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approximate idea of the quantity of arms and ammunition in the hands of the natives. Judging by the very small importation iuto the Middle Island, where the Native population is insignificant, it may be assumed that nearly the whole of the arms and ammunition imported into the Northern Islaud would ultimately find their way into the hands of the Natives. And in practice it is known that the Europeans (previously, at all events, to the Taranaki war), have been very little in the habit of buying either arms or ammunition for their own use. Another object in furnishing this Return is to shew the immense impetus given to the trade in arms aud ammunition by the removal of the restrictions imposed by Sir George Grey and released by Governor Browne in 1857. The increase iu the years 1857, 8, and 9, as compared with 1854, 5, aud 6, is au average of more than 1000 per cent, as tested by the value of the articles; the only safe test, regard being had to the miscellaneous character of the parcels in which they ai-e usually introduced. The Custom House valuation is not more than half the actual rate at which the articles in question find their way into the hands of the retail purchaser. It is evident, therefore, that since the relaxation of the restrictions in 1857, the Natives have expended not much, if any, less than £50,000 on arms and ammunition. William Fox.

No. 2. MINUTE BY MINISTERS ON THE MACHINERY OF GOVERNMENT FOB NATIVE PURPOSES IN EXISTENCE AT THE DATE OF SIIR GEORGE GREY'S ARRRIVAL. Auckland, 8th October, 1861. The Constitution Act, which in other respects confers on the colonists the fullest powers of managing all the domestic affairs of the colony, makes three exceptions in reference to matters connected with the Natives. 1st. It gives to the Crown power to define Native districts within which, as between nations, their own laws and customs shall prevail. No such district has hitherto been set apart, and so far this exceptional clause of the Constitution has been inoperative. 2nd. The power of extinguishing the title of the Natives in the waste lands is reserved to the Crown. 3rdly. A Civil List of £7,000 a year is reserved for Native purposes ; but the specific appropriation of that amount to particular objects of Native service seems to be withiu the fuuctiou of the Assembly. These being the only points on which any exceptions are made from the powers of self government conferred by the Constitution Act on the Assembly, it seems a reasonable conclusion that the general administration and control of Native affairs, in all other particulars except the three above mentioned are as far as the Constitution Act is concerned vested in the Assembly. As regards the right of legislation on Native affairs, the Assembly has always claimed and exercised it, subject only to the same vetos of the Governor and of Her Majesty as on all other matters. But as regards the executive administration of affairs relating to the Natives, an exception has been made from the practice established iu reference to the other departments of Government. It is this. On the introduction of Responsible Government in all other matters in 1856, Governor Browne made it a sine qua non that he should retain in his own hands the administration of Native affairs. The following Memoranda, by which the relations of the Governor towards his Ministers were established, explain the position which he assumed to himself in the matter. " The view the Governor takes of the relations between himself and his Responsible Advisers is as follows: " 1st. Iu all matters under the control of the Assembly, tho Governor should be guided by the advice of gentlemen responsible to that body, whether it is or is not in accordance with his own opinion on tho subject in question. " 2nd. On matters affecting the Queen's prerogative and Imperial interests generally, the Governor will be happy to receive their advice, but when he differs from them in opinion, he w'ill (if they desire it) submit their views to the consideration of Her Majesty's Secretary of State, adhering to his own until an answer is received. " Among Imperial subjects the Governor includes all dealings with the Native tribes, more especially in the negotiation of purchases of land. He will receive and act on the advice of his Responsible Advisers in reference to the amount of money they may desire to have expended in any one year in the purchase of land, but beyond this he considers himself bound to act on his own responsibility. " The Governor alone is responsible to Her Majesty for the tranquillity of the Colony, which would be endangered by the ordinary and inevitable change of opinions consequent on a change in his advisers. "It follows, as a necessary consequence of these views, that the Chief Land Purchaser Commissioner and his subordinates must take their orders from the Governor alone."

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