. The Hon. Eeader Wood to Mr. Carkeek. Sir,— 14th September, 1862. Will you make the necessary advance to Dr. Featherston out of the balance of the Land Purchase Loan still to the credit of the Province of Wellington. I have, <fee, Eeader Wood. Extract from a Letter —His Honor I. E. Featherston, to the Hon. Alfred Domett, dated 7th July, 1863. You are aware that negotiations have been pending for some years for the purchase of the Waitotara Block. I am happy to inform you that the purchase was completed on the 4th instant, when I paid the final instalment of £2000. There are, of course, some who not only deem it impolitic to pay such a large sum at present to the Natives, but openly declare that they will expend the whole of it on the munitions of war. Previous to my handing it over, Piripi and Eio; the two Chiefs authorized by the sellers to receive and distribute it, intimated to the meeting (at which some fifty were present) that they did not intend to touch it for some considerable time, until they knew what had become of their friends who had gone to Taranaki. This announcement met with a most hearty response from all the Natives, with the exception of two or three, who would not be entitled to more than a few pounds. I then took Piripi and Eio over to the Bank, and gave them the £2000. They immediately paid me back £100, for two hundred acres which I had agreed they should be allowed to purchase; and then, after considerable higgling with the Manager about tho rate of interest, they took a deposit receipt for £1900 (made out in their own names) for three months certain ; intimating that in all probability they would not want the money for six months. I think you will agree with me that this fact speaks volumes, and is worth any number of official reports, as to the state of Native feeling in this district. The Settlers cordially acknowledge that the acquisition of this block adds very materially to the security of the Settlements. [translation.] Deed of Purchase of the Waitotara Bloce. This Deed, written on this 4th day of July, in the year of our Lord, 1863, is a full and final sale, conveyance, and surrender by us, the Chiefs and people of the Tribe Ngarawue, whose names are hereunto subscribed, and witnesseth that on behalf of ourselves, our relations and descendants, we have, by signing this Deed, parted with and for ever transferred unto Victoria, Queen of England, Her Heirs, the Kings and Queens who may succeed Her, and Her and their Assigns for ever, in consideration of the sum of two thousand five hundred pounds (£2500) agreed to be paid to us ; of which sum of two thousand five hundred pounds (£2500), five hundred pounds (£500) was paid us by Mr. D. McLean, on the eleventh day of May, 1859, and the balance of two thousand pounds has been agreed to be paid to us by Isaac Earl Featherston, Land Purchase Commissioner (on the due execution of the present deed) all that piece of land situated between the Okehu stream and the Waitotara Eiver, the boundaries whereof are set forth at the foot of this Deed, and a plan of which land is planned on the back of this Deed, with its rivers, trees, minerals, lakes, streams, waters, and all appertaining to the said land, or beneath the surface of the said land, and all our right, title, claims and interests therein to hold to Queen Victoria, Her Heirs and Assigns, as a lasting possession, absolutely and for ever. And in testimony of our consent to all the conditions of this Deed we have hereunto subscribed our names and marks; and some of us have also signed our names on the plan on the back of this Deed. And in testimony of the consent of the Queen of England, on Her part, to all the conditions of this Deed, the name of Isaac Earl Featherston, Land Purchase Commissioner, is hereunto subscribed, and also on the plan. These are the boundaries of the land sold by us : — The Southern boundary is the sea, from the mouth of the Okeku to the mouth of the Waitotara Eiver ; the North-western boundary is the Waitotara Eiver, from its mouth to the commencement of Porter's Line at Karewarewa; the Northern boundary is Porter's Line, from Karewarewa to the Okehu Eiver ; and the Eastern boundary is the Okehu Eiver, from Porter's Line to the sea. Those portions of land colored red on the map on the back of this Deed are not included in the present sale. The boundaries of the portions of land remaining sacred to us are as follows :■ — 1. The first is called Okehu, situate on the banks of the Eiver Okehu, and estimated to contain (380) three hundred and eighty acres, surveyed by Mr. Stewart, assisted by Te Peira; their survey poles are also erected. 2. The second, named Pukaraka and Puke Ngaio. The upper boundary of this piece of land is Mr. Porter's Line. The lower boundary was surveyed by Mr. Porter, assisted by Piripi and others. The side lines were surveyed by Mr. Stewart, with Piripi and others. The survey poles on one side were erected by Piripi and Hare; those on the South-eastern side were erected by Eihari and Motuarama. This block contains (3300) three thousand three hundred acres. This block was formerly of larger dimensions, but has now been reduced by Dr. Featherston. Mr. Porter and Piripi laid off the line, reducing it, viz., the lower boundary line. 3. The third, named Nukumaru. This block was surveyed by Mr. St (-wart, assisted by Hare and

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Himiona, and their survey poles are standing. The pole in the Lake (Waikato) was erected by Hetaraka. The block is estimated to contain (1223) one thousand two hundred and twenty-three acres. 4. Manueene was surveyed by Mr. Stewart, assisted by Piripi and Horopapera; their survey poles also are erected ; it contains (58) fifty-eight acres. 5. The fifth, named Maraetou, situate on the banks of the Waitotara Eiver, surveyed by Mr. Porter with Paremona and Hakaraia; they erected the survey poles. This piece is estimated to contain (29) twenty-nine acres. 6. The sixth, named Perekama, situated between the Waitotara and Ohie Eivers. Mr. Stewart, assisted by Hetaraka and Hare, surveyed this block and erected the poles on the Ohie side; Eio, Ihaka, and Hona erected the poles on the Waitotara side. It is estimated to contain (925) nine hundred and twenty-five acres. 7. The seventh, named Auroa. The boundaries of this block were surveyed by Mr. Stewart, assisted by Kereti and Tiritiu. Their survey poles are erected on the southern side. The Waitotara Eiver is the boundary towards the south-east. It contains (137) one hundred and thirty-seven acres. (Signed) Horopapera te Peka, (Signed) Wetu te Kiau, „ Hiatata Moramin, „ Heremia Terapahiku, „ Eimitirin Euai, „ Hapemana Te Onenuku, „ Ko te Peina Hura, „ Motu te Ika, ~ Ko Maka Taiapiti, „ Natuna, ~ Paramena x Tv Mauki, „ Werapiko x Taipuhi, ~ Hohepa Te Uri, „ Eeupena te Tamia, „ Neho Teka, „ Aperamiko Eangitakitia, „ Heremaia x Io Eangi, „ Heroria, „ Taimona x Tamainkui, „ Hoani x Meti, ~ Eora x Owenhuru, ~ Erana te Ao, „ Eio Henentarungi, „ Euihi x, „ Hori x Kingi Te Anana, „ Areti x Kohi, ~ Hori Kerei x, „ Te Naeroa, „ Pehira Eehun, ~ Wirihana Te Eaupo, ~ Timoti x Eehetakao, „ I. E. Featherston (Te Petitone) Witness to the signatures and marks on this Deed — (Signed) Charles W. Broughton. We two, the men appointed by all the Council of Waitotara and Wanganui to receive the payment for this land (i. c. Waitotara) do acknowledge the receipt, on this fourth of July, one thousand eight hundred and sixty-three (1863), of the sum of two thousand pounds (£2000), being the balance due to us for this land ; and the full consideration money expressed in the Deed on the other side, to be paid by I. E. Featherston to us on behalf of Her Majesty Queen Victoria. (Signed) Piripi Eaikawhatu, „ Eio Henearangi. Witness to the pay rment of the above-named two thousand pounds (£2OOO) — (Signed) Charles Wm. Broughton.

No. 3. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 77.) Downing Street, 23rd September, 1865. SIR, — - (Eeceived at Wellington, 26th December, 1865.) I have the honor to enclose to you a copy of the instructions which the Secretary of State for War is sending to New Zealand by the present mail. They are addressed to the Officer commanding Her Majesty's troops, as it is believed that General Cameron will have left the Colony on the receipt of the permission to do so, which was sent to him by the mail leaving London in April, in compliance with his own request. Her Majesty's Government desire that if you have not already done so, you will at once take every step which may be proper on your own part for enabling the Officer commanding the troops to give effect to his instructions with respect to the five Eegiments. They hope that with the concurrence of your Advisers, you will be enabled to do much more, and that the declared policy of the New Zealand Ministry will be carried into full and complete effect by the early withdrawal of the whole force. Your Ministry was formed upon the principle of the early withdrawal of Her Majesty's Troops from the Colony. That principle was accepted by yourself and by the Assembly. Her Majesty's Government cordially approved it. The Secretary of State for War forthwith issued instructions, which, so far from being repugnant to that approval, were directly in pursuance of it. They instructed General Cameron at once to withdraw five Eegiments, and if he shpuld learn

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from you that it was the desire of the Colonial Government yet further to diminish the force, to take measures for carrying that desire also into effect. The discretion left to General Cameron was so far from being absolute, that as it was correctly interpreted by himself, it would not have justified his retarding in any degree the immediate execution of his instructions. It was in deference only to your own authoritative protest that he reluctantly consented to the delay which has actually occurred. This circumstance was, I presume, known to your Ministers. lam unable therefore to explain, and you do not assist me to explain, their Minutes, forwarded to me in your separate Despatch. Some misunderstanding evidently prevailed at the time when those communications were addressed to you; and Ido not now discuss them, because I cannot but believe that I shall soon hear that that misunderstanding has been dispelled. You will take care that your Ministers and the Assembly clearly understand that there is no change in the views of Her Majesty's Government. Having accepted with cordial satisfaction the Eesolutions passed by the Assembly of New Zealand in December last, their desire is, that the policy embodied in those Eesolutions may be completely carried into effect. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 4. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 78.) Downing Street, 25th September, 1865. SIR,- — (Eeceived at Wellington, Bth December, 1865.) I have now received, and forward to you, the answer of the Secretary of State for War, to whom I communicated your Despatch of 23rd May, No. 73. Officers commanding Her Majesty's Troops in the Colonies are required to report to the Secretary of State for War —not through the Governor, and consequently through this Department —but directly ; and in the 195 th section of the Bules and Eegulations of Her Majesty's Colonial Service the following provision is made for cases in which those officers may think it incumbent upon them to make reports affecting the Governor of the Colony, or the orders given by him : — " The respective officers employed under the War Department are in all " cases, without exception, to give timely notice to Governors of any communi- " cations which they may intend to send home affecting such Governors, or the " orders given by them, so that Her Majesty's Government may be simul- " taneously made acquainted with the opinions of the Governors as well as those " of the officers in question on any matter on which it is requisite that the views " of both should be known." It is much to be regretted that this regulation was not observed by General Cameron, and that copies of the Despatches in question were not sent to you by him, before the Despatches themselves were sent to Earl de Grey. One of the mischievous consequences of this departure from the rules of the service on his part, probably has been that you, not unnaturally, have suspected that reports had been made by him unfavourable to yourself and your Ministers to a greater extent than you will find to have been the case. At the same time, however, I must observe, that the following Circular instruction was issued in 1858 by my predecessor in this office, viz.:— " When the Civil Governor of a Colony shall have occasion to report upon, " or bring under the consideration of the Secretary of State for the Colonies, " proposals involving military as well as civil considerations, or questions which " can only properly be decided by the Secretary of State for War, or with the " concurrence of the two Secretaries of State, the Governor will in that case " first communicate with the Officer commanding the Troops on such proposals "or questions; and having obtained that officer's opinion or observations " thereupon, he will transmit the same with his own report to the Secretary of " State."

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After informing the Governors of Colonies that corresponding instructions had been given by the Secretary of State for War to Officers commanding Her Majesty's Troops in the Colonies, my predecessor says: " Attention to these instructions will lead to promptitude in the decision " of questions of a mixed nature, and render much of the preliminary corres- " pondence, which now too often takes place, unnecessary." If as soon as you knew that in the opinion of the Pfficer commanding the Troops your measures respecting the confiscation of land would render the early withdrawal of any portion of the troops impossible, you had acted upon this instruction, your opinions might have been sent home several months ago, with those of General Cameron, and with your report upon his observations. Much of the mischief which has occurred in New Zealand might have been avoided, and Her Majesty's Government might have decided the difference of opinion between you, with full information, and with promptitude. I trust that by a careful attention to the regulations of the service that risk of evil consequences which you have yourself pointed out as likely to result from the communication of imperfect or erroneous information to Her Majesty's Government will in future be averted. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

Enclosure in No. 4. Sir E. Lugaed, to tho Under Secretary of State, Colonial Office. Sir— War Office, 20th September, 1865. I am directed by the Secretary of State for War to acknowledge the receipt of your letter of the 25th ultimo, enclosing the copy of a Despatch from Governor Sir George Grey, dated 23rd May 1865, No. 73. In that Despatch Sir George Grey appears to question the right of a General Officer in the position of Sir Duncan Cameron to furnish the Secretary of State for War with any information that he thinks may be useful to Her Majesty's Government, regarding the management of affairs in a Colony as far as they relate to the manner in which the troops are employed, unless the Despatches containing such information are forwarded through the Governor of the Colony. I am to request that you will inform Mr. Cardwell that after a careful consideration of the subject Lord de Grey is unable to acquiesce in the views entertained by Sir George Grey. It appears to His Lordship to be essential that a General Officer at the head of a large body of Her Majesty's troops engaged in operations in the field, and responsible to Her Majesty's Government both for the successful conduct of those operations and for the expenditure incurred on account of them, should communicate freely with the Secretary of State for War, under whose orders he acts, and should explain fully the grounds of his proceedings, and the results which he expects from them. In order to do this it will often be necessary to point out the military consequences of the measures taken by the Colonial authorities, and to state fully the manner in which they arc likely to affect the operations in the field, and the expenditure incurred for military purposes. In the case of the New Zealand war this necessity could not fail to arise, as Sir D. Cameron's operations, and the amount of force required for them, have all along been determined more by the extent of territory which the Colonial authorities have thought it advisable to occupy, than by the numbers of the rebel Natives in arms. A careful perusal of Sir Duncan Cameron's Despatches proves, in Lord de Grey's opinion, that he has not assumed to himself any latitude inconsistent with the high position which he fills; while a comparison of these Despatches with those of other General Officers in similar circumstances shows that they are not inconsistent with the usual practice of the Public Service. Sir D. Cameron has been entrusted with no unusual powers, either as regards his position in relation to the Governor, or in any other respect. He has tho same rights and the same duties as any other General Officer commanding a large body of Her Majesty's troops engaged in active operations in the field ; and Lord de Grey does not consider that it would be desirable to restrict his free communication with the Secretary of State for War, to whom he is responsible, or to require him to forward any portion of his correspondence through the Governor of the Colony who is not in communication with the Secretary of State for the War Department, and can receive no orders from him. Sir D. Cameron ought, however, in accordance with the Horse Guards circular letter, dated February, 1859, to have furnished the Governor with duplicates of any Despatches addressed by him to the Secretary of State for War other than those relating to discipline and military routine. Lord de Grey had no reason to suppose that Sir Duncan Cameron was unaware of this rule, and was not in the habit of acting upon it; but as it appears from the present correspondence, and especially from a letter received by the last mail from Sir Duncan Cameron, dated 4th July last, that he is not acquainted with the contents of the Horse Guards letter, his attention will be at once specially drawn to it, and he will be directed to conform to its provisions. Sir Duncan Cameron has already been requested by the mail of the 26th August last to furnish Sir George Grey with copies of certain Despatches therein referred to, together with any other Despatches bearing on the same subject which Sir Duncan Cameron may have addressed to Lord de Grey. 3

, Copy enclosed. I

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With respect to the private letter from Sir D. Cameron to Sir George Grey, a copy of which tho former forwarded to Lord de Grey, and which has given rise to the present unfortunate dispute, I am to remark that anon-official correspondence, which sprung, no doubt, from the requirements of the Public Service, has been maintained between the Governor and the General. When Sir D. Cameron forwarded a letter forming part of that correspondence to Lord de Grey, he at the same time at once informed the Governor that he had done so; and it appears to Lord de Grey, that if Sir George Grey objected to that step, or to any of the statements contained in the letter, his proper course was to address himself on the subject to the Secretary of State for the Colonies, and Lord de Grey is not of opinion that Sir D. Cameron's transmission of the letter to His Lordship rendered it necessary for Sir George Grey to make known to his Ministers the contents of the letter in question, or justified the publication in the Colonial newspapers of two Memoranda reflecting upon the conduct of the General Officer commanding Her Majesty's troops —measures which could not fail to be fraught with serious risk of injury to tho Public Service. I have, &c, The Under Secretary of State, Colonial Office. Edward Lugard. Sub-Enclosures to Enclosure in No. 4. (No. 131.) Lieut.-General Sir D. A. Cameron to the Secretary of State foe War. My Lord, — Head Quarters, Auckland, sth July, 1865. I have the honor to forward copies of a correspondence between Sir George Grey and myself, relative to my furnishing His Excellency with copies of my Despatches to your Lordship of January last. I beg to acquaint your Lordship that I declined to comply with His Excellency's request because the information required by Her Majesty's Government was expected from the Governor himself in April last, and I could not see what benefit to the Public Service was likely to result from my furnishing His Excellency with copies of Despatches written so long ago as January, and in regard to which his explanation could not reach the Government before September. On the other hand, the unpleasant relations existing between the Governor and myself, rendered it advisable that all occasion of unnecessary correspondence between us should be avoided. His Excellency, moreover, had asserted the right to be furnished with copies of my Despatches to your Lordship, and to communicate them to the Colonial Ministers; and after the Memoranda that had passed between them relative to my private letters, and which were printed in the public newspapers, it was impossible for me to forsee what improper use might also be made of my Despatches. Apart from these considerations, there was nothing, as your Lordship is aware, in the Despatches referred to which I had any reason to apprehend being made public. I have, &c, The Eight Hon. the Secretary of State for War, D. A. Cameron, War Office, London. Lieut.-General. Governor Sir G. Grey, X.C.8., to Lieut.-General Sir D. A. Cameron. SrR, — Government House, Auckland, Bth June, 1865. Mr. Cardwell, in his Despatch to me, (No. 20, of the 27th March), of which he transmitted a copy to you, states that he feels the more difficulty in giving me his opinion on the important question of safety because there appears to be a discrepancy between my Despatches and those which you have addressed to tho Secretary of State for War, from which it appears that I expect from you services which will render necessary the continued presence in New Zealand, if not indeed the increase, of the present force. I should feel very much obliged to you if you would supply me with copies of the Despatches to the Secretary of State for War, to which Mr. Cardwell alludes, that I may furnish the requisite explanations on this subject to Her Majesty's Government. I have, &c, The Hon. Lieut.-General Sir D. A. Cameron, X.C.8., &c. G. Grey. Lieut-General Sir D. A. Cameron to Governor Sir G. Grey, K.C.B. Sir, — Head Quarters, Auckland, 10th June, 1865. I have the honor to acknowledge the receipt of your Excellency's letter of the Bth instant, requesting me to furnish you with copies of my Despatches addressed to the Secretary of State for War in January last. I consider it unadvisable, under present circumstances, to comply with your Excellency's request; but I may add, for your Excellency's satisfaction, that those Despatches contained no information of which you were not in full possession at the time they were written. I have, Ac, D. A. Cameron, His Excellency Sir G. Grey, X.C.8., &c. Lieut.-General. Governor Sir G. Grey, X.C.8., to Lieut.-General Sir D. A. Cameron. Str, — Government House, Auckland, 10th June, 1865. In reply to your letter of this day's date, refusing to comply with my request to furnish me with copies of your Despatches to the Secretary of State for War, which led to the remarks made by the Secretary of State for the Colonies in his Despatch No. 20, of the 27th of March, I have the honor to state that it is of course quite clear that they could have contained no information of which I was

A.—No. 1.

not in possession, but I have been required to furnish explanations regarding the statements made by you in those Despatches, which I am now unable to do. I can only leave it to Her Majesty's Government to determine as to whether you are justified in secretly writing to them that which has evidently created a wrong impression in their minds, and in now shrinking from giving me an opportunity of giving explanations regarding my proceedings which I have been called on to furnish, by refusing to acquaint me with the statements you did not hesitate to make, but dare not produce. I have, Ac, The Hon. Lieut.-General Sir D. A. Cameron, X.C.8., G. Grey. Head Quarters. Lieut.-General Sir D. A. Cameron to Governor Sir G. Grey, K.C.B. Sir, — Head Quarters, Auckland, 12th June, 1865. I have the honor to acknowledge the receipt of your Excellency's letter of the 10th instant, relative to my refusal to furnish you with copies of my Despatches to the Secretary of State for War, of January last. Looking at the spirit which has actuated your Excellency's proceedings towards me during the last three months, it is no matter of surprise or concern to me what construction your Excellency is pleased to put upon my actions ; but I have little doubt that the Secretary of State for War will approve of the reasons for which I have refused to comply with your request. I have, &c, His Excellency Sir G. Grey, K.C.B. &c. D. A. Cameron, Lieut.-General.

No. 5. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 79.) Downing Street, 26th September, 1865. SIR, — (Eeceived at Wellington, Bth December, 1865.) I have received from the Lords Commissioners of the Treasury, and from the War Department, the Despatch and letters noted in the margin, and now enclose copies of them to you. In my Despatch of 26th September, 1864, writing on the subject of the Guaranteed Loan, I stated to you that the clear intention of Parliament was that after the debts then due from the Colony to the Imperial Treasury should have been discharged no new ones should be incurred. When my attention was called to the recommencement of the system of advances, I instructed you to discontinue it. If indeed the advances had been merely temporary, for convenience of management and for economy, made on the credit of the Colonial Government, adjusted at the close of every month, and practically involving no addition to the debt, there would have been no necessity for me to object to them. But neither at that time nor now, though two mails have since arrived from New Zealand, have I had from you information from which I can conclude that such is the case. It would appear from your letter of 9th June that you contemplate that the assistance of the Commissariat will for some time be resorted to for the support of Military Settlers and friendly Natives; the advances are not limited to advances in kind, but have been extended to advances of cash, which, as Commissary-General Jones remarks, makes the power of the Colony to meet the accounts appear to him very problematical, since, if the money were available, there would be no necessity for cash advances to pay the Militia, and, so far as appears, the arrangement entered into for the monthly repayment of all supplies issued to the Colonial Eorces has been superseded by some other arrangement, made subsequently, of which no notification had reached the Commissary-General; I therefore cannot but agree with General Cameron that the question stands at present in a very unsatisfactory position, so far as it is known to me. Your Ministers evince a very just sense of their responsibility to the Assembly of New Zealand. Her Majesty's Government cannot be forgetful of the like responsibility under which they stand to the Imperial Parliament for the expenditure, or the advance, of the moneys of the United Kingdom. The Hmited power of making advances not expressly sanctioned by a special instruction from the Treasury Board, or by the Eegulations of Her Majesty's Military Service, which is given to officers in distant parts of the world by the Commissariat Eegulations, is

Treasury, 26_tl September, 1865. War^otrice724th August, 18G5. War~Offlee, 25th August, IS(>5. Sir D. Cameron, 7th July, 1865.

13

TO THE GOVERNOR OF NEW ZEALAND.

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DESPATCHES FROM THE SECRETARY OE STATE

14

given to be used only under circumstances of pressing and extraordinary emergency affecting the safety of the community, and must not be used except so far as the necessity thence arising may render absolutely inevitable. To draw upon the Military chest for the payment of the ordinary expenditure of the Colonial Eorces is not a case falling within this exception. Advances for any such purpose are not likely to be sanctioned at all by Her Majesty's Government; but if they were, it would be their manifest duty to obtain the previous sanction of the Imperial Parliament. I confidently anticipate that I shall promptly receive from you full information upon this subject; and in the meanwhile I must repeat the instruction given to you in my Despatch of 26th July (No. 54). I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

Enclosure 1 in No. 5. Geo. A. Hamilton, Esq., to Sir Frederic Eogers. Sir, — Treasury Chambers, 26th September, 1865. I am commanded by the Lords Commissioners of Her Majesty's Treasury to acquaint you, in reply to your letter of the 21st instant, on the subject of advances from the Treasury Chest in New Zealand on the application of the local Government, in which you request that an account of such advances may be furnished for the information of the Secretary of State, that they have caused the account herewith to be prepared showing the debt incurred by the Colony to the Imperial Government for advances of money and supplies up to the present time, so far as the same can at present be estimated. This debt to Imperial funds, amounting to the sum of £666,939, is irrespective of the old debt of £68,000, incurrred between 1847-8 and 1858-9, on account of the New Zealand Fencibles ; and it does not include any part of the large expenditure incurred for the protection of the Colony, which has been charged upon the grants of Parliament for Military and Naval Services, nor the contribution payable by the Colony for military protection. This debt of £666,939 may be divided as follows :— Ist. Cash advances to the Colonial authorities, in gross, avowedly for military purposes, but the application of which has been removed from the control of any public officer accountable to this Board or to the War Department . . £186,000 2nd. Pay, clothing, arms, ammunition, stores, and other expenses for Colonial Forces, &c, wholly chargeable upon Colonial funds ..... £480,939 £666,939 This sum represents moneys appropriated by Parliament to specific public purposes, which have been applied to uses not sanctioned by Parliament. These moneys should be made good before the close of the present financial year, to the departments from whose funds they have been withdrawn. My Lords request that you will acquaint Mr. Secretary Cardwell that the Commissary-General in charge of the Treasury Chest in New Zealand has informed this Board, by letter dated the 6th July, 1865, that money advances to the Colonial Government were then being made at the rate of £4,000 a month, that he believed that such advances would increase in amount, and that they would not be of short duration ; that the issue of rations had also been extended, and that there was every prospect of further demands ; that the promises of repayment on monthly accounts, of which assurance was given to the Commissary-General by Mr. Weld, in his letter of the 18th February, 1865, had not been fulfilled ; and that, notwithstanding the instructions sent to the Commissary-General by this Board, on the Bth October, 1864, that the debt of the Colony should not be increased by further advances, that debt was being augmented at the rate of £15,000 a month. My Lords consider that the power exercised by the Governor of New Zealand in thus using tho public money for purposes not sanctioned by the House of Commons, regardless of any inconvenience which the Home Government might experience by the disturbance of the financial arrangements of the year, submitted to and approved by Parliament, is open to such grave objections, that if Mr. Secretary Cardwell had not already informed them that he had instructed the Governor of New Zealand, by his Despatch of the 26th July, 1865, that these unauthorized advances from the Treasury chest must be discontinued, they would have felt it incumbent on them to urge the adoption of stringent measures for bringing them finally to a close, and for providing security against the recurrence of them. My Lords have transmitted a copy of this letter and of the enclosure to the Secretary of State for War, for his information. I have, &c, Sir Frederic Eogers, Bart., &c. Geo. A. Hamilton. Sub-Enclosure to Enclosure 1 in No. 5. An Account showing the Debt incurred by the ' Colony of New Zealand to the Imperial Government for advances of Money on Account of Military Expenditure, and for Military Supplies, up to September, 1865, so far as the same can at present (26th September, 1865,) be estimated.

TO THE GOVERNOR OF NEW ZEALAND.

15

A.-No. L

£ s. d. £ s. d 1. Casii Advances to the Colonial Authorities— On 20th August, 1863 12,000 0 0 „ 14th September, 1863 ...... 12,000 0 0 „ 9th October, 1863 12,000 0 0 „ 7th November, 1863 100,000 0 0 „ 29th December, 1863 50,000 0 0 188,000 0 ( N.B.—-Eepayment of these advances was promised ': within six months from the date of each advance." 2. Expenses incurred for Colonial Forcss, wholly cn.vrgeable upon colonial funds, up to 31st march, 1865, viz. :— Pay, &c, of Mounted Volunteers, of Maori Irregular Force, of Taranaki, Wanganui, and Hutt Militia . 67,699 0 0 Commissariat supplies ....... 185,621 0 0 Military stores 82,168 0 0 Hire of vessels 16,422 0 0 Eoad making 31,805 0 0 Field works and Colonial allowance to H.M. ships, <fee. 7,224 0 0 Add —Money advances to Colonial Government, issue of rations, <fee, at £15,000 a month, six months to September, 1865 90,000 0 0 480,939 0 C £666,939 0 C The above sum is exclusive of the old debt (about £68,000) in respect of advances for the New Zealand Fencibles.

Enclosure 2 in No. 5. Sir Edward Lugard to Sir Frederic Eogers. Sir,— War Office, 24th August, 1865. I am directed by the Secretary of State for War to transmit to you, for the information of Mr. Secretary Cardwell, the accompanying copy of a letter which was addressed to Governor Sir George Grey by Lieutenant-General Sir Duncan Cameron, on the sth June last, with its Enclosure, relative to the issues by the Commissariat Department of pay and rations to the Colonial Forces and Military Settlers in New Zealand. I have, &c, Sir Frederic Eogers, Bart., &c. Edward Lugard.

f ' Sess. Papers, 1865, i A. —No. 4, page 165.

Enclosure 3 in No. 5. Sir Edward Lugard to Sir Frederic Eogers. Sir,— War Office, 25th August, 1865. With reference to my letter of 21th instant, forwarding a copy of one addressed to the Governor of New Zealand by Lieutenant-General Sir D. A. Cameron, with its Enclosures, relative to the issue by the Commissariat Department of pay and rations to the local Forces and Military Settlers, I am directed by the Secretary of State for War to transmit to you, for the information of Mr. Secretary Cardwell, the accompanying copy of a previous correspondence which has been received from Sir Duncan Cameron on the subject. I have, &c, Sir F. Eogers, Bart., &c. Edward Lugard.

1 Seas. Papers, 1865, A.—No. 4, No. 103, page 3S j No. 103, page 39.

Enclosure 4 in No. 5. Lieutenant-General Sir D. A. Cameron to the Secretary of State for War. My Lord, — Head Quarters, Auckland, 7th July, 1865. With reference to my letter of the 7th ultimo (No. 177-65), I have the honor to forward for your Lordship's information copies of a further correspondence between His Excellency the Governor of New Zealand and myself on the subject of the existing issues of pay and rations to the Colonial Forces by the Commissariat Department. This correspondence will show your Lordship the difficulties which the Commissary-General and myself have to contend with, aud how necessary it is that we should receive explicit instructions on the subject. At present it is hardly possible for me to refuse assistance in money and rations to any extent the Governor of the Colony may think proper to demand, when I am informed by him that such refusal would not only be of disadvantage both to the Colony and the Imperial Government, but would probably involve the country in fresh disasters. I enclose two statements showing the number of Colonial Forces now receiving pay and rations from the Commissariat. With regard to rations, it was guaranteed by two of the Colonial Ministers that the accounts for those issued in the Province of Auckland (being more than three-fourths of the whole) should be paid for monthly, and the issues were continued on this condition. The Colonial Government, however, have failed to fulfil this guarantee, and I have brought the 4

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DESPATCHES FROM THE SECRETARY OF STATE

subject to the notice of the Governor in my letter of the 3rd instant, to which I have not yet received a reply ; but it will be seen from former correspondence that I can expect very little assistance from. His Excellency. I have, &c, The Eight Hon. the Secretary of State for War, D. A. Cameron, War Office, London. Lieutenant-General. Sub-Enclosure 1 to Enclosure 4 in No. 5. Governor Sir G. Grey. X.C.8., to Lieut.-General Sir D. A. Cameron. Sir, — Government House, Auckland, 9th June, 1865. I have the honor to acknowledge the receipt of your letter of the sth instant, forwarding thecopy of a letter from Commissary-General Jones, C.8., dated the 3rd of June. From this correspondence I gather that you propose to cancel all the existing authorities for the present issues of pay and rations by the Commissariat on account of the Colonial Government, from the first day of August next, with a view of reviewing in detail the various questions connected with each of such issues, and of seeing and judging of the necessity that exists for sanctioning or disallowing each, and that you believe that it will be an advantage to the Colony, as well as to the Imperial Government, that the whole subject of these issues should be carefully reviewed, and that a special application with full particulars be made for each case. In reply, I have the honor to state that I can see no advantage that would result to the Colony from a careful review, at the present time, of the whole subject of these issues. Tho Colony ias responsible for the cost incurred on account of them, and is to repay the amount. The case of every one of the issues which is being made was carefully considered by the Colonial Government before I applied to you to order such issue, and the Colonial Government is satisfied, in the case of each of these issues, that it is still necessary, or it would not allow that it should continue to be made. If you choose to cancel all the existing authorities for all present issues from the first of August next, with the intention of reviewing the various questions in detail, and of seeing and judging the necessity which exists for sanctioning or disallowing each one of them, I cannot prevent you from taking such a course, and the Colonial officers shall be instructed to afford you any information connected with these subjects for which you may ask. But I think it my duty to state why I think it would be disadvantageous to tho Colony, as well as to the Imperial Government, that you should at the present time follow the course you propose to adopt. There is now, within a few miles of the settlement of Wanganui, a post occupied by rebel Natives, of which they have been allowed, and are still allowed to retain undisturbed possession. They thus keep alive in the country the smouldering embers of insurrection, which may at any time burst out into a flame, and involve in serious disasters the settlements of Wanganui, Eangitikei, Manawatu, and the district of Wellington. The rebels who hold the Weraroa pa are connected with the fanatics on the East Coast. Their pa was the last point on the South-west Coast from which the party of fanatics bearing a head, who murdered Mr. Volkner, were sent upon their atrocious mission, and through their influence, which increases from their being allowed to remain undisturbed, the East Coast tribes may at any time be roused to revolt. At the present moment important negotiations are being carried on with the hitherto rebel Natives in this part of the Northern Island. These negotiations appear on the whole to be progressing favourably, but a very slight cause may yet disturb them and bring on renewed difficulties here. The question of the despatch of troops from the Colony is under consideration; until it has been decided what numbers of troops are to be sent home and the dates at which they are to leave the Colony, it will bo impossible to determine what positions are to be permanently occupied by Military Settlers or friendly Natives, who would for some time require the assistance of the Commissariat to meet the necessary issues for their support. Various positions, already taken up by Military Settlers and friendly Natives, and which will probably have to be permanently held, are now settling down into a state of peace and order ; and their occupants, finding that the requisite issues are regularly supplied to them, do their duty contentedly and well. Under these circumstances, to direct that all the present issues of pay and rations to the Colonial Government shall be cancelled from the first of August next, would, I fear, whilst it would attain na useful end, cause great want of confidence and alarm, unsettle many men's minds as to the permanency of anything the Government is doing, and probably involve the country in fresh disasters. My own opinion as to what should be done to meet the questions you have raised, is as follows :— The embers of revolt, which are still slumbering close to AVanganui, should be put out by the punishment and dispersion of the rebels who now occupy the Weraroa pa. The negotiations now in progress should be brought as speedily as practicable to a close : which, after the dispersion of the rebels in the neighbourhood of Wanganui, 1 believe could be done satisfactorily and permanently. Then, that it should be decided what Eegiments are to be sent home, and at what dates, to give effect to the reduction of troops which has been ordered. When this point has been settled, that it should then be determined what positions are to be permanently held by Military Settlers or friendly Natives, and which of these positions will have to depend upon the Commissariat for the issue of pay or rations, and that the necessity of each of such cases should be carefully considered. In this manner I think effect could be given to the intentions you have expressed, with due regard to the safety of the Colony. I beg that you will, as soon as you conveniently can, inform me what course you intend to pursue in reference to this subject, as it is one which involves the most serious considerations, and may require immediate action on my part. I have, &c, The Hon. Lieut.-General Sir D. A. Cameron, X.C.8., &c, &c. G. Geet.

TO THE GOVERNOR OF NEW ZEALAND.

17

A.-No. 1

Sub-Enclosure 2 to Enclosure 4 in No. 5. Lieut.-General Sir D. A. Cameron, to Governor Sir G. Grey, K.C.B. Sir, — Head Quarters, Auckland, 21st June, 1865. I have the honor to acknowledge the receipt of your Excellency's letter of the 9th instant, relative to the issues of pay and rations by the Commissariat on account of the Colonial Government, and having referred it to Commissary-General Jones, I herewith forward a copy of his letter for your Excellency's information. I cannot concur with your Excellency that an investigation of the account between the Imperial and Colonial Governments is superfluous because the Colonial Government are satisfied that all the present issues arc necessary, and because they are responsible for their cost; nor that such an investigation would be attended with danger in consequence of the occupation by the rebels of a position on the Waitotara Eiver. If, however, the continued occupation of that position by the rebels really involves all the serious consequences represented by your Excellency—which I am very far from believing—your Excellency must bo held responsible for them. For in the first place, the three best months of the year for operations in the field were lost in consequence of the postponement of hostilities by your Excellency until after the meeting of the General Assembly, a delay which would seem to have been unnecessary if you had at that time determined under any circumstances, and whoever your Eesponsible Advisers might be, to transfer the war to Wanganui, for the confiscation and occupation of territory ; and in the next place, your Excellency's instructions to occupy the sea coast between Taranaki aud Wanganui rendered an attack on the position impossible, unless I had immediately abandoned the posts established in pursuance of those instructions. It was not until the middle of May, after having more than once applied to your Excellency for instructions, and after having been informed by your Excellency in reply that the services of the regular troops were not likely to be required, that I received your sanction to abandon any of the posts ; but it was then too late. But for these circumstances the Weraroa position might ere now have been in our possession. As to the plan proposed by your Excellency, I have in previous communications sufficiently explained my opinion regarding it, and I will only add, that the commanding Eoyal Engineer, Colonel Mould, fully concurs with me, that a siege of the position is not advisable at this season of the year. All that can now be done is to make preparations so that no time may be lost as soon as the weather will admit of the operation being undertaken. Although nothing that your Excellency has stated in your letter is in my opinion sufficient reason for preventing the first proposal of Commissary-General Jones from being carried into effect; yet, as your Excellency is so disinclined to any inquiries being made into the present expenditure on account of pay and rations to the Colonial Forces, and as the question stands at present in a very unsatisfactory position, I think it best to adopt the course recommended by Commissary-General Jones, and to refer the whole subject for the instructions of the Secretary of State for War. In the meantime I have directed the Commissary-General to continue all present issues on the conditions stated in his letter. I have, &c, D. A. Cameron, His Excellency Sir George Grey, X.C.8., &c. Lieut.-General. Sub-Enclosure 3 to Enclosure 4 in No. 5. Commissary-General Jones to the Assistant Military Secretary, Auckland. Sir, — Commissariat, New Zealand, Auckland, 14th June, 1865. The Lieutenant-General Commanding having shown me the letter of His Excellency the Governor, dated 9th instnnt, on the subject of the proposal contained in my letter of the 3rd, to the effect that the whole question relating to the issues now being made on behalf of the Colonial Government should be reviewed in detail, and the Lieutenant-General Commanding having desired that I should report upon the several points in His Excellency the Governor's letter bearing upon this question. I have now the honor to submit as follows for the Lieutenant-General's consideration : That, as His Excellency so strongly objects to the steps proposed upon grounds of political expediency, the point be conceded to his wishes. I presume that the Colony can hereafter raise no objection as to the description of the persons drawing rations, or their numbers, as it has through His Excellency declined to enter into any investigation into the matter. The Colony having undertaken to pay monthly for all rations issued since tho Ist of March last, the objection to a continuance of these issues are far from as great as would otherwise be the case. The letters of Colonial Ministers state that the continuance of the issues by this Department will be of a temporary nature, and not likely to extend beyond a few months ; but I find from the concluding paragraph of His Excellency's letter that he contemplates, on the withdrawal of Her Majesty's Troops from posts now occupied by them, to replace them with Militia, Military Settlers, or friendly Natives, and to call upon this department to ration the Colonial Forces so placed. The assistance required from this department appears, therefore, more permanent than represented by Ministers. Upon a careful consideration of the whole bearings of this question, I am clearly of opinion that the subject stands in the most unsatisfactory position, and I would recommend that it be at once submitted for the consideration and instructions of the Secretary of State for War. In the interval, pending the receipt of those instructions, I would submit that no increase in the present numbers rationed should be permitted, unless upon special application representing the circumstances requiring such increase, and also that all issues on behalf of the Colony should cease in the event of a failure of immediate repayment of the cost of all supplies issued since Ist March last. The claims for that month were sent in to the Colonial Government yesterday.

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DESPATCHES PROM THE SECRETARY OP STATE

Another branch of this question I have the honor to bring under the consideration of the Lieutenant-General Commanding, is the recent appeal from the Colony for the Commissariat to advance money to pay Militia, Military Settlers, and friendly Natives at Wanganui and Tarauaki. In the application of the Defence Minister for these advances at Wanganui, forwarded by His Excellency in his letter of 22nd March last, there is no reference made to repayment, beyond the ambiguous expression—" As the Paymaster is not an officer of the Imperial Service, the Colonial " Government will be responsible for the moneys thus advanced." And in the application for advances at Taranaki only similar expressions are employed. Both these advances are represented to be merely of a temporary nature ; but as in the case of rations His Excellency in his letter appears to contemplate this department continuing to advance pay to Militia, Military Settlers, and friendly Natives, on the withdrawal of the Troops : The plain inference, therefore, is that this assistance will continue to be required for many months. As no intention is expressed of immediate repayment of these advances they are necessarily added to the debt of the Colony due to the Imperial Government, which recent instructions both from the Treasury and War Office directed should not be permitted. This question, therefore, is one that I consider should also be submitted for specific instructions from the Secretary of State for War. In order to obtain clear and distinct instructions upon the several points under consideration, the best course to be pursued would probably be to submit a series of questions for the consideration and decision of the Secretarj^ of State for War, and I now do myself the honor to enclose separately the questions which occur to me as those most calculated to draw forth the fullest and clearest instructions. I have, &c, The Assistant Millitary Secretary, H. Stanley Jones, Head Quarters, Auckland. Commissary-General. The following Questions are proposed to be submitted for the consideration of the Secretary of State for War with reference to the suggestion contained in my letter, No. 1000, of this date: —■ How far this Department is warranted, under existing circumstances, in issuing upon payment, rations to Colonial Militia, Military Settlers, and friendly Natives. . 1. When on active service, under the immediate command of the Lieutenant-General Commanding. 2. When on active service, not under the orders of the Lieutenant-General, but acting independently under Colonial command, or occupying posts in confiscated territory. 3. When struck off all pay and placed upon their lands, and, in fact, performing no military duty, but held in readiness when required for any active service. 4. If the families of such Colonial Forces, under any of the above three circumstances, may draw rations from the Commissariat, upon payment by the Colony ? 5. If the cost of all establishments, necessarily maintained at posts wholly occupied by Colonial Forces, for the sole purpose of rationing those forces, should be included in the charge against the Colony, as well as the establishment at Head Quarters, examining and compiling outpost Colonial accounts, and preparing tho charges against the Colony ? 6. If the debt due by the Colony to the Imperial Government should, under any circumstances whatever, be permitted to be increased, either by advances of money to pay Militia, Military Settlers, or friendly Natives, or in continuing to issue rations to those forces, should the full cost of the same not be repaid, on demand, into the Military Chest ? and if so — Under what special circumstances, the advances in money and issues of rations, may continue to be made and added to the claim against the Colony. I have, &c, Commissariat, New Zealand, H. Stanley Jones, Auckland, 14th June, 1865. Commissary-General. Sub-Enclosure 4 to Enclosure 4 in No. 5. The Hon. F. A. Weld to Commissary-General Jones. Sir, — Colonial Secretary's Office, Wellington, 18th February, 1865. I have addressed His Excellency the Governor direct on the subject of your letter, dated the 9th instant, to the Private Secretary, reporting the orders which you have given for the discontinuance, from the 28th of this month, of the issue, by the Commissariat, of rations to the Colonial Forces in the Province of Auckland; but as it is probable His Excellency may be absent from Auckland when that communication arrives, I have the honor to address to you this letter on the same subject. As serious embarrassment to the Public Service would ensue from this sudden change of the sj rstem of supplying the Colonial Forces through the Commmissariat, I have strongly to urge upon you the propriety of not carrying your orders into effect, especially as the guarantee which Ministers will give removes the alleged cause, namely, the prevention of further increase of the liabilities of this Colony to the Imperial Government. Ministers give their assurance, that for the future the Commissariat accounts for rationing the Colonial Forces in the Province of Auckland, shall be paid monthly, on presentation at the SubTreasury, Auckland. It is, however, desired that the arrangement for supplying the Colonial Forces with rations by the Commissariat should only be of a temporary character, pending the completion of permanent arrangements contemplated by the Colonial Government, and which it is hoped will take effect within a few months at the furthest. Ministers confidently rely upon your acceptance of this proposal, as the shortness of the notice you have given entirely precludes the Colonial Government from making the necessary arrangements. I have, &c, To Commissary-General Jones, C.8., &c. Fred. A. Weld.

TO THE GOVERNOR OP NEW ZEALAND.

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A.—No. 1

Sub-Enclosure 5 to Enclosure 4 in No. 5. Copy of a Memorandum by Mr. Atkinson. With reference to the letter from the Commissary-General of the 9th instant, His Excellency is respectfully requested to move the Lieutenant-General Commanding to continue the issue of rations to the Colonial Forces at present on active service, as it is quite impossible that the Colonial Government can provide, in a satisfactory manner, rations for so large a body of men on so short a notice. Ministers will guarantee immediate payment upon the presentation of the account by the CommissaryGeneral for any rations that may be issued. I have, &c, Taranaki, 22nd February, 1865. H. A. Atkinson.

Sub-Enclosure 6 to Enclosure 4 in No. 5. Lieutenant-General Sir D. A. Cameron to Governor Sir G. Grey, K.C.B. Sir, — Head Quarters, Auckland, 3rd July, 1865. I have the honor to forward for your Excellency's information the copy of a letter with its enclosures, received from Commissary-General Jones, from which you will see that the Colonial Government have failed to fulfil the guarantee given in their behalf by the Colonial Secretary and Minister for Colonial Defence, for the monthly payment to the Commissariat of the accounts for rations supplied to the Colonial Forces. On the 18th February, in reference to this subject, Mr. Weld writes to the Commissary-General as follows :— " Ministers give their assurance that for the future the Commissariat accounts for rationing the Colonial Forces shall be paid monthly on presentation at the Sub-Treasury, Auckland." On the 22nd February, in a memorandum addressed to your Excellency, Major Atkinson states : — " Ministers will guarantee immediate payment upon the presentation of the account by the Commis-sary-General for any rations that may be issued." The Sub-Treasurer at Auckland now acquaints the Commissary-General that he is " informed by the Colonial Treasurer that the arrangement referred to is understood to have been superseded by arrangements subsequently made." I need hardly inform your Excellency that no subsequent arrangements have been made which supersede the agreement entered into by the Commissary-General. On the contrary, tho last paragraph of my letter of the 21st ultimo to your Excellency shows that it was on tho faith of that agreement that I directed the continuance of all the present issues to the Colonial Forces. Under these circumstances I beg that your Excellency will call upon the Colonial Government to make arrangements for supplying their own forces from the Ist August next, unless immediate payment is made of the bills already presented, and unless the Colonial Government can give some guarantee that can be relied upon for the regular settlement of such claims in future. I have, &c, His Excellency Sir George Grey, X.C.8., &c. D. A. Cameron, Lieut.-General. Commissary-General Jones to Assistant Military Secretary. Sir, — Commissariat, New Zealand, Auckland, 30th June, 1865. Eeferring to my letter, (No. 1000) dated 14th instant, on the subject of the issue of rations to the Colonial Forces, and forwarding correspondence from the Colonial Secretary and Defence Minister, in which those gentlemen distinctly guaranteed that the value of the rations issued should be repaid monthly on a statement thereof being furnished by this department: I have now the honor to transmit, for the information of the Lieutenant-General Commanding, copy of my letter of the 13th instant, forwarding statement of the value of the supplies issued to the Colonial Forces during, the month of March, and the Sub-Treasurer's reply of this date, from which it would appear that the arrangement entered into by Mr. Weld and Major Atkinson for the monthly repayment of the value of all supplies issued to the Colonial Forces has been superseded by other arrangements made subsequently, and of which no notification has reached me. Should this not be the case I would beg to submit for the Lieutenant-General's consideration whether it would not, in accordance with the terms of my letter above quoted, be advisable to cease the issue of rations to the Colonial Forces from and after such date as the Lieutenant-General may be pleased to fix, due notice thereof being made to the Colonial authorities. I have, &c, The Assistant Military Secretary, &c. H. Stanley Jones, Head Quarters. Commissary-General. Commissary-General Jones to the Sub-Treasurer, Auckland. Sir, — Commissariat, New Zealand, Auckland, 13th June, 1865. In accordance with the terms of the Colonial Secretary's letter of 18th February, 1865, (copy herewith,) I have the honor to enclose a statement of charges by the Imperial Government against the Colonial Government of New Zealand, on account of supplies issued by this department to the Colonial Forces during March last, and request that the amount, £8232 13s. 7d., may be paid into the military chest at Auckland. I have, <fee, 'H. Stanley Jones, The Sub-Treasurer, Auckland. Commissary-General. 5

DESPATCHES FROM THE SECRETARY OF STATE

A.—No. 1

20

Sub-Treasurer Porter to Commissary-General Jones. Sir, — Sub-Treasury, Auckland, 30th June, 1865. In reply to your letter of the 13th instant, (No. 992 c) enclosing a statement of charges against the Colonial Government for supplies issued to Colonial Forces during the month of March last, amounting to £8232 13s. 7d., I have the honor to acquaint you that I am informed by the Colonial Treasurer that the arrangement referred to in your letter is understood to have been superseded by arrangements subsequently made, but that on this point His Excellency the Governor will be moved to communicate with tho proper authorities. I have, &c, Commissary-General Jones, C.8., &c. E. F. Porter, Auckland. Sub-Treasurer.

STATEMENT showing the Number of COLONIAL CORPS in New Zealand who are receiving pay from Imperial Funds by latest Estimates.

STATEMENT showing the Number of Colonial Troops and Horses in New Zealand receiving Rations from the Commissariat Department.

STATION. COEPS. period OP ■r. ■A H u —( h h 0 p H 2 fc CO 2 *> fc 3 M H a w a og o £ fc bemakks. ESTIMATE. 1865. Vanganui Cavalry March and April 7 93 Ditto ... Wanganui Militia jj jj I!) 327 Ditto ... Waikato Militia April and May 49 Ditto ... Forest Eangers j, jj 52 'aranaki ... Taranaki Militia 1st to 30th June 7 139 Ditto ... Native Militia jj jj 4 100 87 760 Commissariat, 1 Auckl: few Zealand, H. Stanley Jones, ,nd, 30th June, 1865. Commissary-General.

NUMBER OF NUMBER OP RATIONS MEN NUMBER REMARKS. OP DISTRICT. ISSUED IN RECEIVING TOTAL. HORSES DETAIL RATIONS IN RATIONED. DAILY. BULK. Luckland 1500 2150 3650 66 Vanganui 547 300 847 125 'aranaki 121 121 Iawke's Bay 168 168 Totals 2336 2450 4786 191 Commissariat, NeAucklam r Zealand, , 30th June, 1 165. H. Stanley Jones, Commissary-General.

A.—No. 1.

No. 6. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 85.) Downing Street, 26th October, 1865. SIR,- —■ (Eeeeived at Wellington, 26th December, 1865.) I have the honor to acknowledge the receipt of your Despatch of August 14th, No. 106, in which you enclose to me a Memorandum of your Ministers protesting against the possible disallowance of " The New Zealand Settlement Act. 1863," which was intimated to you in my Despatch No. 24, of the 24th April, You also transmit to me, by their request, a copy of a Bill which is now before the General Assembly, for altering, amending and continuing that Act. As it is still uncertain in what shape the Bill may pass the Assembly, I shall not here express any opinion upon its provisions. I will only remind you that before the end of next March, Her Majesty's Government must decide whether the original Act can be allowed to remain in operation. There are however two observations in the Memorandum of your Ministers which require notice. They are — (1.) " But if the Colony is to be charged with the responsibility of its own " internal government and defence, Colonial Ministers claim for themselves the " right of determining the question as to what land should be confiscated, and " subject to what conditions. It will be otherwise impossible for them to under- " take the responsibility of conducting the Colonial Government." And, (2.) " The case, however, is one in which, with the utmost deference to the " Imperial Authorities, Ministers feel it their duty to point out that, under the " altered relations between the Colony and the Mother Country, the fullest " discretionary power must be left with the Colonial Government." In the first place it must of course be understood that the Native Affairs are not to be placed in the hands of the local Government in any other sense than that in which the affairs of the settlers themselves are so placed; and that in cases touching the honor or interests of the Crown, the adherence to treaties entered into by Her Majesty, and other matters of an analogous kind, the Eoyal power of disallowing Acts is no more abandoned in the one case than in the other. This remark appbes not to New Zealand only, but to all Colonies. But I have also to observe, that the Imperial control over circumstances calculated to affect the progress, continuance or revival of the war, was not to cease until the Imperial force should have left the Colony. I have not as yet been informed that a single regiment has been actually embarked; and I must distinctly explain, that so long as any considerable number of British troops remain in New Zealand, Her Majesty's Government must continue to retain a reasonable control over that Native policy on which the employment of these troops will depend. I have received with much pleasure your Ministers' assurance of their earnest desire to adapt their measures so as to meet the objects which the policy of Her Majesty's Government has been directed to secure. I shall await with interest your further report on the Act. In the meantime you may rest assured that I shall not lightly advise Her Majesty to disallow any Act to which the Eoyal Assent can properly be given, and that nothing will give me greater satisfaction than to see your Ministers, in concert with the Assembly, pursuing with success a just and independent policy, in Native as well as in other affairs. Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 7. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 86.) Downing Street, 26th October, 1865. Sir, — (Received at Wellington, December, 1865.) I have received your Despatches of the dates and numbers noted in the margin. I learn with great satisfaction that the Weraroa Pa, to the possession

19th July, 1865, No. 92.

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TO THE GOVERNOR OF NEW ZEALAND.

A.—No. 1.

of which you have attached so much importance, has fallen into your hands without loss. Her Majesty's Government appreciate the skill and gallantry displayed on this occasion by the Colonial Eorces and the friendly Natives; and observe with pleasure that you desire to call their attention to the assistance which you received from Her Majesty's regular Eorces. I trust that all the important consequences which you have anticipated as likely to result from the reduction of this rebel fortress may be fully reahsed. I have not failed to communicate to the Secretary of State for War your Despatches on the subject. I have also to transmit to you a letter and its enclosures which I have received from the War Department, conveying the answer of General Cameron to the complaints against him contained or implied in your Despatches and in your Speech to the Assembly. I must at the same time inform you that the course which you have pursued in assuming so large a share in the personal direction of military operations in presence of the regular Eorces and of their officers, has given rise to questions upon which I shall probably have to address you by the next mail. I read with pleasure in the Memorandum of your Ministers the statement that they intend to remain in office, and am glad to learn that none of the embarrassments which you anticipated from their resignation are now likely to arise. I told you by the last mail that I was satisfied that some misunderstanding must have prevailed, and that I expected soon to hear that it had been dispelled. Your Ministers have rightly understood from my Despatch of April 26th, that their pobcy is recognised by the Home Government, a point upon which I should have thought there could be no doubt after the expbcit declaration conveyed to you in my Despatch of February 27th, and again in that of March 27th, in both of which I told you that the Eesolutions of the Assembly embodying that policy had been received by Her Majesty's Government with entire satisfaction. They are, however, mistaken in supposing that any discretionary powers recently vested in the Lieutenant-General Commanding had reverted to you. It never was intended that any discretion should be vested in you or in your Eesponsible Advisers, with respect to that portion of Her Majesty's Troops, who, under the correspondence between this department and the late Colonial Treasurer, were not to be included in the contribution expected from the Colony for the current year. In taking this portion of the Eorce at five regiments, we made, I think, an estimate fan* and liberal to the Colony; and in my Despatch of February 27th I informed you : "By the present mail the Secretary of State for War gives instructions to " General Cameron which contemplate that he will make arrangements for sending " home five regiments. Her Majesty's Government have arrived at the conclusion " that, under present circumstances, these instructions may be safely given. I " understand that the Colony does not propose to accept the guarantee of the " Imperial Treasury under the Act of 1864, but the former arrangement under " which the Colony paid only five pounds for each soldier has expired ; and I shall " expect to hear from you that arrangements have been made for the new and " increased contributions in respect of the Troops who still remain. The orders " given to General Cameron will enable your Ministers to diminish this " contribution, if they shall think fit, by requesting the withdrawal of a larger " portion of the Force." The only discretion vested in General Cameron with respect to the five regiments was intended to guard against undue haste in the execution of his orders, exposing the Colonists to hazard under circumstances unforeseen by Her Majesty's Government. It was thus described to you by me in my Despatch of 27th March : " The latitude given to General Cameron, with " respect to the time of the withdrawal of the Troops, is intended to prevent the " hazard of attack upon the Colonists, considering the distance and interval of " time which render it impossible to foresee the circumstances under which the " Colony may be placed when the Despatches from home shall reach you. It is " not intended to encourage the adoption of any policy which may tend to retard " the ultimate withdrawal of the Force." General Cameron appears to have understood correctly the meaning of the instructions he received from Lord de Grey ; and but for your authoritive protest would have carried at once into effect the wishes of Her Majesty's Government by sending home this portion of the Force.

21st July, 18G5, No. 93. 22ml .July, JMi5. No. 94. 4th August, 1805, No. 97. 12lhAugust,1865, No. 108. 1 llh August, 1865, No. 108. War Oilirr" ISi h October, 1805. Vide Enclo.-uiv to Governor Grey's Despatch, No. 19, p. 27.

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DESPATCHES FROM THE SECRETARY OP STATE

TO THE GOVERNOR OP NEW ZEALAND.

23

A.—No. 1

Any misunderstanding, however, which has existed on this question will, I conclude, no longer be productive of evil consequences, since I learn from your present Despatches that the five regiments in question will be sent home in pursuance of the instructions of Her Majesty's Government to that effect; and I have every reason to suppose that you and your Ministers now concur in the expediency of this course. It does, however, appear to be very necessary to estabbsh a clear understanding with respect to the Troops who will still remain in the Colony, and towards the provision for which the Colony is expected to contribute. With respect to these Troops, no discretion which ever was vested in you and your Ministers has been withdrawn; and no discretion has ever been vested by Lord de Grey in General Cameron. But the acceptance by the Colony of the obligation to contribute is an essential condition of your continuing to enjoy any such discretion. I observe with much pleasure that in your Speech, made by the advice of your Ministers to the Assembly, you congratulate that body on the partial establishment of peace ; and in speaking of the intended return of five regiments to England, express your trust and belief that those five regiments may be quickly followed by the remainder of the Imperial Troops; that you consider that the measures adopted by the Assembly have, in a great measure, relieved the financial embarrassment in which the Colony had been placed; and that you trust that you will be enabled to provide for the financial exigencies of the Colony without encroaching materially on the provision heretofore made out of the general ordinary revenue for the service of the Provinces. I share sincerely in the satisfaction with which you observe the steady advance of the Colony in population and wealth ; and rejoice that you see no reason for anticipating any check to this onward progress ; and that you believe it cannot fail to carry the Colony through difficulties, which you describe as temporary in themselves, and already beginning to disappear. I notice, however, that you are silent on the subject of contribution for the Imperial Forces serving in the Colony; and in your Despatch of 19th July, No. 92, you expressly say that it will be difficult for you to induce the Colonists to pay for Forces which are in times of difficulty practically useless. I have also before me the Memorandum of your Ministers, dated 11th July, in which they assign then reasons for not recommending to the Colonial Parliament the expected appropriation; and although it appears to have been written in some measure under the same misapprehension as the Memorandum of the 12th July, announcing their intended resignation, it has not yet been withdrawn. I do not, however, assume that your Ministers will not propose, or that the Assembly will not make, the expected appropriation; but I feel that after the repeated declarations of your Advisers that they are anxious for the withdrawal of the Troops, and the support almost unanimously given by the Assembly to your Ministers in this pobcy, the time has now arrived when it is incumbent on Her Majesty's Government to take care that this question is brought to a point. I have therefore, on the part of Her Majesty's Government, once more to remind you, that in the Estimates submitted to the Imperial Parliament, this contribution has been assumed as the condition on which alone Imperial Troops would be permitted to remain in New Zealand, and to say that while Her Majesty's Government are quite satisfied with the pobcy of your Ministers as declared in the resolutions adopted by the Assembly, they can no longer delay to take such security as lies in their power for the fulfilment of the expectations held out to Imperial Parbament, and of the accomplishment of the policy adopted by the Assembly of New Zealand. They require you, therefore, immediately upon the receipt of this Despatch, to place at once at the disposal of the Officer commanding Her Majesty's Forces in the Colony, with a view to their early removal from New Zealand, all the Troops for whom no such appropriation shall have been made by the Assembly of New Zealand, as was contemplated in the correspondence between this department and the late Colonial Treasurer, laid before Parliament in June, 1864. In order, however, that full opportunity may be afforded to your Ministers to take such steps as in then opinion may be required by the state of the Colony, and that the due responsibility may rest upon them, I add the following qualification : that if 6

A.—No. 1

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DESPATCHES EROM THE SECRETARY OE STATE

when you receive this instruction no such appropriation shall have been made, and you or your Ministers consider that the Troops or any portion of them cannot safely be sent away, and are desirous forthwith to convene the Assembly and to obtain the appropriation, you are at liberty to allow sufficient time for this purpose, and no more. The principal object of your Despatch of August the 14th, No. 108, appears to be the vindication of yourself and your Ministers against the observations of General Cameron. I could have wished that with his departure from New Zealand it had been possible to close this painful chapter; and at any rate, since you inform me you have more to say by the next mail, I need not occupy this Despatch with any further reference to the subject; but among the enclosures to that Despatch are documents which cannot be passed by without remark: It appears that your Ministers, treating as a payment in cash the Debentures for £500,000, sent home in March, arrive at the conclusion that the debt due from the Colony to the Imperial Treasury has been reduced to an insignificant amount. As soon as this statement shall have passed under the examination of Her Majesty's Treasury I shall acquaint you with the result. In the meantime, however, I must observe that the Imperial Treasury have not accepted, and are not empowered by Parliament to accept as payment in cash, Debentures which, if sold at that time, would have produced very much less than the sum they purport to represent. In order to avoid entailing upon the Colony the loss which such a sale would have occasioned, the Lords of Her Majesty's Treasury proposed the temporary arrangement communicated to you in my Despatch of 26th July, No. 54, and in that of August 23rd, No. 66, to which I am awaiting your reply. Another enclosure bears upon the very important subject of the advances which you have obtained from the Treasury chest for the pay and rations of the Colonial Forces. But as the information which you have supplied to me is still as yet fragmentary, I await any further explanation which may be included in the answers to General Cameron's Memorandum, which you acquaint me I shall receive by the next mail. I cannot, however, permit this post to pass without noticing observations put forward by you in your Memorandum of the 11th July, which has been communicated to me by the War Department, though not as yet by yourself. Those observations have been already to a certain extent answered by anticipation in my former Despatches, and in the letters from the Lords Commissioners of the Treasury, which I have enclosed in those Despatches. lam not aware that you ever had any authority for supposing that any such advances as you speak of from the moneys of the United Kingdom for the payment of the Colonial Troops would be approved by Her Majesty's Government. But in the Memorandum now before me you appear altogether to overlook the position of Her Majesty's Government in respect to the expenditure or the advance of public moneys. You refer to the practice of European nations in guaranteeing loans for their allies, or finding subsidies; but you do not appear to remember that the moneys out of which loans and subsidies are provided, are in every such case appropriated to those objects by the Imperial Parliament. Military expenditure, when it cannot be specifically appropriated, is the subject of votes of credit obtained from the Imperial Parliament; and it is wholly contrary to the very practice to which you appeal, for the Executive Government to apply moneys of the United Kingdom to those purposes without the previous sanction of Parliament. I trust that the clear and positive instructions which I gave you as soon as I heard that these advances had been recommenced will have attained their end; and that the Colony will ere this have taken measures for replacing to the Treasury chest moneys which ought not to have been drawn from it. Neither the Commissary-General, nor the Lieutenant-General, nor you, nor Her Majesty's Government at home, have authority to issue moneys from the Treasury chest in exchange for the Debentures of the Colony. That power, if exercised at all, belongs exclusively to the Imperial Parliament. These observations would have been, I think, unanswerable, even if the subject had been new to Parbament. But in the present case the subject has been brought before Parliament and has been conceded to the Colony; and the terms of that aid have been rejected by the Colony.

A.—No. 1.

I shall be most anxious to hear that the engagements into which youi Ministers entered for the monthly repayment of these advances have been redeemed, and that your explanation is such as may enable me to justify the course which you have pursued.' I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 8. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 92.) Downing Street, 22nd November, 1865. SIR, — (Eeceived at Wellington, 27th January, 1866.) I have to acknowledge the receipt of your Despatches Nos. 118 and 119, relating the rapid successes of Her Majesty's Colonial Forces and of the friendly Natives, against the authors of the disturbances upon the East Coast of New Zealand, which commenced with the murder of the Eev. Mr. Volkner. I share sincerely in the hope which you express, that these successes will bring the disturbances shortly to a close, and request that you will convey to Captain Frazer and to the Chief Te Mokena the assurance that Her Majesty's Government receive with great pleasure your report of the gallantry and skill displayed by them, and by the officers and men who have been engaged, and highly appreciate the value of the services thus rendered to the cause of order. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 9. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 93.) Downing Street, 27th November, 1865. Sir — (Eeceived at Wellington, January, 1866.) I have received your Despatch No. 117, of September 14th, enclosing the Financial Statement of the Colonial Treasurer. I have perused that statement, as you anticipate, with much interest, especially those portions of it in which he speaks of the rapidly increasing income of the Colony, its large resources, and the increased wealth and consuming power of its population; and more particularly the concluding remark, that when the Assembly endorsed the policy of the Government it must have been aware that such a policy carried with it financial consequences, and was understood to be a policy of " reliance on our own resources." At the same time I have felt it to be my duty to submit the statement to the examination of the Lords Commissioners of the Treasury, and have now to enclose to you the letter in which they have conveyed to me their observations ' upon it. You will see that they propose to communicate further with me after obtaining from the other departments in this country more complete information in regard to the liabibties of New Zealand toward this country. But in the meantime they have thought it right at once to call my attention to certain points, with a view to my asking you for the necessary explanations. I have, &c., Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

Treasury, 18th November, 1865.

Enclosure in No. 9. Mr. Hugh C. E. Childers to Sir F. Rogers. Sir, — . Treasury Chambers, 18th November, 1865. I am directed by the Lords Commissioners of Her Majesty's Treasury to acquaint you, for tbe information of Mr. Secretary Cardwell, that my Lords have had under their consideration the Financial Statement of the New Zealand Government, which was submitted to the Colonial Legislature on the 30th of August last, a printed copy of which paper was transmitted to this office in your letter of tbe 11th instant. As my Lords are quite unable to concur in the view of the obligations of the New Zealand

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TO THE GOVERNOR OF NEW ZEALAND.

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DESPATCHES FROM THE SECRETARY OF STATE

Government which this document presents, they think it right at once to call the attention of the Secretary of State to some of the more important omissions and errors which it contains, with a view to explanations being called for from the Colonial Executive. In the first place their Lordships desire to call Mr. Cardwell's attention to the Statement of Account No. 9, on page 19 of the printed copy, in which it is erroneously stated that the Colonial Government has paid to this Board, and that Her Majesty's Government have accepted, Debentures amounting to £500,000 (at four per cent., having fifty years to run), taking credit for full sum in sterling, as if that amount had been actually realized by such payment in Debentures ; whereas it is shown in the Account No. 6, page 16, that New Zealand Debentures, raised under the same Loan Act of 1863, amounting to £1,000,000, and bearing five per cent, interest, were disposed of by the Crown Agents for the Colonies in London for the account of the Colonial Government at a discount of nearly twenty per cent. It appears, moreover, by a statement on the same page of the Account, that while the Colonial Government were assigning Debentures to the Imperial Government at par (bearing four per cent, interest and fifty years to run), they were disposing of their Debentures under the Debenture Act of 1864 at only a fraction of premium, although they were for short dates, and at eight per cent, interest. My Lords had already informed the Secretary of State, upon the occasion of these Debentures for £500,000 having been offered by the Colony towards the liquidation of its debt to the Imperial Government, that the Board has no power, without the express authority of Parliament, to accept securities of this description in lieu of cash, and that they only accepted the Debentures " as collateral security for the debt," and their Lordships presume that this condition of acceptance must have been communicated to the Colony. With reference to the Statement in Account No. 9, at page 19 : " That the Imperial Government " is charged with a sum of £85,891 10s. 4d. as an admitted error of account," my Lords have to observe that this sum is represented by the Commissary-General to be, so far as he is aware, one properly chargeable to the Colony; but as there is some complication in the accounts as regards this item, their Lordships consider that it will be desirable to suspend any claim on this account until it shall have been further investigated. There remains, however, the old outstanding claim of £67,927 ss. 9d. for Fencibles, which has been altogether omitted from the account now under consideration, but which my Lords are of opinion should clearly be included in any comprehensive statement of the liabilities of the Colonial to the Imperial Government. As regards the charge against the Imperial Government, on the debit side of the account, amounting to £107,169 Is. Id., stated to be for " Contributions for Military Protection remitted by Her Majesty's Government," my Lords have to remark that, no unconditional remission of the capitation rate for the Queen's troops in New Zealand was ever made, but that certain conditions as to the annual expenditure of £26,000, for Native purposes, and for the discharge of Colonial debts, were imposed by the Treasury Minute of the 21th of May, 1862, which to this day have not, as my Lords are informed, been carried out, and it will remain for consideration whether, under these circumstances, the entire capitation rate, which is strictly due to Her Majesty's Government, should not be enforced. There is a third debit against the Imperial Government in this account (No. 9) amounting to £80,000, stated to be " the proportion of the Transport Service on the Waikato, and other claims," about which my Lords have no information such as would justify them in admitting this item in diminution of the liability of the Colonial Government. In the same account the Colonial Government admit a charge against the Colony of £741,466 14s. 7d. (subject to the further investigation of the item £85,891 10s. 4d., stated to be " Admitted error of account,") but my Lords wish to call the attention of Mr. Cardwell to the fact that the account of advances made from the Treasury chest is incomplete, that it contains only one small advance on account of the current financial year, whereas Commissary-General Jones states that advances at the rate of £15,000 a month have been made by him, and no credit is given in respect of auy contribution on account of Queen's troops for that period. My Lords propose at once obtaining from the War Offices, the Admiralty, and tho Audit Office, more complete information than they at present possess in regard to the liabilities of New Zealand to Her Majesty's Government up to the very latest date to which the accounts in this country carry it, and they will communicate the same, when in proper shape, to the Secretary of State. I have, &c., Sir F. Eogers, Bart., &c. Hugh C. E. Childers.

No. 10. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 97.) Downing Street, 27th November, 1865. Sir, — (Eeceived at Wellington, January, 1866.) By the present mail I have received the New Zealand Gazette which contains your Proclamation announcing to the Natives of New Zealand that " the war which commenced at Oakura is at an end." I need scarcely say that I receive this announcement with great satisfaction. I have also received the Financial Statement of your Treasurer, leaving it no longer open to doubt that your Ministers decline to propose to the Assembly the capitation charge on the footing of the correspondence between this department and the late Colonial Treasurer, in May, 1864.

A.—No. 1.

Under these circumstances, Her Majesty's Government have determined that the force of regular Troops in New Zealand should at once be reduced to a strength not exceeding three battalions of infantry and one battery of artillery ; and the Secretary of State for War by this mail instructs General Chute to take steps without delay for the purpose of carrying that determination into effect. You will understand that even this reduced force will not remain unless by request of your Ministers, and upon their undertaking to propose to the Assembly the required capitation charge. I have repeatedly declared to you the wish of Her Majesty's Government that the policy embodied in the Eesolutions of the New Zealand Assembly, of December, 1864, may be completely carried into effect. I trust, therefore, that nothing will have occurred to vary this policy on the part of your Ministers, or to make them desire to retain in New Zealand these three battalions and one battery, or any smaller portion of the force. In order, however, to guard against the risks which might attend an altered state of circumstances in the Colony, and to provide for a consequent possible change in the views of your Ministers, Her Majesty's Government have thought it prudent still to entrust you with the power of retaining in the Colony three battalions and one battery, if it shall be the wish of your Ministers and of the Assembly to make the appropriation for them. In this event, it will be your duty to communicate your determination to General Chute, and forthwith to convene the Assembly, if not then in Session, and obtain the appropriation. It is the fixed purpose of Her Majesty's Government, that no Imperial troops shall remain in New Zealand for whom this appropriation shall not have been made. If, as I trust will be the case, there shall be nothing in the state of the Colony which induces your Ministers thus to detain this portion of the force, General Chute will proceed, under his instructions from the Secretary of State for War, to remove the whole. The Gazette also contains a statement of districts which you have proclaimed under " The New Zealand Settlements Act." I have already told you that Her Majesty's Government would not approve the protection by Imperial troops of land taken from the rebels, and that you were expected to include in the land taken for settlement no greater an extent than you were prepared to defend with a. Colonial force. The reduction now made in the whole number of the Imperial troops remaining in the Colony renders it necessary that these troops should be concentrated; and you will, if you exercise the power with which you are entrusted in respect of the three battalions and one battery, or any portion of them, take care, in concert with the General in command, that they are not left in distant and isolated posts. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 11. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 99.) Downing Street, 27th November, 1865. Silt, — (Eeceived at Wellington, January, 1866.) With reference to my Despatch of this day's date, No. 93, I have the honor to transmit for your information a copy of a further letter from the Board of Treasury upon the subject of the liabibties of the Colony of New Zealand to the Imperial Government. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

) Treasury, 27tli I November, 1865;

Enclosure in No. 11. Mr. Hugh C. E. Childers to Sir F. Eogers. Sir, — Treasury Chambers, 27th November, 1865. With reference to the letter from this Board of the 18th instant on the subject of the debt due by New Zealand to Imperial funds, I am desired by the Lords Commissioners of Her Majesty's 7

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Treasury to state for the information of Mr. Secretary Cardwell that their Lordships have this day received from the War Department an account of the sums due for advances out of Annual Army Votes and Treasury chest, together with an estimate of probable further advances, bringing the whole down to 31st October last. It appears from this account that, irrespective of the capitation rate, there is due under the head of " General Charges " a sum of £675,828 12s. Id., not including the outstanding claim for the Fencibles for the period from 1817-8 to 1858-9, viz., £67,929 ss. 9d. The above is also exclusive of any charges incurred in the Naval Department, find chargeable to Colonial funds, their Lordships not having as yet received from the Admiralty a complete account of such charges. I am to add that their Lordships trust to be able to furnish the Secretary of State, in sufficient time for full consideration before the mail of 26th December, a more complete statement of the liabilities of the Colony to Her Majesty's Government. I have, &c, Sir F. Eogers, Bart. Hugh C. E. Childers.

No. 12. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 100.) Downing Street, 27th November, 1866. SlI. — (Eeceived at Wellington, 27th January, 1866.) I did not fail to communicate to the Secretary of State for War your Despatches Nos. 112 and 113, of the 12th of September, respecting the claims of Major Heaphy to the decoration of the Victoria Cross; and I have the honor to transmit for the information of yourself and of your Eesponsible Advisers copies of the correspondence which passed upon the subject. You will observe that Earl de Grey has under his consideration the question whether the existing regulations respecting the grant of this distinction should not be so altered as to admit of its extension to New Zealand and other Colonies. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

Enclosure 1 in No. 12. Sir F. Eogers to the Under Secretary of State for War. Sir, — Downing Street, 22nd November, 1865. With reference to your letter of the 26th of April, I am directed by Mr. Secretary Cardwell to transmit to you, for the consideration of Earl de Grey, copies of two Despatches from the Governor of New Zealand ; the first forwarding a letter from Major Heaphy, praying that his claims for the Victoria Cross may be again considered ; and the second, enclosing a Memorandum by his Ministers relative to Major Heaphy's application, and suggesting that the distinction of the Victoria Cross should be extended to New Zealand and other Colonies. I am to request that, in laying these Despatches before Earl de Grey, you will move his Lordship to take into consideration the additional reasons which are submitted in support of Major Hcaphy's application. It would give Mr. Cardwell much pleasure if these reasons should be found to be such as would enable Earl de Grey to comply with the wishes of Major Heaphy aud of the Colonial Government. I am, &c, The Under Secretary of State, War Office. F. Eogers.

Enclosure 2 in No. 12. Captain Galtojt to Under Secretary of State, Colonial Office. Sir,— War Office, 25th November, 1865. I am directed by Earl de Grey and Eipon to acknowledge the receipt of your letter of the 22nd instant, transmitting copies of two Despatches from the Governor of New Zealand, the first forwarding a letter from Major Heaphy praying that hie claims for the Victoria Cross may be again considered, and the second enclosing a Memorandum by his Ministers relative to Major Heaphy's application, and suggesting that the distinction of the Victoria Cross should be extended to New Zealand and other Colonies ; and in reply, I am desired by his Lordship to request that you will inform Mr. Secretary Cardwell that, as the existing regulations of the Victoria Cross do not admit of the grant of that distinction to Major Heaphy, and as the alteration of those regulations could not be undertaken without full and careful consideration, Lord de Grey is unable, before the departure of the next mail to New Zealand, to give a definite reply to Mr. Cardwell upon that point. His Lordship will howover give his immediate attention to this subject, which concerns the whole of Her Majesty's Colonial possessions, as well as New Zealand, and a further communication will be made to you on the subject. But Lord de Grey cannot permit any time to be lost in expressing his sincere regret that the letter from this department, dated the 26th of April last, should have been understood by the Colonial Ministers in the sense implied by their Memorandum of the 11th of August last.

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TO THE GOVERNOR OF NEW ZEALAND.

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The allusion to a grant of land made in Sir Edward Lugard's letter, was intended to suggest to Mr. Cardwell a mode in which it might be possible for the Governor of New Zealand to mark his sense of Major Heaphy's services, although the regulations laid down in the Eoyal Warrant instituting the Victoria Cross precluded Lord de Grey from submitting the name of that officer to Her Majesty for the grant of this high distinction ; but nothing could have been further from his Lordship's intention than to have even the appearance of speaking in disparaging terms of the gallantry displayed by Major Heaphy at the skirmish on the banks of the Mangapiki, or of the valuable services rendered on many occasions by Her Majesty's Colonial forces, both in isew Zealand aud in other Colonies. I have, &c, The Under Secretary of State, Colonial Office. Douglas Galton.

No. 13. Copy of a DESPATCH from the Eight. Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 103.) Downing Street, 20th December, 1865. Sir, — (Eeceived at Wellington, 26th February, 1866.) I have the honor to transmit to you an extract of a letter which has been received from the War Department, respecting the payment from the Treasury chest of a sum of one hundred and fifty pounds to Mr. Alexander, a settler, in compensation for damage done to his property by certain of Her Majesty's Troops while encamped thereon. The liability to indemnify persons who may suffer losses of this kind, which in a state of War are almost unavoidable, is not one which Her Majesty's Government can adopt. It appears to me to be a subject for the consideration of your Advisers, and I have expressed this opinion to the Secretary of State for War. I have, &c, Governor Sn- George Grey, K.C.B. EDWAED CAEDWELL.

War Offue, 21st November, ]865,

Enclosure in No. 13. Extract of a Letter from the Marquis of Hartington to Sir F. Eogers, dated War Office, 21st November, 1865. " I am directed by the Secretary of State for War to transmit to you the accompanying copy of a " letter from the Commissary-General in New Zealand, together with its Enclosure, in reference lo the " payment from the Treasury Chest of a sum of £150 to Mr. Alexander, a settler in the DLtrict of " Wanganui, as compensation for damage done to his property by certain of Her Majesty's Troops •' encamped thereon." " In the case of this particular outlay, I am to state that irrespectively of the question raised by " Commissary-General Jones as to whether the Wanganui campaign was or was not undertaken with '" tbe consent of the Lieutenant-General, Earl de Grey is of opinion that the compensation granted to " Mr. Alexander for the damage alluded to should be charged to the Colonial Government." Sub-Enclosures to Enclosure in No. 13. Commissary-General Jones to Under Secretary of State for War. Sir, — Commissariat, New Zealand, Auckland, 12th August, 1865. I have the honor to hand you herewith, for the information of the Secretary of State for War, proceedings of a Board of Officers held at Wanganui to investigate a claim for compensation made by Mr. Alexander, a settler in that district, for alleged damage to his property, in consequence of Her Majesty's Troops being encamped thereon ; together with copy of a letter from the Deputy Quarter-master-General intimating the Lieutenant-General's authority for the payment of £150 to Mr. Alexander, which amount he received from this department on 6th May, 1865. I beg respectfully to acquaint you that from correspondence between His Excellency the Governor and Lieutenant-General Sir D. Cameron, X.C.8., published in this Colony, I am led to the conclusion that the Wanganui campaign was undertaken without the consent of the Lieutenant-General being obtained. Should Ibe correct in this view, I would respectfully suggest that the Colony is properly liable for this and similar expenses connected with the movement of Her Majesty's Troops in the Wanganui District. I have, Ac, The Under Secretary of State for War, War Office. A. Stanley Jones, The Commissary-General in Chief. Commissary-General. Acting Deputy Quartermaster-General to Deputy Commissary-General. Deputy Quartermaster-General's Office, Head Quarters, Sir, — Camp Waitotara, Bth February, 1865. With reference to your Letter No. 67 c, of the 21st instant, and its enclosures, I have the honor, by direction of the Lieutenant-General Commanding, to forward to you the enclosed approved proceedings of a Board of Officers assembled to report on Mr. Alexander's claim for compensation for damage done to his property in consequence of the Troops being encamped thereon, and to intimate

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DESPATCHES PROM THE SECRETARY OF STATE

that the Lieutenant-General hopes that Mr. Alexander will be satisfied with the amount (£150) which he authorizes being paid to him on the recommendation of a Board. I have, &c, D. Gamble, The Deputy Commissary-General, &c, Lieutenant-Colonel, Head Quarters. Acting Deputy Quartermaster-General. Eeceived from Acting Commissary-General's clerk by the hands of Deputy Acting CommissaryGeneral Graham, the above-mentioned sum of one hundred and fifty pounds, being for compensation in full of all demands as within mentioned. Wanganui, 6th May, 1865. Jas. Alexander. Proceedings of a Board of Officers assembled at Camp Alexander, near Wanganui, on the 30th January, 1865, in pursuance to General Order No. 1042, dated Head Quarters, Camp Nukumaru, 26th January, 1865, to investigate a Claim for Compensation made by Mr. Alexander for alleged damage to his property, in consequence of Her Majesty's Troops being encamped thereon. President —Lieutenant-Colonel Logan, 57th Eegiment: Members —Brevet Major Hassard, 57th Eegiment; Captain Schonberg, 57th Eegiment, Acting Deputy Assistant Commissary-General. The Board having met pursuant to order proceed to examine evidence. Mr. James Alexander, having been called in, states : One of the first losses which I sustained was the destruction of a sheep-wash pen, which I cannot replace under £25, a,s the wood for the purpose must be purchased and brought from Wanganui, as every vestige of the pen has disappeared. 2nd. Damage to three gates and posts, averaging £1 10s. each. 3rd. Destruction of fences, the making up of which I estimate at £15. 4th. Damage to hay and hay ricks, £20. This loss has been caused by the trespass of cattle belonging to the Transport coming through open or knocked down gates into paddocks not occupied by the Troops. Questions by the Board—Which Transport do you allude to, the Military or the Local Transport? The Local. At the time of the trespass stated, did the Local Transport receive forage, or had they to forage for themselves ? I cannot say. sth. With regard to the ground upon which the Troops were and are still encamped, I have to state that they occupied more or less about 200 acres, and which, previous to the arrival of the Troops, carried (1,500) fifteen hundred sheep, and owing to the constant traffic of both Troops and cattle I was necessitated to remove the whole. The sheep in question could have remained till the end of May of the present year, and after that one-half would have remained till the end of the year. I estimate the loss consequent on all this at (£200) two hundred pounds. I may further state that just before the Troops encamped upon my property, I was about purchasing from 100 to 150 head of horned cattle, but owing to the destruction of the grass I could not carry out that arrangement. I adopted every precaution to keep the gates closed, but invariably found them open in the morning. Alexander's Estimate. £ s. d. Sheep pen ... ... ... ... ... 25 0 0 Three gateß ... ... ... ... ... 4 10 0 Fences ... ... ... ... ... 15 0 0 Hay, &c. ... ... ... ... ... 20 0 0 Grass ... ... ... ... ... 200 0 0 £264 10 0 Mr. Daniel Peat, having been called in, states : I am partner with Mr. Alexander in a farm and property on the Kai Twi. I know that the occupation of our property by the Troops has caused considerable damage ; the following I can name: — Ist. A sheep pen and washing place, which, before the arrival of the Troops was in working order, is completely demolished, to replace which would cost between £20 and £30, as the materials would require to be brought from Wanganui. 2nd. Gates and posts damaged to the amount of £2, in all about £6. 3rd. Fencing damaged to the amount of from £15 to £20. Ith. Hay mown, gathered and in stacks, probably two tons, value £20. sth. Loss of grass, as before the occupation of our land by the Troops there were (1,700) seventeen hundred head of ewes and lambs on a paddock of about 200 acres, and they could have remained till winter, but they had to be removed owing to the constant traffic of bullocks and drovers, and the encampment of the Troops in this field. I consider we have thereby sustained a loss of £180. With regard to paragraph 4, I beg to say that I have constantly adopted every precaution to keep off trespass from the hay, but always found the gates open, and the bullocks eating the hay in tho morning. Peat's Estimate. Sheep pen ... ... ... ... ... ... £20 to £30 Gates ... ... ... ... ... ... 6 Hay ... ... ... ... ... ... 20 Grass ... ... ... ... ... ... 180 Fencing ... ... ... ... ... ... 15 to 20 Total ... ... ... ... ;.. £241

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Finding. The Board having visited the farm of Messrs. Alexander and Peat, and inspected that portion where the alleged damage has taken place, find that the statements of the owners are correct as to the damage, but consider that £150 would bo sufficient remuneration for the damage or destruction complained off. E. A. Logan, Lieut.-Colonel, Major 57th Eegiment, President. S. H. Hassard, Brevet Major 57th Eegiment. P. A. ScnONBERG, Captain 57th Eegiment, Acting Deputy Assistant Commissary-General. Camp Alexander's Farm, Wanganui, 30th February, 1865. Approved—D. A. Cameron, Lieutenant-General.

No. 14. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 104.) Downing Street, 23rd December, 1865. SIR, — (Eeceived at Wellington, 26th February, 1866.) With reference to my Despatch No. 76, of the 22nd of September, -•respecting the purchase at Waitotara, I have the honor to transmit for your information the accompanying copy of a letter addressed to Sb* D. Cameron by Mr. Eield, a settler at Wanganui, offering a full and specific account of the whole of the circumstances attending the transaction. I have thought it best to place you in possession of this letter, as the statements which it contains may be the means of guiding your inquiries and facilitating tbe preparation of the report which I have requested you to furnish me on the subject. I have, &c., Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

7th September, 1863.

Enclosure in No. 14. Mr. Field to Sir D. A. Cameron. Sir, — Wanganui, New Zealand, 7th September, 1865. In the correspondence between yourself and Sir George Grey, lately published, several references to the Waitotara purchase occur; and in one of your later letters you mention an intention of bringing the matter under the notice of the Home Government. To prevent any possible mistakes in so doing I have ventured to trouble you with the following history of the affair: Tho Ngarauru tribe, who own the country from Kaiiwi nearly to Patea, were for many years conspicuous for their friendship to the settlors. During the Wanganui war several settlers with their stock sought refuge at Waitotara, and were for some years protected from harm. In common with tho bulk of the Native tribes in this part of the Colony, the Ngarauru' retained their independence, having never been parties to tho treaty of Waitangi, or in any way submitted themselves to British authority. During many years a correspondence on the subject of selling land was kept up between them and Mr. McLean, the Land Purchase Commissioner. The four principal Chiefs of the tribe, being all childless, wished to sell and get their share of the proceeds, but the bulk of the tribe, though perfectly ready, and even desirous to sell, if they could have done so in open market to the highest bidder, objected to part with their property to the Crown at a few pence per acre, that the latter might make a revenue by retailing it to settlers at a pound per acre or upwards. They were, however, by no means determined even in this, but would have waived the point if they could have seen their way to getting an equivalent in some other form. For example, from 1850 to-1853, they were very anxious to sell a large block on the north side of the river, and would have done so if Mr. McLean would have guaranteed them the formation of a township between To Ihupuku and the sea, their idea being that the benefit of a homo market for their produce would compensate them for the low price he was willing to give them for the land. During my six years' residence among them I constantly had land offered me for sale, and was strongly urged to buy it, but was prevented from doing so by the law giving the Government the monopoly of purchase, and I know that the Wesleyan missionary stationed there was actually in treaty for a piece of land as a site for a permanent mission station, but was not allowed to buy it. At length, in 1858, a law was passed under which Natives owning reserves within a purchased block could lease them through Commissioners appointed for the purpose. This law was the thin end of the wedge,—tho first step taken by the Colonists to break down the system of Government landpurchase monopoly which was keeping the Natives in barbarism by impeding the settlement of the country. The Waitotara Natives at once responded. They considered that by selling a block, and keeping back largo slices of the best land as reserves, they might get a rental which would make it 8

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worth their while to accept the low Government price for the remainder. They accordingly offered for sale what is now known as the Waitotara Block, and the bargain was to all appearances struck when Mr. McLean came to Wanganui with Governor Sir T. G. Browne in 1858. The negotiation was, however, entirely conducted in the Butland Hotel, and Mr. McLean concluded the bargain without going on the ground, or having more than a vague general idea of it from a casual glimpse of it in passing down the coast a few years before. He first agreed to give £1500 for a block extending inland as far as Weraroa, and subsequently an additional £500 to have the boundary at the "Waitotara end taken to a point nine miles higher up the river. He was evidently ignorant that from the windings of the river this point was only about three miles inland of Pa Karaka, and seems to have supposed that the reserves which he had agreed to within the block were merely little patches for the Maoris' own use. Accordingly, when the surveyors sent in the rough plan of the block, he found it far smaller than he expected j that it contained a far larger proportion of sand hill and broken bush; and that of the best open land an immense share was taken up by the reserves, which he then demanded should be given up or curtailed. The Natives declined, and offered to return the £500 that had been paid as a deposit, but Mr. McLean refused to take it. For some time (nearly eighteen months I believe) the matter remained in dispute. Mr. McLean would neither pay the balance and complete the purchase, nor take back the deposit and cancel the bargain. At length, a Chief named Te Kepa (a nephew of the head Chief Aperahama) was sent to Wellington or Ahuriri to see Mr. McLean, and endeavour to come to a settlement. He failed to do so, and on his return a meeting of the tribe was held, at which, after hearing his report, it was decided to declare the bargain at an end and the deposit forfeited ; and from an idea of strengthening themselves in so acting, the tribe then joined the King party. When the Waitara war began, the Ngarauru took part in it, not only as belonging to the Kingites, but on account of being closely related to the Ngatiawa tribe, and of having a somewhat similar dispute with the Government. Matters remained in this state till Dr. Featherston was appointed Land Purchase Commissioner for this part of the Island, and he being naturally desirous of purchasing land for the Province of which he was Superintendent, visited Waitotara and endeavoured to re-open the negotiation. The Natives at once said that as the matter had been complicated by the war, and by the land having been made over to the Maori King, it must remain as it was till the war was ended; that they had heard of him as taking their part in the Assembly, and if he liked to see them again when peace was made they would treat with him. He, however, wished to hasten the purchase, and after one or two interviews he offered a further sum of £500 for the land. This tempted the Pa Karaka Natives, who owned little or none of the block except what was included in their own reserve, which they hoped to let, and they accordialy advocated selling. The matter was accordingly referred to the Kingite authorities at Ngaruawahia, the head Chief Aperahama going there to argue the question on one side, while Eio, a pushing, ambitious man of low origin and no principle, did so on the other. The Kingite magnates seem to have behaved very liberally, declining to retain land which had been the subject of purchase (negotiation), and on which a deposit had been paid, and desiring the tribe to give it up, rather than put it in the power of the Pakehas to say, however falsely, that they had repudiated a bargain. Dr. Featherston obtained, through Charles Broughton and Pehi, the Wanganui Chief, a report of the discussion and decision, and armed with this he again went to Waitotara, and called on the Natives to obey the Kingite mandate. They refused to do so ; and there can be no doubt that if Dr. Featherston had acted wisely, and let the land question remain in abeyance, he might have taken advantage of the disgust felt at the King authorities turning against them, to detach the tribe altogether from the Kingite party. Instead of this, however, his anxiety to get the land, and the credit of having concluded the purchase where Mr. McLean had failed, led him to ignore the claims of the bulk of the owners on the score of Kingism, and to treat with the Pa Karaka Natives only, notwithstanding the fact that they were equally Kingites and concerned in the war, Eio himself having been shot in the leg at Waiuka. In acting thus he was backed by some of the Wanganui Natives who had small collateral interests in the land, and the upshot was that when the money paid by Dr. Featherston was divided, the bulk of it, from the Waitotara Natives' claims being ignored, passed into the hands of the Putiki and other Wanganui Maoris. The final deed of sale is signed by a totally different set of men from those whose names appear on the original agreement with Mr. McLean, the names of all the leading Chiefs appended to the first deed being wholly wanting in the later one. The Waitotara Natives warned Dr. Featherston that if he paid the money he should not have the land, but they nevertheless acted with great moderation in their opposition. Even when the road was formed across the block they contented themselves with watching and protesting against it, so long as it was on land in respect of which the money had been paid, or on the Pa Karaka Eeserve, and only stopped it when it reached the boundary of the Nukumaru Eeserve, which belongs to Hare Tipene, and which there could not be the slightest pretext for saying the Government had a right to meddle with. They even kept their Waikato allies from interfering with the road party, and when the latter were attacked during the stay of the troops at Alexander's farm, it was not by Waitotara Natives, but by the Wanganui Natives, who had left Kaiwaiki for Weraroa, rather than obey the order to take up their quarters at Putiki. When Eio was killed by the Waikatos, it was not till after he had made himself conspicuous on the occasion of General Waddy's reconnoissance of the Weraroa, and was as much in revenge for his having been with the Troops in the Waikato, as for his acting as a spy, and his connection with the sale of the land. When some of the settlers were out examining the Waitotara Block after it had been announced for sale, the Nukumaru Natives, even when warning them not to do so, and not to dream of purchasing, invited them into the pa and entertained them most hospitably. In fact to the last the best feeling prevailed between the Kgarauru and the settlers at Wanganui. During your own operations your forces were not interfered with till you crossed the Nukumaru reserve boundary, but then you were attacked at once, as trespassing on land to which the Government could have no possible shadow of a claim. The Waitotara purchase is merely a sample of the affairs which have led to the war. It has its origin entirely in the monstrous system of Government land-purchase monopoly: a system devised by the first Governor of the Colony partly to keep foreigners out of the country, partly to bolster up

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the Government settlement of Auckland by impeding the colonising efforts of the New Zealand Company, partly to please the missionaries by preventing settlers from overspreading the Colony, but mainly to get revenue and keep down the subsidies which the Home Government must have otherwise granted in aid of the Colonial expenses. The evil and the danger was seen by the settlers from the very first, and Governor FitzEoy, as long ago as the year 1844 or 1845, was induced to give up the monopoly and throw open the trade in land, but for so doing he was recalled and Governor Grey sent out to restore the old system. The only hope for the Colony is for the Home Government to interfere, and forbid the Colonial Governments, whether General or Provincial, from trafficing in Native lands. So long as a profit from this source forms part of the Provincial revenues, all sorts of dodges will be worked to get lands to sell. Throw open the trade, and in a very few years settlers will overspread the whole Island, and the interests of the two races become so identified as to render war impossible. It is the greatest mistake possible to suppose that settlers wish the Government to acquire land for them. On the contrary, all we ask is to be let alone, and then we can buy the land directly from the Natives to the satisfaction of all parties, and the increased Customs revenue will far more than make up for the loss of the land profits. The great difficulty we have to contend with is that Dr. Featherston and a few more old Government officials are so wedded to these profits that they will not give them up until compelled, and so throw every impediment in the way of inaugurating a better system. Their talents in other respects, and.tbeir official experience, give them such weight in the Assembly, and with succesive Governments, that they are enabled to get their own way in this point, and the more so that few Government Ministers really care much for justice to the Native race. Feeling sure you will excuse my troubling you with these lines, I remain, &c, Lieut.-General Sir D. A. Cameron, X.C.8., &c. H. C. Field.

No. 15. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 105.) Downing Street, 26th December, 1865. SIE, 5 — (Eeceived at Wellington, 26th February, 1866.) I have the honor to transmit for your information a copy of a letter from the War Department respecting an additional expense which has devolved on the Commissariat chest through the hire of a Steamer rendered necessary by the occupation of two new stations on the Wanganui Eiver by Her Majesty's troops. You will by this time have received repeated intimations of my desire that no operations should be undertaken, whether in the formation of roads, the extension of settlements, or otherwise, which will render more distant the time at which the troops of Her Majesty can be withdrawn from the Colony ; and in my Despatch of the 27th ultimo, No. 97, I impressed on you the necessity of concentrating those troops that might be left in New Zealand. Her Majesty's Government cannot allow charges of the nature referred to by the Commissariat officer in the correspondence which is enclosed to be thrown upon the Commissariat chest, and the Commissariat officer will be instructed by this mail that he is to bring to an end the arrangements for maintaining inland transport at the expense of the Imperial Government. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

War Office, 20th November, 1865.

Enclosure in No. 15. Mr. Galton to Sir Frederic Eogers. Sir,— War Office, 20th November, 1865. I am directed by the Secretary of State for War to transmit to you, for the information of Mr. Secretary Cardwell, the accompanying copy of a letter which has been received from CommissaryGeneral Jones in New Zealand, together with its enclosures, in which he reports the circumstances under which he had found it necessary, with a view to the efficient supply of the two new positions occupied by the troops on the Wanganui Eiver, to engage the services of the steamer " Moutoa," at a monthly subsidy of £275, exclusive of coals. I have, &c, Sir Frederic Eogers, Bart., &c. Douglas Galton. Sub-Enclosures to Enclosure in No. 15. Commissary-General Jones to the Under Secretary of State for War. Sir, — Commissariat, New Zealand, Auckland, sth September, 1865. I have the honor to report for the information of the Secretary of State for War, that in consequence of the occupation of two new positions on the Wanganui Eiver by Imperial Troops,

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distant fifty and eighty miles respectively from the township, it has been found absolutely necessary for their efficient supply that an additional steamer should bo placed at tho disposal of this department, to be employed in the Wanganui District. Deputy Commissary-General Strickland's letter (copy enclosed) will clearly show the difficulties of carrying on the supply of the forces in the district in his charge with the small steamers which he has at his disposal, for both of which there was more than sufficient work. Mr. Strickland does not name the steamer " Favourite," which has been running on the coast. To meet the emergency of the service, which was totally unexpected, I obtained from the Agent of the Colonial Government at Auckland the use of the steamer " Moutoa," which has been hitherto employed on the Waikato Eiver, for a monthly subsidy of £275, this department also finding coals. In order to avoid delay I accepted this offer, and reported my proceedings to the General Officer commanding; but I have not had any intimation of the approval of the arrangement, which is no doubt reserved pending Major-General Chute's arrival in the Colony. I have, &c, H. Stanley Jones, The Under Secretary of State for War, &c. Commissary-General. Tho Deputy Commissary-General to the Commissary-General. Sir, — Commissariat, New Zealand, Wanganui, 11th August, 1865. With reference to my letter No. 243-C, dated Bth August, 1865, I have the honor to inform you that consequent on orders received by the Officer commanding the Forces from His Excellency the Governor, I have been directed to provide for a garrison of 300 rank and file at Pipiriki, and one of 100 at Corinth, situated respectively eighty and fifty miles up the Wanganui Eiver. To carry out these orders, it will be necessary to organize a regular transport service of canoes, aided by a steamer. I purpose establishing a depot at Parakina, thirty miles from Wanganui; or, if possible, at Corinth, twenty miles higher. Up to tho former point the river is nearly at all times navigable for steamers such as tho " Gundagai," and with favorable weather and tides this steamer can reach Corinth. 1 cannot employ the " Gundagai" on the Wanganui Eiver, and I believe the " Koheroa," now employed on the Eiver Waikato, would be more adapted for it. I would therefore suggest to you either that the " Koheroa" be placed at my disposition, for the navigation of the Wanganui, or that the " Sturt" be handed over to me for coast service, thus enabling me to keep tho " Gundagai" for river service, for which, considering her condition, sho is best adapted. I have, &c, To C. G. H. Stanley Jones, C.B. Edward Strickland, D.C.G. Commissary-General Jones, to tho Hon. Dr. Pollen. Sir, — Commissariat, New Zealand. Tho establishment of new posts upon the Wanganui Eiver having rendered it absolutely necessary to secure tho services of a steamer to carry out the supply of the forco stationed at them; and as 1 am informed that the steamer " Moutoa," now employed on the Waikato, is well adapted for such a service, I have the honor to request you will acquaint me if tho Colonial Government will be disposed to place that vessel at the disposal of this department free of charge ; and if not, will you be good enough to state the terms upon which she can be obtained for the service above mentioned. I have, &c, To Hon. Dr. Pollen, Agent for the General Government, Auckland. H. S. Jones, C.G. The Hon. Dr. Pollen to Commissary-General Jones. Sir, — Office of Agent for General Government, Auckland, 17th August, 1865. I have the honor to acknowledge the receipt of your letter, of date 16th instant, in reference to the employment of the steamer " Moutoa," and to forward for your information copy of a report upon the subject from Captain Caddell, Superintendent of Eiver Transport. My instruction with respect to the Waikato Eiver steamers are to cause them to be laid up, and to put an end to all charges upon the Colonial Government on account of the establishment for river transport. I purpose to send your letter by the mail to-morrow, to the Honorable the Minister for Colonial Defence ; but if the necessity of the case is such as to make a reference to Wellington inconvenient, I trust you will see that it would not be possible for mo at present to assent, on behalf of the Government, to any other arrangement than that recommended by Captain Caddell. I have, &c, To the Commissary-General, Auckland. Daniel Pollen. Captain J. Caddell to the Hon. Dr. Pollen, Auckland. Sir, — Auckland, 17th August, 1865. With reference to the Commissary-General's letter dated 14th instant, referred for my report, I have the honor to state that in my opinion the Colonial Government could not at present place the steamer " Moutoa" at the service of the Commissariat free of charge. I opine that the Hon. Defence Minister would be quite willing to employ her for the conveyance of Commissariat supplies, &c., on the Wanganui Eiver, i.e., on the same footing as the Colonial steamer " Gundagai," viz., a fair monthly subsidy and coals. That this monthly subsidy should not be less than £275. That the steamer, valued at £1400, should be at the risk of the Imperial Government on the passage to Wanganui from Port Waikato, all due care being exercised in her navigation. That if the Commissary-General thinks fit at

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35

once to accept this proposition, the "Moutoa" would probably be ready to leave about Saturday under convoy of the Colonial steamer " Sturt," and shall the weather prove moderate she would reach Wanganui within forty-eight hours of her departure. The Hon. Dr. Pollen, Agent for the General I have, &c, Government, Auckland. J. Caddell. Sub-Enclosure 4 to Enclosure in No. 15. H. Stanley Jones to the Hon. Dr. Pollen. Sir, — Commissariat, New Zealand, Auckland, 18th August, 1865. With reference to your letter of yesterday's date, No. 85, and its enclosure, from Captain Caddell, containing the terms upon which the " Moutoa" can be placed at the disposal of the Imperial Government, I have the honor to acquaint you that I accept the terms stated, the arrangement to be of a temporary nature, pending the approval of the General Officer Commanding. The payment of the subsidy to commence from to-morrow, the 19th instant. To the Hon. Dr. Pollen, Agent for the General I have, &c., Government, Auckland. H. Stanley Jones, C.G.

No. 16. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 112.) Downing Street, 26th December, 1866. SIR, — (Eeceived at Wellington, 26th February, 1865.) I have to acknowledge the receipt of your Despatch of the 14th October last, No. 127, reporting the murder of a Native named Kereti, who had been sent by Brigadier-General Waddy, to make known to the rebel Natives between Weraroa and the Patea, the Proclamation which you issued on the 2nd of September, and the subsequent but too probable murder of Mr. C. Broughton, who had also been sent by the Brigadier-General to the rebel Natives near Kakaramea, who hoisted a white flag for the purpose of communicating with him regarding that Proclamation. I have received this intelligence with very great regret. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 17. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 113.) Downing Street, 26th December, 1865. SIR, — (Eeceived 26th February, 1866.) I have received your Despatch No. 126, of the 14th of October, announcing that Mr. Weld and his colleagues had resigned, and that you had commissioned Mr. Stafford to form a new Government. It is very desirable that you should clearly understand that no change of Ministry in New Zealand will affect the views of Her Majesty's Government in respect to the policy embodied in the resolutions of the Assembly of New Zealand in December, 1864. Having accepted with entire satisfaction that policy, Her Majesty's Government intend to adhere to it, and to be guided by it. I had hoped to have received by this mail your Eeport upon the advances referred to in my Despatch of 26th July, No. 54, and to have learnt that measures had been taken for their repayment. I am glad to learn that steps were at length being taken to give effect to the instructions of Her Majesty's Government with respect to the five regiments; that the 65th had already left the Colony, and that Major-General Chute was making arrangements for the 70th, 68th, 43rd, and 40th. My subsequent Despatches will have informed you of the determination at which Her Majesty's Government have arrived with respect to the remainder of the force. That determination, doubtless, Major-General Chute will have taken measures for carrying into effect. If you shall have thought it necessary to act upon the authority entrusted to you of retaining in the Colony three battalions and one battery, on the terms mentioned in my Despatch of November 26th, you will understand that, as I have 9

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formerly stated to you, that force must be considered as a reserve to come to the protection of any district against a sudden and unexpected danger, and not as the permanent force by which the protection of any newly acquired district is to be secured in ordinary times. Her Majesty's Government cannot permit these troops to be dispersed in distant and isolated posts, nor allow the cost of inland transport to be a charge upon Imperial funds. I have, &c, Governor Sh George Grey, K.C.B. EDWAED CAEDWELL.

No. 18. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 3.) Downing Street, Bth'January, 1866. SIR, — (Eeceived at Wellington, 23rd April, 1866.) I transmit to you for your information, and with reference to a Despatch No. 127, of the 24th October last, a copy of a letter from the War Office enclosing one from the Horse Guards, containing the opinion of His Eoyal Highness the Eield Marshal Commanding-in-Chief respecting the reasons alleged by Brigadier General Waddy for delaying to effect the immediate punishment of the murderers of the Native Kereti, and of Mr. Broughton, in the Wanganui District. I have, &c, EDWAED CAEDWEL. Governor Sh* George Grey, K.C.B.

War Office,

Dec. 30,1865,

Enclosure in No. 18. Sir Edward Lugard, Bart., to Sir Frederic Eogers, Bart. Sir,— War Office, 30th December, 1865. With reference to the correspondence transmitted to you in my letter of the 18th instant, I am directed by the Secretary of State for War to request that you will lay before Mr. Secretary Cardwell the enclosed copy of a letter from the Horse Guards, by which it will be seen that His Eoyal Highness tho Field Marshal Commanding-in-Chief concurs in the reasonableness of the objections stated by Brigadier-General AVaddy for delaying to take instant steps for punishing the murderers of the Native Kereti, and of Mr. Broughton, in the Wanganui District. I have, &c., Sir Frederic Eogers, Bart. Edward Lugard, Bart. The Military Secretary to the Under Secretary of State, War Office. Sir, — Horse Guards, 23rd December, 1865. Tho Major-General commanding in New Zealand having transmitted, for the information of the Field Marshal Commanding-in-Chief, copies of his two Despatches and their enclosures, dated 13th October last, to the Secretary of State for War, I am directed to request you will solicit His Lordship's special attention to the difficult position in which officers are placed by tho action of the Governor with reference to His Excellency's Proclamation of Peace to the rebels. His Eoyal Highness desires me to state that, whilst with Sir George Grey and Major-General Chute he deeply regrets that Brigadier-General Waddy did not at once take upon himself' to punish and inflict retribution upon the murderers of the two messengers, who were actually engaged in the errand of peace and arranging the terms of the same at the time they were killed, as assuredly he ought to have done, yet* His Eoyal Highness cannot altogether admit that, under the very peculiar circumstances, the Brigadier-General's failure to accept such responsibility is entirely without excuse, as in the face of the Governor's Proclamation, an officer might certainly feel that any hasty or offensive action on his part, even in just retribution of such treacherous barbarity, might seriously embarrass the Government, and hesitate therefore before committing himself to such a course of procedure without referring to superior authority. I have, &c, The Under Secretary of State, E. B. JonNSON, Colonel, War' Office. for Military Secretary.

No. 19. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 5.) Downing Street, 20th January, 1866. SIR, — (Eeceived at Wellington, 23rd April, 1866.) In my Despatch No. 86, of the 26th October \ast, I informed you that

A.-Xd h.

a copy of yours of the 14th August, No. 108, had, with others, been forwarded to the Secretary of State for War. I learn from Earl de Grey that a copy of that Despatch was sent by him to Sir Duncan Cameron, from whom a reply has been received, but that his Lordship has not considered it necessary to send me a copy of it, as he was of opinion that the time had arrived for putting an end to the painful dispute between yourself and the General, which now involved no matter affecting the Public Service, and that he had caused a letter to this effect to be addressed to Sir Duncan Cameron. I have signified to Lord de Grey my full concurrence in his view, and it therefore only remains for me to express my desire that the correspondence on this subject may now be considered at an end. I in vp _v o Governor Sh George Grey, K.C.B. EDWAED CAEDWELL.

No. 20. Copy of a DESPATCH from the Eight. Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 10.) Downing Street, 25th January, 1866. Sir, — (Eeceived at AVellington, 23rd April, 1866.) I caused a copy of your Despatch No. 150, of the 14th November last, respecting the termination' of the Steam Mail Service between Australia and New Zealand on the commencement of the Service via. Panama, and the amount to be contributed from Imperial funds towards the service from the Ist November last, to be referred for the consideration of the Lords Commissioners of the Treasury. I transmit to you a copy of the reply which I have received, and I have to request you to lay it before your Eesponsible Advisers, and to furnish me with the information which their Lordships require as to the total amount of the payment towards this service. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

Trc__inj:,

Enclosure in No. 20. Mr. Childers to Sir F. Eogers. Sjr,— Treasury Chambers, 25th January, 1866. I am directed by the Lords Commissioners of Her Majesty's Treasury to acquaint you that my Lords have had before them your letter of the 17th instant, forwarding copy of a Despatch from the Governor of New Zealand, from which it appears that an agreement has been come to with the Panama, New Zealand, and Australian Eoyal Mail Company, that the contract of 1858, which, under the notice given in 1864, was to have terminated in November last, shall continue in force until the commencement of the Mail Service via Panama, at present fixed for the Ist Juno next. The Governor adds that the contribution from Imperial funds towards the cost of the service thus to be continued from the Ist November, 1865, will be at the rate of six thousand five hundred pounds a year. I am to request that you will observe to Mr. Secretary Cardwell that it is not stated what is to be the total amount of the payment for this service. On this 'point my Lords would be glad to be furnished with information ; because, whilst the payment to be made by the mother country was limited by the letter from this Board of the 26th August, 1861, to six thousand five hundred pounds a year, it was fixed at a moiety of the sum actually paid for, or applicable to the service between Sydney and New Zealand in the event of such service being performed at a less cost than £13,000 a year. I am to add that my Lords are not prepared to sanction the payment from Imperial funds of any further sum on account of this service than the moiety in question. I am, &c, Hugh C. E. Childers. Sir F. Eogers, Bart.

No. 21. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 12.) Downing Street, 26th January, 1860. gl R (Eeceived at Wellington, 23rd April, 1866) I transmit to you for your information a copy of a letter from the Lords Commissioners of the Treasury from which you will learn that their Lordships

Trcomiy, Jan. 20, WfiD

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TO THE GOVERNOR OP NEW ZEALAND.

DESPATCHES FROM THE SECRETARY OF STATE

JLr-BflL 1

38

have authorized the Governor and Deputy-Governor of the Bank of England, to receive and hold in deposit for them, certain New Zealand Government four per cent. Debenture Bonds to the amount of five hundred thousand pounds (£500,000) as collateral security for the repayment of advances made by Her Majesty's Government to the Colony. I expect shortly to receive from you a reply to my Despatch of the 23rd August, No. 66, and hope that you will have lost no time in acquainting me with the views of your Ministers as to the final liquidation of the debt due from the Colony to the Imperial Government. I learn from a letter, of which I enclose a copy, that two payments have been reported to the Treasury of one thousand three hundred and eighty pounds two shillings (£I3BO 25.), on the 18th October, and one thousand four hundred and eighty-six pounds two shillings and seven pence '(£1486 2s. 7d.), on the 6th November. As these payments were both subsequent to the receipt of the Despatches addressed to you and to General Chute, by myself and the Secretary of State for War respectively, on the 26th July, I conclude that I shall receive some satisfactory explanation of what would otherwise appear to have been a contravention of the instructions conveyed in those Despatches. I have, &c, Governor Sh George Grey, K.C.B. EDWAED CAEDWELL.

Enclosure 1 in No. 21. Mr. Hamilton to Sir Frederic Eogers. Sir, — Treasury Chambers, 20th January, 1866. With reference to your letter of the 11th of August last, relating to certain New Zealand Government four per cent. Debenture Bonds, I am directed by the Lords Commissioners of Her Majesty's Treasury to transmit to you the enclosed copy of a letter from the Crown Agents for the Colonies, relating to theso Debentures, and to acquaint you that my Lords have authorized the Governor and Deputy-Governor of tho Bank of England to receive these Debentures, to the amount of five hundred thousand pounds from the Crown Agents, and to hold them in deposit on account of this Board, in the names of G. A. Hamilton, Esq., Assistant Secretary to the Treasury, and the Crown Agents, as collateral security for the repayment of certain advances made by Her Majesty's Government to that Colony. I am, &c, Sir F. Eogers, Bart., &c. - Geo. A. Hamilton.

Enclosure 2 in No. 21. Mr. Sargeaunt to Mr. Hamilton. Offices of the Crown Agents for the Colonies, Spring Gardens, Sib, — London, 17th January, 1866. Adverting to the last paragraph of your letter to Sir F. Eogers, dated the 19th August last, on the subject of the deposit at the Bank of England, in the names of yourself and the Crown Agents of Now Zealand, Government four per cent. Debentures to the extent of £500,000, I have to request that the Lords Commissioners of the Treasury will give the necessary directions to the Bank to receive these Debentures, which arc now quite ready for delivery. Numbers of Bonds. Ito 200 of £1000 each ... ... ... ... £200,000 1001 to 1,300 „ 500 „ ... ... ... ... 150.000 2251 to 2,625 „ 200 „ ... ... ... ... 75,000 501 to 1,250 „ 100 „ ... ... ... ... 75,000 £500,000 I have, &c, G. A. Hamilton, Esq., &c. W. C. Sargeaunt. Enclosure 3 in No. 21. Mr. Hamilton to Sir F. Eogers. _jnt,— Treasury Chambers, 20th January, 1866. With reference to your letter of the 26th ultimo, on the subject of advances from the Treasury Chest in New Zealand, I am directed by the Lords Commissioners of Her Majesty's Treasury to request that you will state to Mr. Secretary Cardwell that their Lordships have received a letter, dated the 7th of November last, from the Officer in charge of the Treasury Chest at New Zealand, enclosing warrants from tho Officer in command of the Forces, authorizing the advance from the Treasury Chest of £1,426 2s. 7d. for pay of Militia, Military Settlers, and friendly Tribes at Taranaki for the month of October, and £1,380 2s. 6d. for the month of November. My Lords desire to call the attention of Mr. Cardwell to these further advances, as they apprehend

TO THE GOVERNOR OF NEW ZEALAND.

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A.—No. l

that the Despatch No. 54, of the 36th July, 1865, instructing the Governor to discontinue the system of advances from the Treasury chest, must have been received in the Colony at the time when these sums were advanced, and they cannot but express their surprise at the departure from those instructions. I am, &c, Sir Frederick Eogers, Bart., &c. Geo. A. Hamilton.

No. 22. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P. to Governor Sir George Grey, K.C.B. (No. 13.) Downing Street, 26th January, 1866. SIR, — (Eeceived at Wellington, 23rd April, 1866.) I have received your Despatches Nos. 136, 139 and 140, of the 10th November. I have read with great pleasure, in the Speech with which you prorogued the General Assembly, your reference to the gallantry of Her Majesty's Colonial and Native Eorces, and the expression of your belief that the measures recently adopted affecting Her Majesty's subjects of the Native race are such as, if well administered, to ensure that then interests will be zealously guarded by the Legislature of New Zealand. In considering the address of the Legislative Council, together with the Eesolution of the House of Eepresentatives, and the Memoranda of your Ministers, I have no Avish to revive the discussion with respect to the Weraroa Pa; and to the detention of the five Eegiments until after the fall of that Fortress. But you will take care that there is no misunderstanding with your Ministers, or with either branch of the Legislature, as regards the intentions of Her Majesty's Government so positively conveyed to you in former Despatches. We cannot consent that the execution of those intentions should wait for or in any way depend upon the decisions of the next Parliament of New Zealand. We entirely adhere to the policy embodied in the Eesolutions of the New Zealand Assembly in December, 1864; and we entertain no doubt that you will have acted upon our express directions for the immediate removal of the troops, with the single reservation of an option to yourself and your Government of retaining three battalions and one battery, on the terms expressed in my Despatch of the 27th November. Whatever measures therefore your Advisers may recommend to you for the defence of the country must be taken under a thorough sense of the responsibility winch attaches to their decisions. The New Zealand Government have occupied large tracts in the Waikato and at Taranaki, with ample notice that the permanent defence of those occupations will not be maintained by an Imperial Eorce. They have now the power of retaining in the Colony a portion of Her Majesty's Imperial Troops equal to the largest number of rebels avlio have ever been stated to be in arms against them. And this option is offered upon terms proposed in conference with a former Colonial Treasurer, and adopted by the Imperial Parliament. If the Government and Legislature of New Zealand do not avail themselves of the opportunity thus afforded them, the responsibibty must rest with them. I have, &c, Governor Sh G. Grey, K.C.B. EDWAED CAEDWELL.

No. 23. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P. to Governor Sir George Grey, K.C.B. (No. 14.) Downing Street, 26th January, 1866.. SIR, — (Eeceived at Wellington, 23rd April, 1866.) I have the honor to acknowledge the receipt of your Despatch No. 147, of the 14th November, transmitting copies of your correspondence to the 13th 10

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October, with Major-General Chute, as to the arrangements for the return of five regiments to England. After the positive instructions which have been given to you by me, and to tbe Officer Commanding the Troops, by the Secretary of State for War, I cannot suppose that the difficulty of obtaining transport will have been allowed, for want of timely arrangements, to cause any unnecessary delay. With regard to your recommendation that a part of the Eoyal Artillery and the Mibtary Train serving in New Zealand should be sent home, and MajorGeneral Chute's reply : " That no authority had yet been received from the " Secretary of State for War for the return of any part of these corps to Europe," I have to inform you that in Eebruary last Lord de Grey directed LieutenantGeneral Cameron to send home, in addition to the five battalions of Infantry tben ordered home, any portion of the regular troops remaining in the Colony which the Colonial authorities might Avish to be withdrawn. By the present mail Lord de Grey has called upon Major-General Chute to report his reasons for not having acted, upon the receipt of your recommendation, in accordance Avith this instruction. I have, &c., Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 24. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sh George Grey, K.C.B. (No. 15.) Downing Street, 31st January, 1866. SIR, — (Eeceived at Wellington, 6th May, 1866.) In my Despatch No. 12, of the 15th of February, 1865, I acquainted you that steps had been taken to pay to the Colonial authorities at Auckland the sum of £1,141 3s. 10d., claimed for the maintenance of mibtary convicts from the year 1853 to 1863. I now have the honor to transmit to you a copy of a letter from the Board of Treasury, dated the 17th of January, conveying their Lordships' authority to make provision in the Parliamentary Estimates this year for a sum of £587 9s. 2d. due to the Colony for supplies to Imperial military convicts in the Colonial prisons from the Ist of January, 1864, to the 30th of June, 1865. But you will see that their Lordships consider it proper that this sum should not be actually paid over to the Colonial Government, but should be credited to the Treasury Chest Account, in part diminution of the large sum due to that account by the Colony. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

treasury, fan. 17,1866.

Enclosure in No. 24. Mr. Childers to Sir F. Eogers. Sir, — Treasury Chambers, 17th January, 1866. With reference to the letter of this Board of the 9th February last, relating to a claim made by the Government of New Zealand for the maintenance of certain military convicts in the civil prisons of the Colony, I am directed by the Lords Commissioners of Her Majesty's Treasury to transmit to you the enclosed copy of a letter from the AVar Office, relating to a further claim that has been preferred by the Colonial Government of New Zealand, for the sum of £587 9s. 2|d., for rations and clothing supplied to military convicts in the Colonial prisons from tho Ist of January, 1864, to the 30th of June, 1865. I am desired to request that you will state to Mr. Secretary Cardwell that their Lordships consider that provision should be made in the Estimates, for convict services in the Colonies for the sum of £587 9s. 2d. for this expense. At the same time I am desired to transmit the enclosed copy of a letter, which this Board has addressed to the War Office, intimating their Lordships' opinion that this sum should not be paid over to the Colonial Government, but should be credited to the Treasury Chest Account, in part diminution of the large amount due to that account by the Colony. I have, &c, Sir F. Eogers, Bart., &c. Hugh C. Childers.

A :Kb. :s

Sub-Enclosure 1 to Enclosure in No. 24. Sir E. Lugard to tho Assistant Secretary to tho Treasury. Sir— Fall Mall, 28th December, 1865. I am directed by Earl de Grey and Eipon to transmit, for the information of the Lords Commissioners of Her Majesty's Treasury, Ihe accompanying statement, shewing the particulars of a claim, amounting to £587 9s. 2Vd., preferred by the Colonial Government of New Zealand for rations and clothing supplied to military convicts in the Colonial prisons from Ist January, 1864, to the 30th June, 1865. I am, at the same time, to request that you will move their Lordships to cause any orders they may have to give in reference thereto to bo forwarded to the officer in charge of the Treasury Chest, and that this Department may bo informed of the steps taken, with a view to a communication on the subject being made to the General Officer commanding in New Zealand. I have, &c, The Assistant Secretary to the Treasury. Edward Lugard. Sub-Enclosure 2 to Enclosure in No. 2A. Mr. Childers to Sir E. Lugard. Sir, — Treasury Chambers, 17th January, 1866. With reference to your letter of the 28th ultimo, I am directed by the Lords Commissioners of Her Majesty's Treasury to acquaint you, for tho information of Earl de Grey and Eipon, that their Lordships are prepared to admit the claim that has been preferred by the Colonial Government of New Zealand for the sum of £587 9s. 2*-d., for rations and clothing supplied to military convicts in the Colonial prisons from the Ist of January, 1564, to the 30th of June, 1865. They aro not, however, disposed to direct the officer in charge of the Treasury Chest to pay over that sum to the Colonial Government while such large sums are due by the Colony to Her Majesty's Government. They consider that the amount should be paid from the vote for Convict Services in the Colonies, in which provision will be made for it, to the Treasury Chest Account, in part diminution of the amount due to that account by the Government of New Zealand. I have, &c, Sir E. Lugard, X.C.8., &c. Hugh C. E. Childers.

No. 25. Copy of a DESPATCH from the Eight Hon. Edavaud Cardavell, M.P., to Governor Sir George Grey, K.C.B. (No. 18.) DoAvning Street, sth February, 1866. Sir, — (Eeceived at Wellington, 6th May, 1866.) With reference to my Despatch No. 96, of the 26th September, 1864, to which I have received no reply, I transmit to you a copy of a letter from the Board of Admiralty, stating that another application has been received from the officers of Her Majesty's ships employed on the New Zealand Station for pecuniary allowances to enable them to meet the increased expenses of their vessels. I request that you will bring this matter again before your Eesponsible Advisers. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

AdmiraSir, Jan. 26,18GC.

Enclosure in No. 25. Mr. Eomaine to Sir F. Eogers. Sir,— Admiralty, 26th January, 1866. With reference to my letter of tho 23rd of September, 1864, on the subject of a pecuniary allowance being made to the officers of Her Majesty's ships employed on the New Zealand station, to enable them to meet the increased expenses of their messes, I am commanded by my Lords Commissioners of the Admiralty to acquaint you that they have received a further application from the officers on that station, pointing out the impossibility of their maintaining their messes upon the established contribution under the existing circumstances of the Colony. lam therefore to request that you will move Mr. Secretary Cardwell to bring the subject to the early notice of the Colonial Government of New Zealand, with a view to the officers in question obtaining such relief as the Legislature may think right to grant. I have, itc, Sir F. Eogers, Bart., &c. W. G. Eomaine.

41

TO THE GOVERNOR OF NEW ZEALAND.

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No. 26. Copy of a DESPATCH from the Eight Hon. Edavard Cardavell, M.P., to Governor Sh George Grey, K.C.B. (No. 23.) Downing Street, 23rd February, 1866. SIR, — (Eeceived at Wellington, 6th May, 1866.) In reply to your Despatch, No. 149, of the 14th November last, I have the honor to transmit to yon, for your information and guidance, copy of a letter from the Lords Commissioners of the Treasury, from which you will perceive that their Lordships are Avilling to extend temporarily to the Tahitian mails the privilege conceded to the New Zealand mails, and that they have signified to the Postmaster-General their consent to the proposed exemption from postage in faA'or of the Tahitian mails, subject to the same conditions as those required in the case of the mails for New Zealand. I have, &c., Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

Feb. 10,1866.

Enclosure in No. 26. Mr. CniLDERS to Sir Frederic Eogers. Sir,— Treasury Chambers, 19th February, 1866. I am directed by the Lords Commissioners of Her Majesty's Treasury to acquaint you, for the information of Mr. Secretary Cardwell, that my Lords have had before them your letter of the 23rd ultimo, transmitting copy of a letter from the Governor of New Zealand, requesting, with reference to a proposal from tho Governor of Tahiti, that the steamers running between New Zealand and Panama should call at Tahiti carrying mails to and from that place, to bo informed whether tho Imperial Government will permit Tahitian mails to be conveyed by the West India Eoyal Mail Steamer on the same terms as the mails for New Zealand and Australia. The terms in question were laid down in their Lordships' Minute of the 4th November, 1863 (a copy of which was communicated to the Colonial Office in a letter from this Board dated 7th of the same month), and are to the effect that, at the outset of the new Mail Service between New Zealand and Panama, and temporarily, the Imperial Government will waive its claim to receive any portion of the Sea postage for the conveyance of tho mails between Southampton and Colon; it being understood, however, that my Lords aro at liberty at anytime to discontinue this privilege, and to.require payment for the service rendered, should such a course appear to them to be expedient. I am to state that my Lords will not object to extending the same privilege temporarily to the Tahitian mails, and they have accordingly signified to the Postmaster-General their consent to the proposed exemption from postage in favour of those mails, subject to the same conditions as have been laid down in respect to tho New Zealand mails. I am, &c, Sir F. Eogers, Bart, &c. Hugh C. E. Guilders.

No. 27. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 24.) Downing Street, 24th February, 1866. SIR, — (Eeceived at Wellington, 6th May, 1866.) With reference to my Despatches Nos. 57, of the Ist of August, and 87, of the 31st of October last, I transmit to you a copy of a further letter from the Chairman of the London Committee of the Northern Association of New Zealand, together with the answer which I have caused to be returned to it. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

M .Gtmiame, ■Tut. 23,1866.

Enclosure 1 in No. 27. Mr. Grahame to Mr. Secretary Cardwell. Committee Eoom, 23 Great St. Helen's, City, E.C., Sir,— 23rd January, 1866. It will be in your recollection that I addressed to you a letter in April last, on behalf of the London Committee of tho Northern Association of New Zealand, in relation to the petitions praying for a separate Government for the Province of Auckland, and with reference to a full report on the same, which Sir George Grey stated his intention to transmit by the next mail to that by which he forwarded the petitions. It now appears from the answer to a question put in the House of Eepresentatives, that "no such report was in existence." The Committee of the Association have resolved to take the liberty, on the part of their constituents, to address you again upon tho subject of

A.—No. 1.

their petitions. A comparison of the number of signatures to the several petitions with the statistics of the Colony will show r that they are signed by at least nine-tenths of the adult males of the Province of Auckland. The Governor of the Colony expressed himself in favour of the object of the petitioners, stating that unless by some such arrangement as that proposed by the petitioners, he saw little hope of putting an end to the troubles that afflict the Colony. The Committee, therefore, beg to submit to your impartial judgment whether it is just or expedient that the prayers of the Colonists of Auckland so fully expressed by themselves, and favourably considered by Sir George Grey, should be overridden by a Ministry consisting entirely of Southern Colonists who have no interest in the affairs of Auckland, unless in making them subservient to their personal ambition; and to pray, on behalf of our fellow Colonists, that their petitions may bo referred to a Select Committee of Parliament, to take evidence, and report on the necessity of constituting Auckland a separate Colony. By direction of the Committee, I have, &c, The Eight Hon. Edward Cardwell, M.P. W. S. Grahame, Chairman. Sub-Enclosure to Enclosure 1 in No. 27. Mr. Forster to the Secretary of the London Committee of the Northern Association of New Zealand. Sir,— • Downing Street, 12th February, 1866. I am directed by Mr. Secretary Cardwell to acknowledge the receipt of your letter of the 23rd ultimo, in which, on behalf of the Londdti Committee of tho Northern Association of New Zealand, you again call attention to the petitions sent home from that Colony, praying for a separate Government for tho Province of Auckland. I have to inform you in reply, that no report was received from the Governor on the subject of these petitions, and that, after waiting some months in anticipation of its arrival, Mr. Cardwell informed Sir G. Grey, on the 26th July last, that Her Majesty's Gofernment agreed with his Advisers in regarding the Colony as a whole, and assumed, in the absence of any report from him to the contrary, that he concurred in this opinion. Sir George Grey was at the same time authorized to assure his Advisers that the Colonial Government would receive the support of the Imperial Government in maintaining the unity of the Colony, and was instructed that the petitions for separation were to be answered in that sense. Sir George Grey has not made any report upon the subject since receiving these instructions. I have, &c, The Secretary to the London Committee W. E. Forster. of the Northern Association of New Zealand.

No. 28. Copy of a DESPATCH from the Eight Hon. Edward Cardavell, M.P., to Governor Sir George Grey, K.C.B. (No. 25.) DoAvning Street, 26th February, 1866. SIX, — (Eeceived at Wellington, 6th May, 1866.) I have again to call your serious attention to my repeated inquiries on the subject of the advances for pay and rations to Colonial Forces drawn from the.Commissariat Chest. So long ago as last July, when I first heard that these advances had been renewed, I instructed you that they must be discontinued; and in October, Avhen I learnt from the War Department that you understood that a new arrangement had been substituted for the very proper arrangement made by your Ministers, but not carried into effect, for the monthly liquidation of these accounts at the Sub-Treasury in Auckland, I explained to you that this new arrangement could not be approved by Her Majesty's Government. There has not been time for your reply to my Despatch of October to be received in this country : but I have been surprised not to hear from you that no further increase in the debt of the Colony was in progress, and not to receive the A riews of your Ministers with respect to the ultimate liquidation of the debt. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 29. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 27.) Downing Street, 26th February, 1866. g IR (Eeceived at Wellington, 6th May, 1866.) I have to acknowledge the receipt of your Despatches numbered and dated as in the margin. I have communicated these Despatches to the Secretary of State for War. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL. n

Dec. 5, No. 153. Dec. 5, No. 154. Dec, 9, No. 155. Dec. 11, No. 156. Dec. 12, No. 157. Dec. 12, No. 158. Dec. 14, No. 161. Dec. 14, No. I(i2. Dec. 15, No. 162.

43

TO THE GOVERNOR OF NEW ZEALAND.

A.—No. 1.

No. 30. Copy of a DESPATCH from the Eight Hon. Edavard Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 30.) Downing Street, 26th March, 1866. Sir, — (Eeceived at Wellington, 23rd May, 1866.) I have the honor to acknowledge the receipt of your Despatch No. 15, of the 13th of January, forwarding for my information a copy of a Memorandum from your late Eesponsible Advisers, which you had omitted to send home, relative to the Waitotara purchase. The enclosures to my Despatch of the 23rd of December will have enabled you to report upon this question. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 31. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 32.) . Downing Street, 26th March, 1866. SIR, — (Eeceived at Wellington, 23rd May, 1866.) I fonvarded for the consideration of the Lords Commissioners of the Treasury copies of your Despatches of the Numbers and dates noted in the margin, relating to the state of the Account betAveen the Colonial and Home Governments, and the issue of advances from the Commissariat Chest. I have the honor to transmit for your information a copy of the letter Avhich has been received in reply, and, in accordance Avith the wish expressed by their Lordships, I have to request that in concert with your Eesponsible Advisers, you will appoint some person on behalf of the Colony, who may be authorized to examine the accounts with Commissary-General Jones, if that officer shall still be in the Colony AA'hen this Despatch arriA'es, in order that some definite agreement may be arrived at as to the precise liabibties incurred by the Colony. I have, &c, Governor Sh George Grey, K.C.B. EDWAED CAEDWELL.

No. 1, Jan. 1, 1866. No. 6, Jan. 8, 1866. No. 9, Jan. 12, 1860. No. 11, Jan. 13, 1860. No. 13, Jan. 13, 1806. Treasury, March 21, 1866.

Enclosure in No. 31. Copy of a Letter from Mr. Hamilton to Sir F. Eogeks. Sir, — Treasury Chambers, 21th March, 1866. I have laid before the Lords Commissioners of Her Majesty's Treasury your letter of the 22nd instant, together with tho copies of Despatches therein transmitted from the Governor of NewZealand, relative to tho state of the Account between the Colonial and Home Governments, and the issue of advances from the Treasury Chest. I am to stato for the information of the Secretary of State, that, as regards the question raised in these papers as to the capitation rate for HerJVlajesty's Troops in New Zealand, my Lords do not at present express any opinion. As regards the accounts between the Colonial and Home Governments, in respect of advances made from the Treasury Chest in New Zealand, as to which explanations have been furnished to the Governor by his Eesponsible Advisers, my Lords arc not prepared to admit the correctness of the statements contained in these papers. They adhere to the figures specified in the Account laid before Parliament in tbe present session, upon which a Supplementary Vote of £764,829 has been taken, for the purpose of making good theso advances to the Treasury Chest and to Army Grants. In order however that some definite agreement may be arrived at with the Colonial authorities, as to the precise liabilities incurred by the Colony in respect of these advances, my Lords propose to instruct Commissary-General Jones to put himself in communication with any person who may bo deputed by the Colonial Government for that purpose, and to go minutely into the several items comprehended in this account —both claims and counter-claims (exclusive of the capitation charge), reporting to this Board the result which may be arrived at. My Lords attach great importance to this being done before tho Commissary-General leaves tho Colony, and I am to recruest that you will move Mr. Cardwell to instruct Governor Sir George Grey accordingly. I have, &c, Sir Frederic Eogers, Bart. G. A. Hamilton.

44

DESPATCHES PROM THE SECRETARY OF STATE

TO THE GOVERNOR OF NEW ZEALAND.

45

A.—ffo. 3,

No. 32. Copy of a DESPATCH from the Eight Hon. Edward Cardavell, M.P., to Governor Sir George Grey, K.C.B. (No. 33.) Downing Street, 26th March, 1866. SIR, — (Eeceived at Wellington, 23rd May, 1866.) I have the honor to acknowledge the receipt of your Despatch No. 2, of the Ist of January, on the subject of the differences Avliich existed between Sir D. Cameron and yourself in respect of the capture of the Weraroa Pa. It is only necessary that I should refer you, in reply, to my Despatch No. 5, of the 20th of that month, informing you of the decision Avliich had been arrived at by Lord de Grey and by myseb', that the time had arrived for closing the painful discussion. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 33. Copy of a DESPATCH from the Eight Hon. Edward Cardavell, M.P., to Governor Sir George Grey, K.C.B. (No. 34) DoAvning Street, 26th March, 1866. SIR, — (Eeceived at Wellington, 23rd May, 1866.) I have received Avith great satisfaction your Despatches of 13th January, Nos. 10 and 14, in which you report to me the successful result of the operations on the West Coast, by which the fanatics and rebel Natives avlio had murdered messengers of peace, and other inoffensive people, were defeated by Her Majesty's Forces under Major-General Chute, Avith but trifling loss on our side; and the details of the action betAveen Her Majesty's Colonial Forces, European and Native, under Major Fraser, on the Wairoa Eiver, near Napier, in Avliich the Colonial Forces behaved with great gallantry, and defeated the enemy Avith considerable loss. I learn with great pleasure that you are able to say that, from the active measures now taken, the whole West Coast of the Island Avill shortly be placed in a state of entire security, and beg you will assure Major-General Chute and the officers and men who have been thus engaged, that Her Majesty's Government have not failed to appreciate the services they have rendered. I much regret the loss of Captain Hussey Avhile gallantly taking part in the operation so successfully conducted by Major Fraser. I have also received a telegraphic message from you, Avliich left Galle on 15th instant, and Avhich lam informed Avould lea Are Melbourne about 24th February, to the effect that General Chute's operations had ended; that they had been entirely successful; that the whole country was quiet, except a feAV murders near Opotiki; that pacification AA ras proceeding in all quarters ; and that certain regiments of Her Majesty's Troops were in course of embarkation. This telegraphic message is, I presume, in anticipation of Despatches which I shall receive by the next mail; and I need scarcely say that it is in the highest degree satisfactory. In your Despatch of 13th January, No. 13, you refer to the instructions which I had addressed to you in October on the subject of the appropriation to be made by the New Zealand Assembly for such Troops as your Ministers might desire to retain in the Colony; and you inform me that your Eesponsible Advisers are of opinion that, in the present financial state of New Zealand, it would be impossible for the Colony to pay that contribution; that under these circumstances you will proceed to place at the disposal of Major-General Chute Her Majesty's Forces in NeAV Zealand, with a view to their early removal from the Colony ; but that you will advise Major-General Chute only to alloAV Her Majesty's Forces to leave the Colony at the rate of one regiment every two months. You justly observe that it would be my earnest wish to avoid any serious difficulties from arising under your Government; but, at the same time, it is necessary to observe that Her Majesty's Government are pursuing a course in the removal of the Troops which has not only been declared by them to the Imperial Parbament, but has been formally adopted by the Assembly of New Zealand in the Eesolutions of December, 1864. My Despatch of November 27th will have

DESPATCHES EROM THE SECRETARY OE STATE

Jk.—TSo. I

46

enforced in greater detail the intentions of Her Majesty's Government; and you will have learnt from Major-General Chute that he has been instructed by the Secretary of State for War to carry these hitentions into effect as rapidly as he can obtain transport for that purpose. I have only, therefore, once more to repeat, that my Despatch of November 27th must be regarded by you as conveying the decision to Avliich Her Majesty's GoA rernment adhere. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 34. Copy of a DESPATCH from the Eight Hon. Edavard Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 35.) Downing Street, 26th March, 1866. Sir, (Eeceived at Wellington, 23rd May, 1866.) I haA"e received your Despatch No. 1, of the Ist January, and one from Major-General Chute to the Secretary of State for War, from AA^hich it appears that some advances, not indeed A~ery large in amount, but still directly at A'ariance with my instructions, had again been made from the Military Chest for the payment of Colonial Troops, a4z. : —• £ s. d. 251 5 0 Estimated amount of pay for European and Native Force at Wanganui, for NoA rember, 1865. 1,426 2 7 Estimated amount of pay for Militia, Military Settlers, and friendly Natives, at Taranaki, for December, 1865. 1,594 10 0 Ditto ditto for local forces at Wanganui, for December, 1865. It does not appear what course has been pursued with respect to supplies of rations. The instructions contained in the Circular of the Treasury of October, 1857, to which you refer, do not authorize a system of advances " except under circum- " stances of pressing _nd extraordinary emergency;" and I pointed out to you in my Despatch of 26th September last, Avhat indeed was already evident, that payment of the ordinary expenditure of the Colonial Forces is not a case falling Avithin this exception. The exception Avas intended to meet some sudden and unexpected danger, Avliich could not have been foreseen by the Colonial GoA'ernment. It does not extend to operations like those undertaken by you at Taranaki, for which all pecuniary provision ought to have been made beforehand; and indeed was professedly made by the promise that all advances should be repaid monthly at the Colonial Treasury at Auckland. I will not again refer to the disputes between yourself and General Cameron. They have been productive of great mischief to the Colony, but they do not afford any justification for the breach of tbe engagement made by your Government, to Avliich I have just referred, —nor for the renewal of this system of advances, —still less for its continuance after the receipt of my Despatch of July. In another Despatch of the present date I have conveyed to you the wishes of Her Majesty's Treasury, and my instructions, Avith respect to an examination of the account by some person appointed on behalf of the Colony, and the Commissary-General, and I haA*c now positively to instruct you that all advances of pay and rations are prohibited. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 35. Copy of a DESPATCH from the Eight Hon. Edward Cardaatcll, M.P., to Governor Sir George Grey, K.C.B. (Ko. 36.) Downing Street, 26th March, 1866. jj} IR (Eeceived at Wellington, 23rd May, 1866.) I have the honor to transmit to you for the information and guidance of

A.—No.

yourself and of your Responsible Advisers, copies of a correspondence between the War Office and this department, respecting the withdrawal of the Company of the Royal Engineers now serving in New Zealand. I have, &c, Governor Sir George Grey, K.C.B. EDWARD CARDWELL.

WarOfficc.Mareh o lB^ ar( , h ~^ 1866.'

Enclosure 1 to No. 35. Copy of a Letter from Sir E. Liigahd to Sir F. Eogers. Sir,— War Office, 22nd March, 1866. I am directed by the Secretary of State for War to transmit to you, for the consideration of Mr. Secretary Cardwell, the enclosed copy of a memorandum from the Deputy Adjutant-General of Eoyal Engineers, in which it is proposed to withdraw the 6th Company of Eoyal Engineers, without relief, from New Zealand. Tho Marquis of Hartington is desirous of being informed whether, in Mr. Cardwell's opinion, this Company, which is not referred to specifically in the instructions with regard to the withdrawal of the Troops, addressed to Sir George Grey, can be spared. Should it be tho wish of the Colonial Government to retain it, or should a corresponding body of Eoyal Engineers havo to bo sent out to relieve it, Lord Hartington presumes that provision will not fail to be made by the Colonial Legislature for defraying the entire cost. I have, &c, Sir Frederic Eogers, Bart. Edavard Lugard. Sub-Enclosure to Enclosure 1 in No. 35. Memorandum for the Quartermaster-General. Horse Guards, 16th March, 1866. With reference to that portion of the Memorandum from this department, dated 10th November last, recommending fjhat the 6th Company at present serving in New Zealand, should, during the ensuing year, be relieved by the 24th Company from England, tho Deputy Adjutant-General of Eoyal Engineers has the honor to submit for the favorable consideration of His Eoyal Highness the Field Marshall Commanding in Chief, that in consequence of the very pressing demands for men of the Corps, and as the greater portion of the Eoyal Troops are proposed to be withdrawn from that Colony, that the 6th Company should be brought home as early as practicable, and not be replaced by another from England. 11. F. Keaxe, Lieut.-Colonel, D.A.G.,E.E. lin/>lAom>/_ 9 in XT_r_ Q X

X-llClUSlLre -j ill ±\o. 00. Copy of a Letter from Sir F. Eogers to the Uxder Secretary of State for War. Sir,— Downing Street, 24th March, 1866. I am directed by Mr. Secretary Cardwell to acknowledge the receipt of your letter of the 22nd instant, stating that the Marquis of Hartington would wish to be informed whether the detachment of Eoyal Engineers now stationed in New Zealand can be spared, or if not, whether a corresponding body should be sent out to relievo it. I am to acquaint you in reply, that as it appears from the last Despatches received from Sir George Grey, copies of which have been forwarded to you, that the Colonial Government have refused to make provision for the payment of tho Troops at the rate of £40 a head, in accordance with the conditions laid down by Her Majesty's Government, Mr. Cardwell is of opinion that instructions should be sent to Major-General Chute by the mail of the 26th instant, to despatch the Engineers to England by the earliest possible opportunity which may present itself of procuring the means of transit for them, unless it should so happen that before the receipt of those instructions the local Government had actually provided for and. were paying the £40 a head, in which case it might be left to Sir George Grey to retain them until he had an opportunity of communicating on the subject with the Home Government. A communication to this effect will be made to Sir George Grey by the mail of the 26th. I have, &c, F. Eogers. The Under Secretary of State for War.

No. 36. Copy of a DESPATCH from the Eight Hon. Edavard Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 37.) Downing Street, 26th March, 1866. SIR, — (Eeceived in Wellington, 23rd May, 1866.) I have the honor to acknowledge your Despatches No. 7, of Bth January, in which you say, —" in compliance with the recommendation of my Eesponsible " Advisers, I haA re the honor hereAvith to transmit a petition from the Auckland 12

47

TO THE GOVERNOR OF NEW ZEALAND.

A.—No. 1,

48

DESPATCHES FROM THE SECRETARY OF STATE

" Provincial Council to Her Most Gracious Majesty the Queen, praying that the " Northern portion of these Islands may be constituted a separate Colony, under a " Constitution calculated to establish and maintain peace, order, and good govern- " ment." 2. "My Eesponsible Advisers, in transmitting this petition to me, have not " made any remarks upon it." And, No. 4, of 4th January, in Avliich you state that the opinion you originally conveyed to me in your Despatch of sth January, 1865, still remains unaltered, and proceed to say: "7. The opinion I hold is based " upon the necessity of strong, instantly acting, and entirely impartial Govern" ment, in a case in Avliich a European race, and a powerful and jealous semi- " barbarous race, are mingling together. A country so circumstanced requires " more GoA'ernment than a country in Avliich an ordinary state of things prevail. " I think that Avith such a Government, the happiness and peace of both races in " the Province of Auckland might be shortly ensured, and that the present " anomalous state of things avoulcl soon cease to exist there. I fear that without " some such arrangement as is proposed is carried out, a long time of difficulty " and trial lies before the Northern part of this Island, Avliich I should naturally " regret to see it subjected to, because I believe it to be unnecessary." I have felt myself fully entitled to conclude, since you abstained from fulfilling your intention of reporting to me upon this subject twelve months ago, that you had adopted the vieAVS of your former advisers ; and Avhen you conveyed to me their Memorandum of the 20th March, which closed with the statement that they assumed that the Colonial Government would receive the firm and unwavering support of the Imperial Goa eminent in maintaining the unity of the Colony,—-I told you in reply that I inferred your oavii opinion to be in unison Avith theirs, and I authorized you to answer in the same sense the petitions Avliich you had forwarded to me from Auckland. Several mails haA re intervened without my receiving any intimation of your views. But if your opinion has all tbe Avhile remained unaltered, it must, I think, haA'e occurred to you that, in the adoption of any such measures, there would be many obvious difficulties, and that I should be glad to knoAV your vieAvs on the possibility of overcoming them, and the mode by which they could be overcome. When the Crown and Parliament have deliberately established in any Colony the system of Eesponsible GoA'ernment, —when that Government has been in evistence several years, —when institutions general and local have grown up under it —private interests haA re arisen—and public debts have been contracted : it is no easy task to retrace these steps. Even if I were assured by the A'oice of the Legislature of NeAV Zealand that the public feeling of the Colony Avas in favor of such a course, many practical questions of great difficulty Avould require solution before I should be justified in assenting to it on the part of Her Majesty's Government. But in the present instance the presumption is that the public feeling of the Colony is adverse to any such proceeding. You inform me. indeed, that you transmit this Address by the advice of your present Ministers, but you do not state, and I do not infer, that they support its prayer. I request you Avill inform the Speaker that the Address of the Provincial Council of Auckland has been laid before the Queen, who has been pleased to receive it very graciously; but that you haA*e not been authorized to hold out any expectation that Her Majesty's Government would be able to advise a compliance with its prayer. Since, however, you think the happiness and peace of the Colony so much interested in the question, I haA'e too much regard for your opinion, so long cherished, and so deliberately entertained, not to consider whether it is not possible to attain the object Avhich you haA'e in view. If it be necessary, in your judgment, that a strong, instantly acting, and entirely impartial Government should be established in the Province of Auckland, to meet a case in which tAVO races, one European, the other jealous and semi-barbarous, are mingling together, and if your opinion be supported by that of the Province itseK, you will do well to submit for the consideration of your Eesponsible Advisers, the question—not whether a separate Colony should be created in the Northern Island by the dismemberment of New Zealand, —but whether the Legislature of New Zealand

TO THE GOVERNOR OF NEW ZEALAND.

A.—No. 1

49

might not, by local and temporary enactments, meet the necessity which you have declared to exist. It might indeed be found that, under the Constitution Act, those enactments required the aid of the Imperial Parliament, and in that case it would be the duty of Her Majesty's Government to give their attention to the subject; and you might be assured that measures recommended by you as calculated to promote the peace and welfare of the Province, acceptable to the Provincial Council, and adopted by the Legislature of New Zealand, would receive full consideration from the Government and Parliament of this country. I have, &c, Governor Sir George Grey, K.C.B. . EDWARD CARDWELL.

No. 37. Copy of a DESPATCH from the Eight Hon. Edavard Cardavell, M.P., to Governor Sir George Grey, K.C.B. (NO. 39.) Downing Street, 26th March, 1866. SIR,- — (Eeceived in Wellington, 23rd May, 1866.) I have the honor to acknoAvledge the receipt of your Despatches Nos. 165 and 166, of 30th December last, the former enclosing a report of an interview Avhich had been held with the Pai Marire Natives of the Waikato district; and the latter transmitting an account by Mr. Commissioner Mackay of a meeting between Wiremu Patene, a friendly Chief, and Bewi, Avitli other Chiefs of bis tribe. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 38. Copy of a DESPATCH from the Eight Hon. Edavard Cardwell, 31.P., to Governor Sir George Grey, X.C.8., (No. 42.) DoAvning Street, 17th April, 1866. Sir, — (Eeceived at Wellington, 29th June, 1866.) I have the honor to acknowledge the receipt of your Despatch No. 19, of the 20th of January, forwarding for my information, copies of tAA ro Eeports from Mr. Booth, containing a Aery satisfactory account of the state of the Native population of the Lake Taupo District. I have read these Eeports with much pleasure. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 39. Copy of a DESPATCH from the Eight Hon. Edavard Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 44.) Downing Street, 20th April, 1866. S IR} (Eeceived at AVellington, 29th June, 1866.) I have the honor to acknoAvledge the receipt of your Despatch No. 23, of the 13th of Eebruary, informing me of the decision which had been arrived at with regard to the manner in which the Natives accused of the murders of the late Mr. Eulloon and of Mr. Volkner should be tried ; and I have to express my entire concurrence in the views expressed by yourself and by your Eesponsible Advisers on this subject. I haA'e, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 40. Copy of a DESPATCH from the Eight Hon. Edward Cardavell, M.P., to Governor Sh- George Grey, K.C.B. (No. 46.) Downing Street, 24th April, 1866. g IR (Eeceived at WteHingtdn, 29th June,lS66.) With reference to the statement, which accompanied your Despatch No. 5, of the Bth January last, setting forth the losses sustained by the Colony

A.—No. 1.

50

DESPATCHES FROM THE SECRETARY OF STATE

under your Government from the repeated failures of the Peninsular and Oriental Company to fulfil their contract, and preferring a claim to compensation for the additional expense thereby entailed upon the Colony, I have the honor to forward to you the copy of a letter from the Lords Commissioners of the Treasury, to Avhom a copy of your Despatch was referred. I request that you will communicate a copy of this reply to your Eesponsihle Advisers. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

Treasnry, April 10,1866.

Enclosure in No. 40. Mr. Childers to Sir F. Sogers. Sir,— Treasury Chambers, 19th April, 1866. I am directed by the Lords Commissioners of Her Majesty's Treasury to acquaint you that my Lords have had before them your letter of the 27th ultimo, enclosing a copy of a Despatch from the Governor of New Zealand relative to the losses which it is alleged the Colony has sustained by the failure of the mail steamers of the Peninsular and Oriental Steam Navigation Company to-arrive in Australia in many instances on their appointed dates, and to tho claim of the Colony to be allowed compensation for the expense thereby entailed. I am to request that you will move Mr. Secretary Cardwell to cause the Government of New Zealand to be informed that my Lords very much regret the inconvenience which has been occasioned to the Colony by the delays referred to, but they are unable to entertain the application of the Colony for compensation, as the contract with the Peninsular and Oriental Steam Navigation Company does not admit of the Company being called upon to make good the alleged loss. I am to stale, moreover, that the Postmaster-General has reported to this Board that the delays in question hare, for the most part, in the opinion of his nautical advisers, been caused by circumstances beyond the control of the contractors. I am to add, in conclusion, that my Lords trust there will in future be little ground for the complaints now made, inasmuch as, by a recent alteration, the time allowed for the two voyages, outward and homeward, has, without any addition to the number of hours for the whole service, been so apportioned, by adding two days to the outward voyage and withdrawing two days from the homeward voyage, as to bring it into better accordance than heretofore with the requirements of navigation. I am, &c, Hugh C. E. Childers. Sir F. Eogers, Bart.

No. 41. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to GoA'ernor Sir George Grey, K.C.B. (No. 48.) Downing Street, 26th April, 1866. SIR, — (Eeceived at Wellington, 29th June, 1866.) By my Despatch of the 26th Eebruary last, No. 27, you were informed that copies of your Despatches, numbered 155, 156, 157, 158, 161, and 162, in reference to the matter in dispute between yourself and Sh Duncan Cameron, had been communicated to the Secretary of State for War. The Marquis of Hartington informs me that he concurs entirely in the opinion expressed by his predecessor Earl de Grey that it Avas desirable to put an end to this painful controversy, and that be does not propose to refer to Sir D. Cameron, or to make any comments of his own on your Despatches above referred to. I haA'e, &c, Governor Sh George Grey, K.C.B. EDWAED CAEDWELL.

No. 42. Copy of a DESPATCH from the Eight Hon. Edavard Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 49.) DoAvning Street, 26th April, 1866. SIR, —■ (Eeceived at Wellington, 29th June, 1866.) I have the honor to acknowledge the receipt of your Despatch No. 24, of the 13th February, conveying to me the detailed account of those successes of General Chute of which you had informed me previously by telegraph.

A.—No. 1.

I learn with the greatest satisfaction that you consider the result of these operations to have been the absolute defeat of the rebels at eveiy point, and the restoration of security to the West Coast; and request you will express to Major-General Chute the sense which Her Majesty's Government entertain of the gallantry and value of the services rendered by the officers and men of the forces, Imperial and Colonial, engaged in these operations. I rejoice to learn that by the A'igour thus displayed, the Avell-disposed Natives are greatly strengthened in their confidence in our poAver, Avhilst the strength and influence of the disaffected have been completely broken. You will, I am sure, have felt that such decisive success has properly invited you to consider whether the time had not arrived when the measures involved in military operations which have a future penal consequence, such as the destruction of buildings and of cultivations, may not have been discontinued Avith safety to your present operations, and with great advantage to the future tranquility and prosperity of the Island. I trust I shall soon learn that the salutary chastisement of the most obnoxious portion of the hostile Natives has been followed by measures of mercy calculated to vrean them from their hostile disposition, and to conciliate then feelings toAvards the Government, and to make them contented subjects of the British Crown. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 43. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sh- George Grey, K.C.B. (No. 52.) Downing Street, 26th April, 1866. Sir, — (Eeceived at Wellington, 29th June, 1866.) With reference to my Despatch No. 32, of the 26th ultimo, I have the honor to transmit to you for your own information, and for that of your Eesponsible Advisers, the accompanying copy of a letter from the Board of Treasury, enclosing copy of the instructions addressed by their Lordships to Commissary-General Jones, respecting the mode of computing interest on the advances made or cost of supplies furnished for the service of the Colony. I have, &c, Governor Sh George Grey, K.C.B. EDWAED CAEDWELL.

Treasury, April 25,1866.

Enclosure 1 in No. 43. Mr. Childers to Sir F. Eogees. Sir,— Treasury Chambers, 25th April, 1866. With reference to previous correspondence relative to the state of accounts between the Colonial Government of New Zealand and Her Majesty's Government, in respect of the advances in cash from the Treasury Chest and from Army Grants, I am desired by tho Lords Commissioners of Her Majesty's Treasury, to transmit, for the information of Mr. Cardwell, the enclosed copy of a letter upon the subject which my Lords have caused to be addressed to Commissary-General Jones, who has been instructed to prepare, in communication with a person to be deputed by the Colonial Government, a complete statement of the debt of the Colony to Her Majesty's Government. I have, &c, Sir F. Eogers, Bart., &c. Hugh C. E. Childers.

Enclosure 2 in No. 43. Mr. Childers to Commissary-General Jones. Sir,— Treasury Chambers, 25th April, 1566. With reference to the letter from this Board, of the 21th ultimo, instructing you to prepare, in communication with a person to be deputed by the Colonial Government, a complete statement of the debt of the Colony of New Zealand to Her Majesty's Government in respect of the advances in cash from the Treasury Chest and from Army Grants, and of the value of Stores and other supplies for the service of the Colony, I am desired by the Lords Commissioners of Her Majesty's Treasury, to acquaint you that, as regards the item of interest, the charge is to be computed at the rate of 4 per cent, per annum from the commencement of the quarter succeeding that in which the advances and supplies may have been made, and I am to add that credit is to be given to the Colony for the interest 13

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accrued from the Ist November, 1865, upon the sum of £500,000, being the amount of tho Bonds deposited by the agents of the Colony with the Bank of England on account of the debt of the Colonial Government. v I have, &c, Commissary-General Jones, New Zealand. Hugh C. E. Childers.

No. 44. Copy of a DESPATCH from the Eight Hon. Edavard Cardavell, M.P., to GoA'ernor Sir George Grey, K.C.B. (No. 53.) DoAvning Street, 26th April, 1866. Sir, — (Eeceived at Wellington, 29th June, 1866.) I have to acknoAvledge the receipt of your Despatch of the 2nd of February, No. 20, forwarding copies of tAvo letters addressed by Sir William Martin to the Colonial Minister for Native Affairs, on matters connected with the Government, and the interests of the NatiA'es in NeAV Zealand. I haA re read Sir William Martin's letters and the accompanying notes with great interest, and I cannot doubt that the knoAAdedge and forethought exhibited in these documents will secure for them that consideration which they eminently deserve. Her Majesty's GoA'ernment are not of opinion, hoAVCA'er, that the Home Government could profitably assume that responsibility, or require that delay to occur Avhich Avonld be involved in Sir William Martin's proposal that Acts affecting the Natives should be reserved for the signification of Her Majesty's pleasure. I haA'e, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 45. Copy of a DESPATCH from the Eight Hon. Edward Cardavell, M.P., to Governor Sh* George Grey, K.C.B. (No. 54.) Downing Street, 26th April, 1866. SIR, — (Eeceived at Wellington, 29th June, 1866.) In your Despatch No. 8, of 9th January, I received the Acts respecting Native affairs, of which the Titles are set forth in a Schedule to this Despatch. In revieAving these enactments, I shall have occasion on the one hand to recognize with pleasure the desire Avhich has been evinced by the Government and Legislature of New Zealand to bring the Maoris under the protection of British law, and to place them more and more upon the footing of Her Majesty's subjects of the European race; Avhile on the other hand, I shall be obliged to state why some of these measures cannot receive the entire approval of Her Majesty's Government. The Acts Nos. 11, 12, 25, and 71, form a Aery important body of legislation on Native affairs, and appear to have been devised with a sincere desire for the improvement of the Maoris, and their amalgamation witli the European population under British law. I feel indeed some apprehension lest by expressly extending the authority of the Supreme Court to all cases respecting the persons and property of the Maoris (No. 11 § 3), the Government of New Zealand may be found to have assumed a Avider responsibility than they may be able to discharge effectually ; and many of the other provisions of these laAvs will doubtless require great care and prudence in their application. But on the Avhole these measures are evidently intended to promote the most desirable of all public objects in New Zealand, the union of the two races under an equal GoA^ernment; and I am ready to believe that your own practical experience, and that of your Government and Legislature, must have enabled you to form a better judgment than Her Majesty's Government could arrive at in this country as to the mode in which that object may be accomplished. I observe with pleasure the constitution of a Commission of Inquiry as to the most expedient mode of defining a Native franchise and admitting the Maoris to the practical exercise and enjoyment of pobtical rights with others of Her Majesty's subjects, Avhich will consist mainly

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of Natives; and I anticipate much adA rantage from the arrangements made by the Act No. 71, for the ascertainment of Native titles and the opening of Native lands to direct purchase and leasing. Her Majesty will not be advised to exercise Her poAver of disalloAvance Avith regard to any of the foregoing Acts. I now proceed to consider the Acts No. 23, " Eor maintaining the Queen's " Peace Avithin certain districts of the Colony, and for charging the costs thereof "on such districts;" and No. 6G, "An Act to alter amend and continue the " NeAV Zealand Settlements Act, 1863." I will first address myself to the second of these Acts, No. 66. The NeAV Zealand Settlements Act of 1863, enabled the Colonial GoA'ernment then, or at any time thereafter, to confiscate any amount of land, Avhether belonging to loyal or disloyal persons, if only it were situated in a district in which any considerable number of Natives had, in the opinion of the Governor, been in rebellion. It provided a machinery for compensating innocent persons who Avere thus dispossessed ; but it absolutely disqualified the Court from awarding compensation to any person Avho should haA'e been guilty of any one of a certain number of offences, among Avhich Avas that of " comforting" a rebel, or refusing to surrender arms when required to do so by Proclamation. The most innocent persons therefore avlio had been or were bkely to be in the neighbourhood of any disturbance, were placed in a state of indefinite disquiet as to their lands ; and those avlio had been or might be guilty to the most A'cnial extent of participation in any insurrection, Avere rendered incapable, if their lands were among those taken for settlement, of receiving any consideration AvhateA'er from the Court. , The objections of Her Majesty's Government to this Act, and their apprehensions respecting the scheme of settlement AA'hich it Avas intended to found upon it, Avere expressed in my Despatch No. 43, of the 26th April, 1864. They considered that the duration of the Act should be limited to a definite period, and suggested the period of tAvo years from its enactment. They desired that the aggregate amount of forfeiture should be at once made knoAAm, and the exact position as soon as possible; that an independent Commission, not removable Avith the Ministry of the day, should he appointed to inquire what lands should be forfeited; that you yourself should be personally party to any confiscation, satisfying yourself that it Avas just and moderate ; and that the land of innocent persons should not be appropriated without their consent, merely because it Avas in the same district as rebel property, and because it AA yas required for European settlement, but only in case they had a joint interest with some guilty person, or in case of some puhlic necessity, as of defence or communication. Her Majesty's Government desired further that the proposed Courts should have the poAver of compensating not only persons absolutely innocent, but those AAliose guilt was not of such a character as to justify the penalty imposed on them. , The same Despatch also expressed the apprehensions entertained by Her Majesty's GoA'ernment that the policy of extensiA'e or indiscriminate confiscation, and still more of protracting the period during Avhich that confiscation Avas held in suspense OA'er the beads of the Natives, might have very disastrous results in intensifying disaffection —in prolonging the War —in destroying those germs of civilization which existed among the more advnnced of the Waikato trihes ; and if the insurgents Avere svsteinaticallA r or .renerallv excluded from their cultivated lands, and driven to less A raluable and less accessible situations—in converting that part of the Native population into desperate and intractable banditti. It Avas also suggested that if the proposed Settlements AA'ere too far adA'anced beyond the country already occupied, it might prove impossible to abandon them without discredit, or to protect them Avithout a disproportionate expense. With such observations as these, and subject to the requirements AA rhich I have described, the Act AA'as alloAved to remain in operation (though still subject to disalloAvance) because Her Majesty's GoA'ernment greatly relied on your own desire to guard the Natives from any unnecessary seA rerity, and on the conviction expressed by your Ministers that as this would be the first, so it would he the last occasion on Avhich any aboriginal inhabitant of Ncav Zealand Avould be deprived of land against his Avill.

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Shortly after you received the instructions conveyed in that Despatch, you changed your Eesponsible Advisers, and convened the Legislature of New Zealand; and the whole subject of Native policy, and of your relations to Her Majesty's Government in respect of that policy, Avas considered in the two Houses of your Legislature. The result AA ras the adoption of Eesolutions by which the Colony acknoAvledged the claim of the Imperial Government to exercise a reasonable control over pobcy upon which the restoration of peace must necessarily depend, so long as the Colony should be receiving the aid of British troops for the suppression of internal disturbances, but at the same time determined to make eA'ery possible effort to place itself in a position of self-defence against internal aggression, AA r'ith a view to accepting the alternative of the earliest possible withdrawal of the Imperial troops, thereby enabling Her Majesty's Government to issue such instructions as might permit the Governor to be guided by the recommendations of his Constitutional Advisers in Native as in ordinary affairs. This policy Avas accepted by Her Majesty's Government Avith entire satisfaction. At this juncture the Avar in the Waikato District had been successfully brought to a close, and you were about to commence the operations in which you have been since engaged in the District of Taranaki. By the measures adopted by your Government in consequence of your success in the Waikato District, the Lower Waikato tribes, those among AA'hom civilization was most advanced, and avlio have probably been on the whole the least guilty of the rebels, and most capable of being converted into thriving subjects of Her Majesty, haAre been driven from their lands, and are subsisting in different places more or less difficult of access. Their lands haA re been brought under the operation of the Act by proclamation, and some of them in the very heart of the Waikato country, I understand, to have been sold and occupied. The confiscations you have made have not been preceded by any independent Commission of Inquiry, though I am glad to observe that in the Waikato and other districts certain Commissioners are to be empowered to restore considerable portions of the confiscated lands to those Natives Avho Avish to settle upon them. As a consequence of your more recent successes in the District of Taranaki, extensive confiscations are announced on the West Coast of the Island, where, doubtless, the conduct of the Natives has merited a more signal chastisement than perhaps in any other portion of the Northern Island ; and large tracts of land haA'e been ceded, though I do not understand to AA rhat extent they have been actually occupied on the Eastern Coast. While the Act of 1863 has thus been carried into execution by the GoA rernment, it has been in some respects modified by the Legislature. Its duration has been (as I am noAV advised), effectually bmited to lavo years by an Act passed in the year 1864. By the Act now before me, it is made perpetual, but with a proA'iso that no confiscations shall be made after the 3rd December, 1867, four years from the date at which the original Act came into operation, and rather more than a year and a half from the date at Avhich I am writing. Einally, in cases where compensation is awarded, the mode of giving it is one which places the Maori receiving it in a position of dependence upon the discretion of those who compose the Government. The Colonial Secretary may at any time before judgment, elect that compensation is to be awarded, not in money, but in land—if awarded in money, it is to be paid in Treasury bills. If awarded, in land the amount is to be fixed by the Court. Whether given in land or in money the Governor is entitled to direct that such land or money shall be invested for the benefit of the parties entitled, in such manner and subject to such conditions as he shall think fit. This statement exhibits the position, as I understand it, in which the insurgents, or those Natives avlio oaati land in the neighbourhood of insurgents, will find themselves till the 3rd of December, 1867, after Avhich day (unless the law is further continued) forfeitures of land can no longer be declared. The Act, No. 23, for maintaining peace in Native districts, is a perpetual Act, and applies to friendly as well as to hostile districts. It provides that if any of the crimes specified in tiiis Act is committed in any Native district, and if in that or any other such district in which the offender is harbored, the Chiefs or inhabitants refuse or neglect to aid in his arrest, the Governor may, after certain formalities,

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confiscate and sell in any such district as much land as be thinks necessary for certain specific purposes, Avhich include the maintenance of magistrates and police, and the establishment and maintenance of hospitals. It Avould seem to follow that in any Native districts in Avhich the police arrangements arc insufficient for the preservation of order, occasions may be expected continually to arise on Avhich Government will proceed to confiscate land and sell it for settlement. It may be feared that a Government acting under such poAvers, with Avhatever forbearance and discretion, Avill be liable to lie much misunderstood by the persons against whom those poAvers are capable of being called into action ; and I cannot but be apprehensive that such a state of things aaill be calculated to aAvaken or keep ahve a feeling of distrust in the Natives. After what I haAre said it is almost unnecessary to point out that the state of things Avhich is established by these two laAvs, and the proceedings which have already taken place under one of them, are departures from the policy Avhich Her Majesty's GoA'ernment Avould have desired to have adopted had they remained as directly responsible as heretofore for the preservation of peace, and the maintenance of internal security in New Zealand. But in accepting the proposal of the New Zealand Government and House of Eepresentatives that the Imperial troops should be withdraAvn, Her Majesty's Government are in process of transferring that responsibility; and the repeated minutes of your Ministers have pressed upon me the importance of giving effect to this policy without delay. Under these circumstances Her Majesty's Government have not thought it right at present to advise that these Acts should be disalloAved, and trust that no circumstances Avill arise in the course of their execution, which will render it necessary for them hereafter to tender such advice. I entertain the earnest hope that in carrying into effect the measures to which I have referred, you and your Eesponsible AdAdsers will remember the great responsibility which attaches to the exercise of such extensive powers, and will use them with a forbearance calculated to remove the apprehensions they might otherwise excite in tbe minds of tbe Natives, and AAdth a prudence which will prevent their giving rise to future breaches of the peace of the Colony. You will clearly understand that if Her Majesty's Government have not adA'ised the disallowance of these enactments in their present shape it is because they have deliberately accepted the policy of the NeAV Zealand GoA'ernment and Legislature, and have determined in compliance with that policy to Avithdraw from tbe Colony the Imperial troops, and to leaA'e the Governor to be guided by the recommendations of his Constitutional advisers in Native as well as in ordinary affairs, wheneA rer the case does not involve Imperial interests or the honor of the Crown, adherence to treaties entered into by Her Majesty's Government, or other matters of an analogous kind. In conclusion, I will only repeat that I have seen with sincere satisfaction the present restoration of tranquility, and the adoption by your Government and Legislature of measures designed to bring the Native race within the pale and under the protection of British law; and that I trust that those measures which Her Majesty's GoA'ernment Avould not have thought it expedient to enact may be tempered in their practical execution by the forbearing and prudent spirit of your Government; and that the result of all these measures, as a whole, may be the closer union of the two races, and the general welfare of the Colony. I have, &c, EDWAED CAEDWELL. Governor Sir George Grey, K.C.B.

Schedule op Acts. No. 11. An Act to declare that the Maoris shall be deemed natural-born subjects of Her Majesty, and to declare that the jurisdiction of the Queen's Courts of Law extends over the persons and properties of all Her Majesty's subjects within the Colony. Passed 26th September, 1865. No. 12. An Act for the declaring certain rights of the aboriginal Natives of New Zealand, and for enabling the Governor to appoint a commission for certain purposes. Passed 26th September, 1865. No. 23. An Act for maintaining the Queen's peace within certain districts of the Colony, and for charging the cost thereof upon such districts. Passed 9th October, 1865. 14

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No. 25. An Act for the investment and application of moneys accruing to Maoris in certain cases. Passed 27th October, 1865. No. 66. An Act to alter amend and continue " The New Zealand Settlements Act, 1863." Passed 30th October, 1565. No. 71. An Act to amend and consolidate tho laws relating to lands in the Colony in which the Maori proprietary customs still exist, and to provide for the ascertainment of the titles to such lands, and for regulating tho descent thereof, and for other purposes. Passed 30th October, 1865.

No. 46. Copy of a DESPATCH from the Eight Hon. Edward Cardavell, M.P., to Governor Sh George Grey, K.C.B. (No. 56.) Downing Street, 19th May, 1866. Sir, — (Eeceived at Wellington, 28th July, 1566.) I haA'e the honor to transmit to you the annexed Order in Council confirming the reserved Act of the Legislature of NeAV Zealand, entitled " An Act to enable Provincial Legislatures to make Laws affecting Public Eoads and Watercourses," of Avhich a copy Avas transmitted in your Despatch No. 8, of the 9th of January last. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

Enclosure in No. 46. Copy of an Order in Council. At the Court at Windsor, the 9th day of May, 1866,— Present: The Queen's Most Excellent Majesty. His Eoyal Highness Prince Alfred. Lord President, Lord Clarence Paget, Duke of Somerset, Sir Georgo Grey, Baronet, Earl of Cork and Orrery, Mr. Chancellor of the Exchequer. Earl Eussell, Whereas by an Act passed in the Session held in the 15th and 16th years of Her Majesty's reign, entitled " An Act to grant a Eeprescntative Constitution to the Colony of New Zealand," it is amongst other things declared, that no Bill which shall be reserved for the signification of Her Majesty's pleasure thereon, shall have any force or authority within the Colony of New Zealand until tho Governor of the said Colony shall signify cither by speech or message to the Legislative Council and House of Eepresentatives of the said Colony, or by proclamation, that such Bill has been laid before Her Majesty in Council, and that Her Majesty has "been pleased to assent to the same: And whereas a certain Bill passed by the Legislative Council and House of Eepresentatives of the said Colony, entitled " An Act to enable Provincial Legislatures to make Laws affecting Public Eoads and Watercourses," was presented to the Officer administering the Government of the said Colony for Her Majesty's assent: And whereas the said Bill was reserved by the said Officer for tho signification of Her Majesty's pleasure thereon : And whereas tho said Bill so reserved as aforesaid has been laid before Her Majesty in Council, and it is expedient that the said Bill should be assented to by Her Majesty : Now therefore Her Majesty, in pursuance of the said Act, and in exercise of the power thereby reserved to Her Majesty as aforesaid, doth, by this present Order, by and with the advice of Her Majesty's Privy Council, declare Her assent to the said Bill. And the Eight Honorable Edward Cardwell. one of Her Majesty's Principal Secretaries of State, is to give the necessary directions herein accordingly. Arthur Helps.

No. 47. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sh George Grey, K.C.B. (No. 57.) Downing Street, 21st May, 1866. SIR, — (Eeceived at Wellington, 28th July, 1866.) With reference to my Despatch No. 47, of the 26th of April, I transmit to you a copy of a further letter from the London Committee of the Northern Association of Auckland, together with the answer which I have caused to be returned to it. I have, &c, Governor Sh George Grey, K.C.B. EDWAED CAEDWELL.

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Enclosure 1 in No. 47. Mr. Busby and Others to Mr. Secretary Cahdwei.t.. Sir,— London, 23, Great St. Helens, E.C., 3rd May, 1866. Tho London Committee of the Northern Association of New Zealand have read with much disappointment and concern the letter which by your directions Sir Frederick Eogers has addressed to them in reply to their letter of the 13th of April last, in reference to the Petitions from the Province of Auckland, praying for a separate Government for that Province, as essential to the peace and welfare of its inhabitants, and renewing the prayer of this Committee that Her Majesty's Government would favor tho appointment of a Parliamentary Committee to investigate the grievances of which the colonists of Auckland have for so many years complained in their petitions to the Queen and Parliament; and they have observed with equal concern the reply which you are reported to have made in the House of Commons to a question put by Mr. Adderley, in relation to the same subject. " Sir Erederick Eogers is desired to inform this Committee that their memorial has been transmitted to the Governor for his consideration, with the assistance of his advisers in the Colony, but that in the meantime Her Majesty's Government are not prepared to express an opinion favorable to any proceedings which might appear to indicate an intention of making organic changes in the constitution of New Zealand, not sanctioned by any expression of opinion on the part of the Government or of the Legislature of that Colony." With all the respect which is due to your high office as Her Majesty's Minister for Colonial affairs, this Committee on their own behalf, and in the name and on the behalf of their fellow colonists of the Province of Auckland most emphatically protest against such a mode of dealing with their petitions. One of the petitions which this Committee was requested to support was signed by no less than 9,182 persons, comprising nearly every male adult of the British population, which numbers less than 40,000 persons. Another petition is from the Auckland Provincial Council, the Local Legislature of that Province, and a third is from the Auckland Members of the General Assembly of the Colony. This Committee respectfully insist upon the indefeasible right of all these petitioners to have their petitions considered by Her Majesty's Supreme Government, on their own merits, and not upon the representations of persons who are avowedly " responsible ministers," not of the Crown, but of a majority of a House of Assembly, who are not representatives of the petitioners or of their Province, but of the colonists of other Provinces, who have interests separate from —not to say antagonistic to theirs. This Committee entirely repudiate the claim of such persons to interfere with the petitions of Her Majesty's.subjects of the Province of Auckland in any shape, much less to dictate whether they shall be governed according to the constitutional rights and free customs of British colonists, or in such form as may serve the ambitious aspirations of men from whose misgovernment the petitioners have already been made to suffer the most grievous injuries. To these men the colonists of Auckland owo no allegiance, and they are determined to a man no longer to submit to the dominion which they have been allowed to assume. This Committee —less in justification of their protest, or in explanation of the grounds upon which they have adopted it —than in the hope that you may be induced to reconsider their prayer to have the grievances of the Auckland colonists investigated by a Committee of Parliament, are desirous of respectfully submitting the following considerations. 1. That by having become British colonists, Her Majesty's subjects of the Province of Auckland have not forfeited any of the constitutional rights and privileges which are their birthright as members of the British Empire. 2. That the colonists of Auckland have never been surpassed by any other portion of British subjects in loyalty to the Crown. They have not only been willing to provide, but have always in their petitions expressed themselves desirous of providing a revenue to maintain the Queen's Government in that Province, if administered according to the ancient and approved precedents of Colonial Administration in settlements of British freemen, satisfied that such a Government is alone consistent with tho maintenance of their allegiance to the Crown, together with all such rights of self government as are compatible with a duo and necessary subordination to the Supreme Government of the Empire —and also that such a Government, if faithfully administered, is best calculated to maintain peace between them and their Maori fellow subjects, and to promote the well-being of both races. 3. That on the other hand this Committee consider that the causes of complaint which have called forth from the Province of Auckland so many petitions for redress during the last thirteen years were of a character far more grave than those which drove the early American Provinces to rebellion. The latter rebelled against being taxed by a Power to which they owed allegiance and from which they received protection. The former have been subjected to taxation by persons not their representatives, to whom they owed no allegiance, and who were incapable of affording them protection. These and other grievances were the result partly of the anomalous constitution of Government which was provided for the Provinces of New Zealand by the Act of 15 and 16 Victoria, chapter —; and partly by the abdication, by the Queen's Governors, of the functions of Government under the system which is called " Eesponsible Government." In illustration of these propositions, this Committee submit, first, with respect to the Constitution Act: — 1. That it was by an abuse of language that the Provinces of New Zealand have come to be designated as one Colony, seeing that no Colony of ancient or modern times was ever more distinct in all essential particulars from all other Colonies, than is each of the six Colonies planted in the New Zealand Islands from all the rest. 2. That the Colony of Auckland, with which this Committee are alone concerned, was settled under the sanction of Her Majesty's Government, which could have no other object than the welfare

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of the colonists, while all the Colonies to the south of tho Province of Auckland were settled by a company of speculators, whose object it was to make the welfare of the colonists subservient to their own personal ambition and aggrandisement. 3. That such a constitution of Government as was provided for the New Zealand settlements confederating six separate and distinct Provinces, each with its own local Legislature, under what is called a General Government and General Legislature, with powers to override the Legislature and Government of the Provincial authorities, is absolutely without precedent in the history of ancient or modern dependencies. Such a Government is in fact an imperium in imperio, having no legitimate functions, and being scarcely capable of action, unless by usurping the functions of sovereignty on the one hand ; or on the other hand, by encroaching upon the right of the Provincial authorities to deal with questions affecting the separate interests of their constituents. 4. It is also worthy of consideration that the New Zealand Constitution Act was avowedly (see Hansard's Debates) a hurried and imperfect measure, passed when " the Parliament was in a state of dissolution," and more or less unsatisfactory to every statesman who took part in the discussion. The following words may be cited from the speech of the Eight Honorable W. E. Gladstone —" Concurrent jurisdictions, I must confess, are to me subjects of apprehension and alarm. A concurrent jurisdiction in the business of legislation means uncertainty, conflict and confusion. The overriding of arrangements already made under authority deemed competent, by extraneous power, must ever lead to annoyance and angry feeling." But these and other obvious objections were overruled, on the ground, artfully represented by the leaders of the New Zealand Company's settlements, that those provisions of the Constitution Act which were deemed object ionahlc, were in accordance with the wishes of tho colonists; whereas the colonists of Auckland, who were equal in number to one-third of the whole British population of the six settlements were never consulted in the matter, and their Provincial Council has consistently protested and petitioned against it, from their first meeting to the present day. 5. That the subsequent conduct and language of the leaders of the New Zealand Company's settlements have made it plain that their object, in obtaining such a Constitution, was to create the most extensive possible machinery of Government, in order to provide sufficient scope for their statesmanship as tho founders and rulers of an infant nation —if not to make a profitable speculation of tho offices and transactions of Government —of which aspirations and speculations, the miseries of war, of which the colonists of Auckland have been the victims, and the load of taxation aud debt which threatens to overwhelm them, are the fruits. Secondly—With regard to the abuses of administration under which the colonists of Auckland have suffered, resulting from the system called " Eesponsible Government," this Committee will refer to no other example than what has occurred in relation to the petitions which form the subject of this communication. Tbe Governor, in a public Despatch addressed to your predecessor and dated, Auckland, sth January, 1865, stated his opinion, " That unless some such arrangement as is prayed for by the Provincial Council of Auckland is carried out, it will be impossible to bring to a satisfactory termination the difficulties prevailing in this country." But his " Eesponsible Advisers" having intervened with a Minute, couched in the following words: —" Ministers are of opinion that the division of New Zealand into two or three separate Colonies would dwarf the political intellect of the Colony, confining it to the consideration of narrow and personal interests,"—Sir George Grey chose to withhold or to suppress the full report which he had promised to forward by the next mail " upon the important question raised in the Petition "of the Provincial Council. Such a report might in all probability have relieved the colonists of Auckland from the burden of any longer affording the means of expanding the political intellect of the politicians of the New Zealand Company's settlements, and from being made subservient to their ambition at the expense of their own peace and prosperity. If, in witholding information upon a subject which involved the possibility of bringing to a satisfactory termination the difficulties prevailing in New Zealand, Sir Gcorgo Grey may be considered to have betrayed the trust committed to him by tho Queen's Commission, he only in this, as in other matters, fulfilled tho requirements of what is called "Eesponsible Governments," under which the Queen's Governor is made to disregard the obligations imposed upon him by his Commission and instructions under the Queen's Sign Manuel and signet, in order to become the tool of subordinate functionaries whom it is his duty to make " aiding and obedient " to himself in the administration of the Queen's Government. Finally—ln appealing to their rightful Sovereign against a Constitution and administration of Government which virtually makes them the subjects of a dominion incompatible with the dominion of Her Majesty, this Committee consider that the colonists of Auckland have sought to vindicate the Sovereign rights of their Queen as well as to procure the restoration of the constitutional rights and privileges of which they themselves have been deprived. But to them it is more than a question of Constitutional rights ; it is a question of life and death ; for as matters now stand they may at any time be involved in a fresh war with their Maori fellow subjects through the conduct of Colonial politicians who are themselves removed by hundreds of miles from the consequences of such a misfortune. All which is very respectfully submitted by your most obedient humble servants the London Committee of the Northern Association of New Zealand. James N. Busby, John C. Blackett, W. K. Grahame, Wm. S. Grahame. P. S. —In obedience to your request for another copy of tho pamphlet entitled " Precis of the case of tho colonists of Auckland," three copies of that pamphlet are herewith enclosed. The Eight Hon. Edward Cardwell, M.P., &c. Wm. S. Grahame.

TO THE GOVERNOR OE NEW ZEALAND.

59

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Enclosure 2 in No. 47. Copy of a Letter from the Under Secretary of State, Colonial Office, to Mr. Busby. Sir,— Downing Street, 15th May, 1866. I am directed by Mr. Secretary Cardwell to acknowledge tho receipt of the letter signed by yourself and other members of the London Committee of the Northern Association of Auckland, and dated the 3rd instant, with reference to the creation of the Province of Auckland into a separate Government. It is with regret that Mr. Cardwell has read the language which you have used respecting the Government and Legislature of New Zealand, whose authority you appear to repudiate; and he cannot but express his surprise that you should write as though you had forgotten that this Government and Legislature exist under the provisions of Acts of the Imperial Parliament. I am to add, that Mr. Cardwell has seen no reason to change the opinion which has already been conveyed to you by his desire. I am, &c., James Busby, Esq. W. E. Foster.

No. 48. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 58.) Downing Street, 24th May, 1866. SIR, — (Eeceived at Wellington, 28th July, 1866.) I haA'e the honor to acknowledge the receipt of your Despatch No. 25, of the 21st of Eebruary last, forwarding a copy of a letter which you had received from the chiefs of Eotorua and Taupo, begging you to pay their country a visit, and stating that, in compliance with the wishes of your Eesponsible Advisers, and in accordance with your own views, you had determined to avail yourself of the opening thus presented. I trust that this visit will be productive of favorable results. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 49. Copy of a DESPATCH from the Eight Hon. Edward Cardwell, M.P. to Governor Sh* George Grey, K.C.B. (No. 63.) Downing Street, 6th June, 1866. SIR, — (Eeceived at Wellington, 22nd August, 1866.) With reference to my Despatch No. 57, of the 21st of May, and to a previous communication on the subject, I have the honor to transmit to you a copy of a further letter from the London Committee of the Northern Association of New Zealand, together AAlth a copy of the reply. I have, &c, Governor Sir G. Grey, K.C.B. EDWAED CAEDWELL.

May 20, 1866.

"June 9, 1866.

Enclosure 1 in No. 49. Copy of a Letter from the London Committee of the Northern Association of New Zealand to Mr. Secretary Cardwell. Sir,— 23, Great St. Helen's, E.C., 29th May, 1866. The London Committee of the Northern Association of New Zealand have the honor to acknowledge the receipt, on the 21th instant, of Mr. Forster's letter of the 15th instant, in which they are informed, by your direction, that "it is with regret you have read the language this Committee have used respecting the Government and Legislature of New Zealand, whose authority we appear to repudiate," and that you " cannot but express your surprise that we should write as though we had forgotten that this Government and Legislature exist under the provisions of Acts of the Imperial Parliament; " and further, " that you can see no reason to change the opinions which have already been conveyed to us by your desire." While expressing their extreme regret that you should have arrived at such conclusions, this Committee think it necessary, in justification of what they have written, to submit that they had no intention to repudiate the lawful authority of the Government and Legislature of New Zealand; and that they were not unmindful that that Government and Legislature exist under the provisions of Acts of the Imperial Parliament. But they hope to be excused for doubting whether the action of that Government, of which they complain, can be justified by any provision contained in any Act of the Imperial Parliament relating to New Zealand, or in any other Imperial Statute. 15

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They have been unable to find any provision authorizing Sir George Grey to delegate his functions as Governor to any junta of the Queen's subjects, who may have influence enough to sway the votes of a majority of the House of Eepresentatives. They consider that such a delegation (even subject to the limitation that it shall not include what are loosely called "Imperial interests"), whether under the pretext of making tho subordinate functionaries of the Local Government responsible to a majority of the House of Eepresentatives, or under any other pretext, is a violation of the trust committed to the Governor by the Queen's Commission and Instructions under the Eoyal Sign Manual and Signet; and equally incompatible with his duty to the Crown, and to such of Her Majesty's subjects as live under his Government and arc entitled to the Queen's protection. They accordingly considered that in protesting against being subject to such an abuse of Government, they were manifesting their loyalty to the Crown, and their regard for the law. This Committee believe that every Act of Parliament is intended for the benefit and protection of such of Her Majesty's subjects as are affected by it; and they also believe in the disposition of tho Legislature to amend any Statute which may have failed in its object, and may have become a source of injury and oppression to any class of the Queen's subjects, instead of a provision for their benefit and protection. In this belief the Colonists of Auckland have, during the last thirteen years, continued to petition the Imperial Legislature for such an alteration in the Constitution, as would accomplish in their behalf the true objects of Government; and this Committee, considering that their petitions have been overlooked for so long a period, think they may be excused if they have urged, even with vehemence, an inquiry into the causes of the disorganization and rebellion under which the petitioners have suffered. All which is most respectfully submitted by your most obedient humble servants, the London Committee of the Northern Association of New Zealand. James Busby, Johx C. Blackett, W. K. Graham, Wm. S. Grahame. The Eight Hon. Edward Cardwell, M.P., &c, &c. Enclosure 2 in No. 49. Copy of a Letter from Mr. W. E. Forster to Mr. James Busby. Sir, — Downing Street, 9th June, 1866. I am directed by Mr. Secretary Cardwell to acknowledge the receipt of the letter signed by yourself and other members of the London Committee of the Northern Association of New Zealand, and dated the 29th of May, in reference to the erection of the Province of Auckland into a separate Government. I am, &c, James Busby, Esq. W. E. Forster.

No. 50. Copy of a DESPATCH from the Eight Hon. Edavard Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 65.) DoAvning Street, 20th June, 1866. Sir, — (Eeceived at Wellington, 22nd August, 1866.) I have received with much satisfaction your Despatch No. 31, of the 23rd of March, informing me of the results of the visits Avhich you had made to several places in the Northern Island. I trust that your proposed meeting with the tribes of Eotorua and the interior will have an equally beneficial result. I have, &c, Governor Sh George Grey, K.C.B. EDWAED CAEDWELL.

No. 51. Copy of a DESPATCH from the Eight Hon. Edwaed Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 68.) Downing Street, 25th June, 1866. Sir, (Eeceived at Wellington, 22nd August, 1866.) I transmit to you for your information a copy of a letter from the War Office, Avith a copy of a Despatch from Major-General Chute, having reference to the amount of Eorce to be stationed in NeAV Zealand, together with a copy of tbe letter addressed to the War Office in reply by my desire. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

June IG, 1866.

Juno fi, 1866.

TO THE GOVERNOR OF NEW ZEALAND.

A.—No. L

61

Enclosure 1 in No. 51. Copy of a Letter from Sir Edward Lugard to Sir Frederic Eogers. Sir— War Office, 16th June, 1866. With reference to your letter of the sth instant, on the subject of tho retention, under certain conditions, of one battalion of Infantry in New Zealand, I am directed by the Secretary of State for War to transmit to you, for tho information of Mr. Secretary Cardwell, the accompanying copy of a Despatch which, with its enclosures, has been received from Major-General Chute on the subject of the withdrawal of the Troops from that Colony. The Marquis of Hartington presumes that Major-General Chute may be informed, in reply to the inquiry contained in his Despatch, that he is right in assuming that he will be acting in accordance with the intention of Her Majesty's Government in retaining one battalion of Infantry, irrespective of any provision being made by the Colony for the prescribed payment on account of Troops, but contingent upon the contribution for Native purposes alluded to in your letter. I am to add that Lord Hartington would be glad to learn from Mr. Cardwell whether it is to be understood that the arrangement above referred to is intended to include the retention of a battery of Artillery in New Zealand, in order that the necessary instructions may be sent to Major-General Chute on the subject. I have, &c, Sir Frederic Eogers, Bart. Edward Lugard. Sub-Enclosure to No. 1 in No. 51. Copy of a Letter from Major-General Chute to the Secretary op State for War. (No. 155.) Head Quarters, My Lord, — Auckland, 7th April, 1866. With reference to your Lordship's Despatch No. 090-909, of the 26th January, 1866, aud also with reference to a letter received from Governor Sir George Grey, dated 17th January last, a copy of which was forwarded for your Lordship's information, in my letter of 7th March, No. 51-66, to tho Under Secretary of State, I have the honor to state that on the 17th ultimo, I addressed a letter to His Excellency (copy enclosed) for information as to whether the withdrawal of Her Majesty's Forces might now proceed more rapidly than at the rate of one Eegiment in every two months. Not having yet received any answer from His Excellency, I have now addressed a letter to him stating that in the absence of a reply I intend making arrangements for the withdrawal of all the Troops remaining ill tho country, after the embarkation of the first five Eegiments, at the rate of one in every two months ; but that I shall be glad to receive His Excellency's opinion as to whether the reduction may be made more rapidly. From your Lordship's Despatch of the 27th February, 1865, I gather that it is the intention of Her Majesty's Government to leave in New Zealand, one battalion, irrespective of any provision being made by the Colony for the prescribed payment on account of Troops ; but as no reference to this point has been made in recent instructions, I have to request that I may be informed whether I shall be acting in accordance with your Lordship's wishes in retaining the 2-18 th Eegiment, which is the last on the roster; and also whether any portion of the Eoyal Artillery or Eoyal Engineers are to be left in New Zealand. With regard to the Military Train, their departure at present would entail a serious expenditure for Civil Transport, which it would be difficult, if not impossible, to obtain for the supply of some of the distant posts ; but on receiving from His Excellency the Governor permission to withdraw the Troops from the outposts, I shall be enabled at once to arrange for the embarkation of this corps. I have, &c, The Eight Hon. the Secretary of State for War, T. Chute, War Office, London. Major-General.

Enclosure 2 in No. 51. Copy of a Letter from Sir F. Eogers to the Under Secretary of State for War. Sir,— Downing Street, 22ud June, 1866. I am directed by Mr. Secretary Cardwell to acknowledge the receipt of your letter of the 16th instant, forwarding a copy of a Despatch from Major-General Chute, and inquiring for the Marquis of Hartington's information : — Ist. Whether that officer is right in assuming that it is the intention of Her Majesty's Government that one battalion of Infantry should be retaiued in New Zealand, irrespective of any provision being made by the Colony for the payment of Troops, but contingent upon a contribution for Native purposes. 2nd. Whether one battery of Artillery was to be retained irrespective in like manner of provision being made for the payment of Troops. I am to state in reply that the instructions conveyed to Sir George Grey by Mr. Cardwell's Despatch of the 27th November, No. 97, a copy of which was forwarded to you in my letter of the same date, are to be taken as being in full force; and in order that there may not be any misapprehension on the subject, Mr. Cardwell desires me to restate the exact nature of tho arrangement to which those instructions refer, and which had been assented to by Mr. Eeader Wood on behalf of the Colony. Ist. That in consideration of the many circumstances connected with the presence of a large Native population, one Eegiment should be retained in the Colony at the cost of the Imperial Treasury, provided the Colony shall continue to pay out of Colouial Funds a sum of £50,000 for the especial benefit of that population.

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62

2nd. That any Troops beyond the one Eegiment that might be retained, the Colony should contribute a sum of Forty pounds a head for Infantry and Fifty-five pounds for 'Artillery. And the number that might be so retained was not to exceed three battalions of Infantry and one battery of Artillery. Mr. Cardwell thinks it very desirable that Major-General Chute should be informed by the next mail that he must guide himself accordingly, and that it will be his duty to send from the Colony as speedily as possible, unless the required provision has been made, every soldier, whether Infantry or Artillery, in excess of the one Eegiment, and that Eegiment also, unless he is informed by the Governor that Fifty thousand pounds per annum is devoted to Native purposes. Mr. Cardwell thinks that Major-General Chute should be reminded that he has instructed the Governor that the Troops retained in the Colony must be concentrated and not left in distant and isolated posts. As regards the Military Train, Mr. Cardwell sees no reason why it should not be sent home, as it now devolves upon the Colony to provide at its own charge the entire cost for inland transport. I have, &c, The Under Secretary of State for War. F. Eogers.

No. 52. Copi- of a DESPATCH from the Eight Hon. Edavard Cardwell, M.P., to Governor Sir George Grey, K.C.B. (No. 69.) Downing Street, 25th June, 1866. Sir, (Eeceived at Wellington, 22nd August, 1866.) I ha\'e the honor to acknoAvledge the receipt of your Despatch No. 8, of the 9th of January, forwarding authenticated copies of 75 public and 3 private Acts, passed by the General Assembly of NeAV Zealand during then last Session, together with a Eeport by your Eesponsible Advisers in explanation of the piwisions of those enactments. I have to inform you that Her Majesty will not be adAdsed to exercise her power of disalloAvance in respect of the following Acts :— No. 2.—An Act to continue "The Arms Act, 1860." (Temporary.) 11th August, 1865. No. 3.- —An Act to facilitate Leases and Sales of Settled Estates. 25th August, 1865. No. 4.—An Act to amend " The District Courts Act, 1855." 26th September, 1865. No. s.—An Act to authorize the Superintendent of the Province of Otago to surrender or reconvey, discharged from all trusts affecting the same, to Her Majesty the Queen, Her Heirs and Successors, certain Lands held by the said Superintendent upon certain Trusts. 26th September, 1865. No. 7. —An Act to grant a Pension to the Widow and Children of the late James Armitage, of Waikato, Esquire. 26th September, 1865. No. B.—An Act to amend " The Audit Act, 1858." 26th September, 1865. No. 10. —An Act to define the time when Acts of the General Assembly assented to by the Governor shall come into operation. 26th September, 1865. No. 13.—An Act to confer on the Legislative Council and the House of Eepresentatives of Ne\v Zealand certain Privileges, Immunities, and Powers. 26th September, 1865. No. 14. —An Act for making temporary provision for the Bepresentation of the Mining Population of the West Coast of the ProAdnce of Canterbury in the Provincial Council of that Province. 30th September, 1865. No. 15. —An Act to make provision for the appointment of Trustees of the Wellington Hospital EeseiYes. 26th September, 1865. No. 16.—An Act to amend " The Diseased Cattle Act, 1861." 26th September, 1865. No. 17.—An Act to amend " The Public Domains Act, 1860." 26th September, 1865. No. 19. —An Act to regulate the Pension of William Lott HoAvard. 26th September, 1865. No. 20. —An Act to define A\ rhat number of Members of the Legislative Council shall be present to constitute a Meeting for the exercise of its powers. 26th September, 1865.

TO THE GOVERNOR OF NEW ZEALAND.

63

A.—No. 1

No. 21. —An Act to amend the Law relating to the remedy for Injuries done by Dogs to Persons and to Sheep and other Animals. 9th October, 1865. No. 22. —An Act for the prevention of Accidents and the punishment of Offences on Eailways. 9th October, 1865. No. 24. —An Act to remove doubts as to the interpretation of " The Eeligious Charitable and Educational Trusts Act," and to enable Diocesan Synods of the branch of the United Church of England and Ireland in New Zealand to manage and regulate Church Property within their respective Dioceses. 9th October, 1865. No. 26. —An Act to limit the liability of Mining Companies. 27th October, 1865. No. 27. —An Act for enabling the General Assembly to obtain the opinion of the Supreme Court on Private Estate Bills. 9th October, 1865. No. 28.-—An Act to amend " The Building and Land Societies Ordinance, Session XL, No. 11, and "The Building Societies Amendment Act, 1856." 27th October, 1865. No. 29. —An Act to grant a Retiring Allowance to Edward Mayne, Esquire, Sergeant-at-Arms of the House of Eepresentatives. 27th October, 1865. No. 30. —An Act to authorize the removal of Prisoners from one Gaol to another. 30th October, 1865. No. 31. —An Act to amend "The Deeds Eegistration Amendment Act, 1863." 30th October, 1865. No. 32. —An Act to authorize the GoA'ernor to issue Commissions respecting certain Exchanges in the Town of New Plymouth. 30th October, 1865. No. 34. —An Act to regulate the establishment of New Provinces in the Colony of New Zealand. 30th October, 1865. No. 35.—An Act to amend " The LaAV Practitioners Act, 1861." 30th October, 1865. No. 36. —An Act to confer on Superintendents of Provinces certain powers with regard to the appointment of Constables within such Provinces. 30th October, 1865. No. 37. —An Act to authorize the construction, establishment, and maintenance of Electric Telegraph Communication, and to provide for the regulation thereof. 30th October, 1865. No. 38.- —An Act to alloAV the Distillation, Eectifying and Compounding of Spirits in NeAV Zealand. 30th October, 1865. No. 39. —An Act to provide for the formation of Jury Lists in newly settled districts. 30th October, 1865. No. 40. —An Act to grant additional facilities for depositing Small Savings at Interest, Avith the Security of the Government for the repayment thereof. 30th October, 1865. No. 41. —An Act to facilitate the Construction of Water Eaces upon the Gold Fields, and otherAvise to amend the Gold Eields Act of 1862 and 1863. 30th October, 1865. No. 42. —An Act to provide for the issue of Certified Copies in certain cases of lost Depasturing Licenses or Leases. 30th October, 1865. No. 44. —An Act to remove doubts as to the poAvers of Provincial Legislaturesto create Municipal and other Corporations. 30th October, 1865. No. 45. —An Act to amend the Law relating to Masters and Apprentices.. 30th October, 1865. No. 46. —An Act for amending " The Debtors and Creditors Act, 1862." 30th October, 1865. No. 47. —An Act to grant a Pension to the unmarried Sisters of the late Colonel Nixon, of the Auckland Militia. 30th October, 1865. No. 50. —An Act to provide for the Eegistration of 'Contracts of Bailment of Sheep and Cattle in certain cases. 30th October, 1865. No. 51. —An Act to establish Courts of Petty Sessions of the Peace of Civil and Criminal Jurisdiction in the Colony of NeAV Zealand. 30th October, 1865. No. 54.—An Act to amend "TherNew Zealand Loan Act, 1863," and "The Bate of Interest Act, 1864." 30th October, 1865. No. 55.—An Act to confer certain Powers and Authorities on the Corporation 16

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of the City of Dunedin, and other ToAvns and Places incorporated under an Ordinance of the Superintendent and ProA'incial Council of the Province of Otago, intituled " The Otago Municipal Corporations Ordinance, 1865." 30th October, 1865. No. 56. —An Act to amend the Law relating to, the Administration of the Estates of deceased persons in certain cases. 30th October, 1865. No. 57. —-An Act to provide for the Protection of Certain Animals in New Zealand. 30th October, 1865. No. 58.—An Act to amend " The Debentures Act, 1864." 30th October, 1865. No. 61. —An Act to amend " The Miners' Eepresentation Act Amendment Act, 1862." 30th October, 1865. No. 63. —An Act to declare that in Actions and Suits in Avhich judgment or decree is recoA'ered or obtained against the Superintendent of any Province, no Execution, Attachment, or other Brocess shall issue to satisfy or enforce such judgment or decree. 30th October, 1865. No. 64. —An Act to confirm an ■ arrangement entered into between the Superintendent of the Province of Wellington, and the Trustees of the Presbyterian Church at Wellington, for the acquisition of a Piece of Land for public purposes. 30th October, 1805. No. 67. —An Act for the Naturalization of certain persons in the Colony of NeAV Zealand. 30th October, 1865. No. 69. —An Act for allocating to certain Provinces in New Zealand certain charges incurred for the permanent advantage of such ProAdnces. 30th October, 1865. No. 70. —An Act to amend the Eepresentation Acts, 1860 and 1862. 30th October, 1865. No. 73. —An Act for extending the Jurisdiction of Ecsident Magistrates in Criminal Cases, and for amending " The Eesident Magistrates' Jurisdiction Extension Act, 1862." 30th October, 1865. No. 74. —An Act to control the issue of Public Moneys. 30th October, 1865. No. 75. —An Act to apply a sum of Money out of the Ordinary EeA'enue to the Service of the year ending the 30th day of June, 1866. 30th October, 1865. private acts. No. 1. —An Act to enable John Cracroft Wilson, Esquire, C.8., to make and maintain a Dam across the Eiver Heathcote, at a place called Duck's Nest, in the Province of Canterbury. 30th October, 1865. No. 2.—An Act to enable John Cracroft Wilson, Esquire, C.8., his heirs, executors, administrators, and assigns, to maintain a Dam across the BiVer Heathcote, in the Province of Canterbury, and to divert the Avaters of the said Eiver. 30th October, 1865. No. 3. —An Act to make provision for enabling certain persons to construct a Eaihvay between the Toaviis of Picton and Blenheim, in the Province of Marlborough. 30th October, 1865. I have, &c, Governor Sir George Grey, K.C.B. EDWAED CAEDWELL.

No. 53. Copy of a DESPATCH from the Eight Hon. the Earl of Carnarvon to Governor Sir George Grey, K.C.B. (No. 3.) Downing Street, 24th July, 1866. SIR, — (Eeceived at Wellington, 30th September, 1866.) I have the honor to inform you that Her Majesty Avill not be advised to exercise Her poAver of disalloAvance in respect of the following Acts of your Government, copies of Avliich were fonvarded in your Despatch No. 8, of the 9th January, 1866. No. 33. —An Act to authorize Eree Grants of Land to Military Settlers and Members of the Colonial Defence Eorce in the Province of Hawke's Bay. 30th October, 1865.

TO THE GOVERNOR OF NEW ZEALAND

65

A.—No. 1

No. 49. —An Act to amend the Waste Lands Eegulations of the Province of Canterbury. 30th October, 1865. No. 59. —An Act to Eegulate the sale, letting, disposal, and occupation of the Waste Lands of the CroAvn Avithin the Province of Southland. 30th October, 1865. No. 60. —An Act to repeal Clause 15 "Waste Lands Act, 1858 " so far as it affects the Province of Taranaki, and also to repeal Section 6, Clauses 37, 38, and 39 of " The Eegulations for the Sale and Disposal of the Waste Lands of the CroAvn within the ProAdnce of New Plymouth," proclaimed 20th October, 1855, and confirmed by the said " Waste Lands Act, 1858." 30th October, 1865. No. 65. —An Act to authorize the Leasing for depasturing purposes of Crown Lands in the Province of Nelson. 30th October, 1865. No. 72. —An Act to amend the Waste Lands Eegulations of the Province of Wellington. 30th October, 1865. I shall transmit to you by the next mail an Order of Her Majesty in Council confirming the Act No 48, to amend " The "Waste Lands Act, 1858," so far as it affects the Province of Hawke's Bay, Avhich was reserved by you for the signification of Her Majesty's pleasure. I have, &c, Governor Sir George Grey, K.C.B. CAENAEVON.

No. 54. Copy of a DESPATCH from the Eight Hon. the Earl of Carnarvon to Governor Sh George Grey, K.C.B. (No. 5.) Downing Street, 25th July, 1866. Sir, — (Eeceived at Wellington, 30th September, 1866.) I have the honor to inform you that Her Majesty Avill not be advised to exercise Her power of disallowance in respect of the Act of your Government No. 6, of 29th Victoria, entitled " An Act to amend the Panama Mail Service Act, 1864," of which a copy accompanied your Despatch No. 8, of the 9th January last. I have, &c., Governor Sir George Grey, K.C.B. CAENAEVON.

No. 55. Copy of a DESPATCH from the Eight Hon the Earl of Carnarvon to Governor Sir George Grey, K.C.B. (No. 6.) Downing Street, 26th July, 1866. SIR, — (Eeceived at Wellington, 30th September, 1566.) I have to acknoAvledge the receipt of your Despatches, as noted in the margin, having reference to matters of account betAveen the Colonial and Imperial Treasuries. I have forwarded Copies of your Despatches to the Treasury, but you Avill have learnt from Mr. CarchveH's Despatch No. 32, of the 26th March, that it Avas the Avish of Her Majesty's GoA'ernment that, as recommended by your Advisers, some person should be appointed on behalf of the Colony avlio might be authorized to examine these accounts Avith Commissary-General Jones, in order that some definite agreement might be arrived at as to the precise amount of the liabilities of the Colony to the Imperial Treasury. I have, &c, Governor Sir George Grey, K.C.B. CARNARVON.

18G6. No. 12, May 12. No. 43, May 1 _. No. 45, May 12.