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influential chiefs belonging to or connected with the Waikatos; indeed, with all the other tribes. Friendly communication with them in a spirit of firmness and conciliation accompanied by acts of personal kindness, would result in their return to their tribes in a temper which would probably go far to promote a pacific solution of difficulties. Sir George Grey would have in the meantime the opportunity of making himself fully acquainted with the position of the question, and arranging his own plans for the future. Then will be the time for direct personal communication with the larger bodies of Natives. Sir George Grey will find the circumstances of the Colony greatly changed since the period of his previous administration. Whilst its resources are greatly increased its weak points are multiplied also. Large districts, remote from towns, have been occupied by considerable populations more or less scattered, but all substantially unprepared for self-defence in case of a general insurrection. In the Province of Auckland the city, and the outsettlers as far as Otahuhu at least, might be considered as pretty safe within the military lines; while the Northern parts of the Province lie among friendly natives. The whole population of the Province of Hawke's Bay, however, numbering between 2000 and 3000 souls, is scattered over an area of some three millions of acres, on isolated sheep farms, the homesteads on which are generally several miles apart. In the Wairarapa district of the Province of Wellington, are some 2000 souls, being partly on runs or in small farm communities of 200 or 300 souls each ; and intermixed with a body of natives several hundreds in number, who can be reinforced by thousands at a few hours notice from Hawke's Bay, Mauawatu, Taupo, and other districts. In and about Wanganui, scattered over an area of somewhere about a million acres, are from 2000 to 3000 souls, accessible by large bodies of natives. All these populations have large quantities of live stock, extensive cultivations, farm buildings, mills, and other fixed but destructible property. The Natives also are much changed within the last seven years. The political agitation already referred to, has done much towards making them forget old feuds, and united them to a great extent in a common cause. They are also much better prepared for war than formerly. In 1857 the restrictions which Sir George Grey imposed on the sale of arms and ammunition were released to an extent which may be said to have thrown the sale open. According to an estimate based on Custom House returns, the Natives expended on arms and ammunition during the succeeding three years a sum approaching, if it did not exceed, fifty thousand pounds. This may seem almost incredible. It is a fact, however, that small parties of Natives have purchased at one time whole tons of powder. While, therefore, the supplies in the hands of the Natives are insignificant compared with our resources, and insufficient for any lengthened operations, and have been no doubt lessened by the expenditure on the Taranaki war, they are undoubtedly sufficient to carry destruction into all the settlements of this island. The King party is so organized in the island, that in case of war commencing in Waikato or elsewhere, on the basis of the King movement, but a short time would elapse before concentrated attacks would be made on every district occupied by Europeans. It needly hardly be said what would be the result in the way of destruction of life and property. Governor Browne stated that 20,000 troops would not enable him to do more than protect the centres of population. At least half, probably two-thirds, of the population South of Auckland would be at the mercy of Natives. As regards the military resources of the colony for aggressive purposes, the Governor will no doubt receive full information from the Lieutenant General. It is sufficient here to state that there are a little over six thousand troops in the colony ; of these, one regiment is at Taranaki, four hundred men at Wanganui, four hundred at Hawke's Bay, and three hundred at Wellington. The remainder are concentrated around Auckland. As regards colonial defences, there are, a militia partially but very insufficiently organized, and a few volunteer corps. These bodies can at best be looked to as a protective force of a character purely local, the existing law not allowing of their " mobilization" to a distance of more than thirty miles. They are very inefficiently supplied with arms and ammunition, and very imperfectly trained, while the organization of the force requires an entire change. A Keport of a joint Committee of both Houses of the Legislature is appended, which will throw some light on this subject. The Governor's attention is particularly called to the Eesolutions of the House of Eepre- f sentatives referred to in that report, and also to a Memorandum of an interview between Governor Browne and a deputation of Wellington members, on the subject of the defence of that Province, a copy of which is annexed. Another point to which the attention of the Governor ought to be directed, is the impossibility of providing places of refuge for the women and children in case of a general war. From 15000 to 20,000 of these would have to be provided with house-room and food, in towns already overcrowded, and no means of making such provision exists without very considerable warning before hand. The foregoing remarks have reference to our relations with the natives, and the policy towards them in general. There are, however, some special circumstances which will demand Sir George Grey's serious attention. The present state of the Taranaki settlement is this :—The main body of the troops have (as already stated) been withdrawn. The place is now garrisoned by a single regiment, the principal part of which is stationed in the town or its immediate neighbourhood ; a small party being stationed in a blockhouse at the Waitara, on the land which has been the subject of dispute. This place is almost cut off from communication with the town, and is a position of considerable risk in case of war. The militia at Taranaki has been called out, and is on actual service under proclamation of martial law. There is also a small but very effective corps of Volunteers.

Session Paper, IUUI. Session Paper, I*ol.

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GOVERNOR AND MINISTERS.