A—No. 6

the shore to the powder vessels, I am unaware what may be the resources of the local Government, but I should have imagined that it was possible to build a magazine capable of containing the powder now afloat, in three months from the time of its being commenced. I am sorry that your Excellency should think that the presence of the " Pelorus" is the harbour of Auckland is indispensably necessary for the security of New Zealand. I cannot coincide with your views, but in deference to them, I will postpone mv projected cruise until after the arrival of the "Cordelia." I have, &c, His Extellency Colonel T. Goreßrowne, C.8., F. Beauchamp Seymour, &c, he., &c. Commodore.

No. 2.

COPY OF A DESPATCH FROM GOVERNOR SIR GEORGE GREY TO HIS GRACE THE DUKE OF NEWCASTLE. Auckland, Bth February, 1862. My Lord Duke, — I have the honor to transmit to Your Grace the copy of a letter I received from Commodore Seymour, dated Melbourne, 13th January, 1862, informing me that in all probability England is engaged in a war with the Northern States of America, and that under these circumstances he had no alternative left but to assemble as large a foice as he could concentrate at Sydney in readiness to commence operations against the American trade, should the next mail bring a confirmation of the report he had received. 2. In another letter the Commodore also acquaints me that the Admiralty have issued an order which will effectually prevent a Naval Brigade from again serving on shore in these Islands. 3. In pursuance of the intentions thus intimated to me, all the Naval force has been withdrawn from New Zealand with the exception of the " Fawn," the repairs of which cannot be completed before the end of next week, and which, even then, is ordered not to leave Auckland or its vicinity until after the arrival of the next mail, whilst her Commander is instructed not to land any men for operations on shore. 4. I enclose for Your Grace's further information the copy of a letter T addressed to the Senior Naval Officer, in reference to the orders the Commodore had found it necessary to issue, as also a copy of a Memorandum by the New Zealand Ministers on the same subjects. 5. My own opinion in relation to these matters is that very serious embarrassments have arisen from the extremely sudden withdrawal of the Naval force from these Islands, which might have been avoided if a delay of even a few days had been allowed. 6. I think, if the Governor here is to be liable to have a force withdrawn at a moment's notice, and without being in any way consulted on the subject—upon the co-operation of which he had so certainly reckoned as to have entered on important operations —that it would be better not to station such a force here ; for its sudden withdrawal whilst delicate operations are in progress, and which would never have been undertaken if the presence of that force had not been relied on, may lead to bad results ; whilst the Natives, not being able to comprehend such sudden reductions of our force, are apt to be led by it to entertain renewed hopes of being able eventually successfully to oppose us, and to believe that we are in difficulties elsewhere. 7. I also think it should be distinctly understood here, whether the Admiralty do, under all circumstances, prohibit Naval Officers and seamen from serving on shore, or whether, under circumstances of great ur^encv, they will, as heretofore, be allowed to do so. I can only say, that if in the former wars Naval Officers and seamen had not been permitted to serve on shore in New Zealand, a large and sad loss of life and property must have been sustained by Her Majesty's subjects. 1 have, &c, G. Grey. His Grace the Duke of Newcastle, &c, &c, &c.

No. 12,

Enclosure 1 in No. 2. COMMODORE SEYMOUR TO GOVERNOR SIR G. GEEY. "Pelorus/'Hobson's Bay, 13th January, 1862. Sib,— I h;ivc the honor to inform your Excellency that news of (he utmost importance has reached Australia, viz., that in all probability England is at this moment involved in a war with the Northern States of America. Unfortunately the intelligence of the occurrences which would lead to such a state of affairs appears to have reached England subsequently to the departure of the mail of the 26th Nov., and to have been conveyed by telegram to Alexandria, and tlience to Suez, just as the steamer was leaving for Point de Galle. Under these circumstances I have no alternative left me but to assemble as large a force as I can concentrate at Sydney, in readiness to commeuce operations against the American trade should the mail due here on the 12th proximo bring confirmation of the report which has just reached me.

5

THE MILITARY DEFENCE OF NEW ZEALAND.