A—No. 2.

You inform me however that the question is " left for future adjustment between the Mother Country and the Colony," which implies that the Colonists are at liberty to dispute it. And from the inadmissible principle laid down or indicated in Mr. Eichmond's Memorandum of the 10th July, and Mr. Gisborne's of the 19th June, it is obviously expected that they will do so. I must express my regret that you assented to these views. It is quite true that you were authorized to direct advance's from the Commissariat Chest. But in exercising that discretion it was I think your duty not only to have avoided any pledge on the part of Her Majesty's Government that the money advanced should not be reclaimed, but to secure that if reclaimed it should be repaid by the Colony. I have now to instruct you not to make any further advances to the Colonial Government from the Commissariat Chest in respect to the expenses;of Secret Service money, or for the maintenance of any Local Force, except on a distinct pledge given by the government of the Colony that all such advances will bo repaid from Colonial funds so far as the Imperial Government shall require repayment. I am, &c, Newcastle. Governor Gore Browne, &c, &c, &c.

No. 7. COFT OF A MEMORANDUM BY MR. STAFFORD. Colonial Secretary's Office, Auckland, 4th May, 1861. Ministers have had under their consideration the Duke of Newcastle's Despatch, No. 13 of the 26th January last, referring to the payment and allowances granted to the Taranaki Militia, in which the Governor is instructed not to make any further advances from the Commissariat Chest in respect of the maintenance of any Local Force, except on a distinct pledge given by the Government of the Colony that all such advances will be repaid from Colonial funds, so far as the Imperial Government shall require repayment. Ministers are unable to give any general pledge to that effect, which would comprise the cost of the maintenance of all Local Forces, which the Governor of the Colony may from time to time call out for actual Service in the field, or for Garrison duty—as no funds have been appropriated by the Legislature which could be pledged to that extent. It is however absolutely necessary, in the present critical circumstances of the Colony, that the Taranaki Militia should not bo immediately dismissed ; and if the current cost of that Force will not be provided from the Commissariat chest without a pledge of repayment, if required by the Imperial Government, Ministers will give that pledge for the present ; and will submit to the Legislature, in the approaching Session, the whole question of the maintenance of Colonial Forces for the future. While giving this pledge, Ministers at the same time request that it may be represented to the Secretary of State, that the Colonial Forces have been called out for service by the Governor in exercise of the Royal Prerogative, to assist Her Majesty's regular Forces in maintaining Her Majesty's authority, at a time when the small number of regular Forces in the Colony made such assistance especially valuable . and the Taranaki Militia have, for more than a year, been entirely at the disposal of the Officer Commanding Her Majesty's Forces, —have on all occasions taken part in the Military operations,—and have at all times been available for duties which would otherwise have been required to be performed by Troops maintained by Imperial funds. E. W. Stafford.

Expenses of Militia*

No. 8. Copt of a DESPATCH from his grace the duke of Newcastle to governor gore BROWNE, C.B. Downing Street, Ist February, 1861. I have the honour to transmit to you for your information a copy of a letter from the War Office enclosing correspondence between that Department and the Horse Guards, having reference to the relative rank of Officers of the Colonial Militia and those of the regular Army, when serving & I enclose copies of that correspondence, so far as it is addressed to any authority in this country and references sufficient to identify the different letters so far as the correspondence passed in New' Zealand, and is, therefore, probably within your knowledge. I have, &c, Newcastle. Governor Gore Browne, C.8., &c, &c, &o.

New Zkai-and. (No. 17). 2Srd January, 1861.

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