E—No. 1

On the 26th July, Mr. McLean returned from his visit to Tamehana, bringing with him Paora a near relative of that chief, and some other influential chiefs. Tamehana himself had been prevailed on not to accompany Mr. McLean, but he sent me word (hat he would come later in spite of all attempts to dissuade or prevent him. But on the 27th the English mail arrived, announcing Sir George Grey's appointment : I therefore confined myself to advising submission and acquiescence in whatever he may say. What has already taken place, however, clearly shows that the Waikatos desired to coiifer with me, though they were well acquainted with the terms contained in my declaration to the chiefs at Ngaruawahia, and were well aware of my determination to adhere to them. I have also learned that Tamati Ngapora (uncle to the King) recommends submission ; that Tamehana believes resistance to be hopeless ; and that the lower Waikatos desire to accept the terms of the declaration. What change Sir George Grey's arrival may produce is uncertain ; my removal is considered as p, concession to those who were taught to draw a distinction between the local and the Imperial Governments. Having gained this, they may be more ready to submit, because they may do so with less fear of humiliation among their own people, the first concession having been made by us. I have dwelt almost entirely on the course likely to be pursued by the Waikatos, because upon it will depend that of all the discontented tribes. The Ngatiawa and the tribes in the Province of Wellington are anxiously watching our proceedings with the Waikatos, and have been much influenced by learning the real truth as to the past, and being convinced of the firmness and fairness with which the disaffected have been treated, At Hawke's Bay there is considerable dissatisfaction, which would be at once allayed if the Native title to land could be secured so that the owners could deal with it as they please ; but this requires legislation. The Ngatiruanuis, in the South of New Plymouth, continue sulky, and will not permit any European to visit or pass through their country. If the Waikatos submit, the Ngatiruanuis wiil be isolated and may be dealt with easily. Troops may be landed on the coast in fair weather, and, instead of following the Natives into their fastnesses, might be employed in opening up the country by making a road through it. On the whole, I have found that during the cessation of hostilities the tone of the disaffected has been considerably altered and subdued. They appear to have a more correct view of the intentions of the Government towards them, and many of the chiefs who entertained the most unfavourable opinions of my sentiments have declared that they were misled, and expressed their regret. I attribute much of this alteration to the terms of peace dictated at the Waitara, and those offered to the chiefs at Ngaruawahia; and not a little to the Conference at Kohimarama, the good effect of which is appearing daily, and is proved by the constant enquiry as to when it will be repeated. The real difficulty to be encountered is that of establishing a system for civilizing, protecting, and guiding—yet restraining—the Maoris, which shall be acceptable to them and not distasteful to the rapidly increasing European population. This subject, however, entails considerations it is no longer my duty to enter on : but I may observe that the Resolution of the House of Representatives, in which they requested me to circulate my views upon future Native policy, proves that the Assembly is willing to co-operate with the Governor and supply him liberally with funds. In conclusion, I beg your Grace to accept my grateful thanks for the support I have received from Her Majesty's Government during the whole time I have been employed in New Zealand. I enclose the copy of a Memorandum by the Assistant Native Secretary, and a report of two interviews held with important chiefs. I hare, &c., T. Gore Browne. His Grace the Duke of Newcastle, K. G., &c, &c, &c.

Enclosure 1 in No. 14. Memorandum by the Assistant Native Secretary. Native Secretary's Office, September 26th, 1861. The accompanying Memoranda illustrate in some degree the nature of the reaction which ha« for some time past been going on in Waikato. It is beyond question that the war spirit is on the decline there, and that a more moderate tone prevails. There is evidently a party among the upporters of the Maori King which inclines rather to concession than to fighting: audit* iiiiluence is on the increase. Should this party ultimately prevail, there may be little difficulty iq iiriimgiug terms with Waikato. The protracted suspension of hostilities affording an opportunity for reflection, and the terms of peace granted to the Ngatiawa, have had a good effect on the Native mind. The intentions of the Government are less suspected. The frankness with which the Governor has at all times communicated with the Chiefs who have conferred with him on the subject of the war, together with the moderation and forbearance shown by him since the commencement of hostilities, harebeen appreciated and have won the respect and confidence of the Natives generally. The presence of so large a number of troops, with the military preparations, have also had a wholesome effect. It would be premature to venture an opinion at present as to how far the Waikato tribes ar« prepared for making the concessions which are necessary ; it may, however, be safely asserted that the possibility of a peaceful solution of our difficulties, so far as they are concerned, is less remote thau it was a few months since. The tribes who have encountered our troops do not appear

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TO THE SECRETARY OF STATE.