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I have therefore ordered the " Miranda" and " Harrier" to Sydney forthwith, and have directed Captain Jenkins to transfer the charge of the New Zealand division to Commander Cator of the " Fawn." I am sorry to be compelled to reduce the Naval force in New Zealand, at a moment which, for what I know to the contrary, may possibly be a critical one, but with the land forces that will remain at your Excellency's disposal, I trust that the interests committed to your charge may not suffer by their withdrawal. I have, &c, His Excellency Sir George Grey, X.C.8,, F. Beauchamp Seymour, &c., &c, &c. Commodore.

Enclosure 2 in No. 2. GOVERNOR SIR GEORGE GREY TO COMMODORE SEYMOUR. Government House. Auckland, 8th February, 1862. Sir, — I have ihe honor to transmit for your information the copy of a Despatch I have addressed to the Secretary of State, in relation to the withdrawal at the present critical moment of the entire Naval force (with the exception of the ''Fawn" undergoing repairs) from the New Zealand Islands and in explanation of the embarrassments which have arisen from this cause, and with a view of having if possible some better arrangements laid down tor the future, upon which matters it seems desirable that the Home Government should have the benefit of your opinion and advice. I have, &c, Commodore Seymour C. B. G. Grey. H. M. S. Pelorus, Sydney.

Enclosure 3 in No. 2. GOVERNOR SIR GEORGE GREY TO CAPTAIN JENKINS, R.N. Government House, Auckland, 31st January, 1862. Sir,— I have had the honor of receiving letters from Commodore Seymour, informing me that he had ordered the " Miranda" to proceed to Sydney forthwith, and that these orders were couched in such stringent terms that your commission would be in danger were you to disobey them; these orders being based on the supposition that England is at this moment involved in a war with the Northern States of America, I can only say that I understood from Commodore Seymour's letter of the 31st October, that both the "Pelorus" and " Miranda" would have been here at the end of December or the beginning of this month, and that, relying on this, I ordered the execution of a service which might have brought on, and still may bring on a renewal of hostilities, if any imprudent and unexpected steps are taken. The sudden removal of the " Miranda" from this station may therefore have the most serious and prejudicial effects on British interests, as I think so large and very hurried a diminution in our Naval force will lead the Natives to believe that we are threatened with some great disaster, aud will probably encourage them to recommence operations. If a war does unfortunately take place with America, this will be the only Colony in this part of the world, which will, at the same time, be threatened with attacks by an interior and exterior enemy; and I cannot but regret that, in making preparations for a possible war with America, it should have been thought necessary to run so very serious a risk of again bringing on a war in this country —where all seemed quietly settling down—which risk, some delay and previous warning might most materially lessen. It will be for you to decide whether, under these circumstances, you will delay here until you can again hear from Commodore Seymour, or at least until the repairs now going on in the " Fawn" —the only remaining vessel—have been completed. I have, &c, Captain Jenkins, E.N., G. Grey. H.M.S. "Miranda," Senior Officer, &c, &c, &c.

Enclosure 4 in No. 2. MEMORANDUM FOR HIS EXCELLENCY. Auckland* 6th February, 1862. On returning to His Excellency Commodore Seymour's letter of the 13th January, 1862, Ministers cannot refrain from placing on record their regret at what appears to them to have been a very hasty and premature act. In consequence of the advance of the troops to the Waikato, and their employment in the construction of a Military road to that river, it has been necessary to watch the temper of the Natives with vigilance, and it has been impossible to foretell from day to

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