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powered to make bye-laws in all matters which concern those who live within its jurisdiction, subject to the approval of the Governor in Couucil. This can in practice be done under the Native Districts Regulation Act, 1858, which authorizes the Governor to make bye-laws and regulations for Native districts; and, in point of fact, such bye-laws will in general be adopted by the Ruuangas on the suggestion of the European Commissioner of the district, [c] All township officers, such as Assessors, Policemen, Poundkeepers, &c, being Maories, should be elected or recommended by the Runangas, subject to the approval of Her Majesty. All European officers connected with the system should be appointed by Her Majesty, [rf.] Each Runanga should elect one judicial officer, the Assessor. (The term "Assessor" is not approved of: but it has already found its way into the Acts of the Assembly, under which the system will have to be worked, and must for the present at all events be retained.) This officer should act aloue in all cases where the Commissioner is not present, subject to the periodical revision at very short dates of that officer, [c.] When the Commissioner sits on the Bench, the Assessor should sit with him, and take part in the proceedings and adjudications. \_f.] A variable number of townships (regulated by geographical, tribal, and other considerations) should be grouped into districts, over each of which a European Commissioner should preside. Every District should have a Runanga, consisting of members elected from the township Runaugas within its limits [gr], and should exercise the same powers as regards all questions arising between the different townships, as the township Runanga would exercise in it. [A.] They would, in fact, be a county organization. This branch of the machinery would be new to the Natives, and might not at first work so smoothly or intelligibly as the simple machine of the non-representative Runanga. It would however be a necessary part of this system, before any combined action for objects of any magnitude can be so. Ministers attach much importance to the gradual initiation of the system, by beginning in practice from the bottom, and not from the top, in the manner in which the above suggestions will indicate. It will not only be more intelligible to the Natives, but more simple and easy for those who have it to do. Ministers would hope gradually to work up to all, or nearly all, that His Excellency proposes; but they are convinced that the development of the system must be gradual, and that great care must be exercised in securing a firm foundation. They believe that in the existing Runanga such foundation exists, aud therefore it is that they seek to direct His Excellency's attention particularly to that institution, and to the expediency of making it in practice the point d'appui to which to attach whatever other machinery of government it may be considered desirable to organize. They feel that they cannot press too strongly on His Excellency's attention the very important principle embodied in this idea. It really means that we are not so much to govern the Natives, as to assist them in governing themselves as an integral part of the Colony. The operation of Sir George Grey's proposed system, if carried out on this basis, will result in the ultimate political aud social amalgamation of the two races: for the system is one which will be equally applicable to a mixed as to a separate population; and, as Europeans find their way into the interior, they will gradually participate in working the system of government under which they will be living, [i.] It is not necessary that Ministers should make any lengthened observations on the points of detail contained in His Excellency's plan; but they will put on record a few observations which have occurred to them.

See Governor's Notes, appended.

1. As to the establishment of a medical officer in each district. Ministers do not attach much importance to mere pharmaceutical ministrations among the Natives. [_/.] The diseases which exist among them are of a class which chiefly result from bad living and insufficient food—in short, a scrofulous degeneration of constitution, which, if not checked, bids fair, in the opinion of many, to cud in the extinction of the race. The exhibition of medicines can do little to remedy such a state of things; and it is doubted by some whether the prescriptions of European medical science do not do more harm than good, while the Maories live as they do. For instance, suppose calomel administered to a Maori who exposes himself to the sudden changes of temperature of the whare puni. The best doctors for the Maori race are the cow, the mill, the baker's and butcher's shops \_k] ; and it is believed that by establishing industrial agricultural schools, and holding out every possible inducement to farmiug aud grazing occupations, much more will be done for the health of the Native race than by any amount of medical administration. The establishment of hospitals in the Native districts might operate beneficially; but, as far as yet tried, the Natives have generally exhibited repugnance to resort to those which have been established, owing to no fault in the institutions, but to superstitions or other prejudices. It cannot be denied, however, that, if really competent medical men could be found who would devote themselves to the improvement of the sanitary condition of the Natives, while combining with that function the ordinary practice of their profession, much good might result. But wherever this is done the Natives ought, if possible, to be iuduced to pay to some extent for medical attendance. The pauperising of the Native race has been already carried to a most injurious extent by the indiscriminate bestowal of gratuitous aid; and in establishing such a system as that proposed, every attempt must be made to give it a co-operative rather than an elemosynary character. 2. As regards the sale of land by the Natives, and the terms on which Europeans will b* allowed to purchase. The subject of land is a difficult aud delicate one in the Colony, both in

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