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A—No. Ga

MILITARY. No. 1. copy or a DESPATCH from governor gore browne to his grace the duke or NEWCASTLE. Government House, Auckland, New Zealand, 22nd December, 1860. Mr Lord Duke, —■ I have the honor to acknowledge receipt of Despatch No. 65, of the 12th September last, signed by Sir G. C. Lewis, in which I am informed that Her Majesty's Government has agreed to the proposal made by the Colonial Government of a contribution at the rate of £5 per man for 'the Troops employed in New Zealand. In reply I beg to forward for your Grace's information copy of a Memorandum by my Responsible Advisers, in which they state that they are prepared to act on this arrangement at once, and that the accounts will be adjusted accordingly as soon as they can be ascertained. I have, &c, T. Gore Browne. His Grace the Duke of Newcastle.

No. 139. Military and Financial. Vide Blue Book A ppenili x 1861, A—No. 2, [>. 4.

No. 2. COFT OP A DESPATCH FROM HIS GRACE THE DUKE OF NEWCASTLE TO GOVERNOR GORE BROWNE. Downitig Street, I9th July, 1861. Sir,— I have received your Despatch No. 139, of the 22nd of December, apprizing me that youf Government are prepared to act at once on the arrangement by which Her Majesty's Government proposed that, commencing from the Ist of April, 1858, the Colony should furnish a contribution at the rate of Five pounds (£5) a man for the British Troops employed in New Zealand. Pending the discussion of the question, no provision has been made in army estimates for the charges of barracks in New Zealand since the Ist March, 1858. The Secretary of State for War has pointed out tome that in the adjustment of accounts the Colony will now be entitled to take credit for any general expenditure of Colonial money on barracks since that date, whilst on the other hand it must be debited, as explained in the Despatch to which your Government have signified their assent, with the cost of the barracks at New Plymouth. Under the new arrangement, it will devolve on the War Department to provide for the charges of barracks in common with all other Military expenses, but it is too late to insert the item in the Army Estimates of this year. The War Department proposes to meet this special case by paying to the order of the General commanding the Troops out of the New Zealand contribution such sum as he may deem requisite for Barrack expenditure, provided that the same shall not exceed Five thousand pounds (£5000) in all. In pursuance of this view, I have the honor, at the request of the Secretary of State for War, to authorize and instruct you to make the above mentioned payment out of the New Zealand contribution, and to pay the balance only to the general account of the Treasury Chest. I have, &c, Newcastle.

New Zealand. No. 71.

FURTHER PAPERS RELATIVE TO MILITARY AND NATAL ALLOWANCES IN THE COLONY.