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Notes by His Excellency Sir George Grey on the preceding Minute. [«.] This is quite in accordance with my views. But not to distrust the population too much' I should wish to see the Village Runangas transact their business by their representatives. [6.] I should have preferred the term Hundred. It is already in use here. The Natives will make a strange word out of " Township." [c] I would confine them to merely municipal subjects; my wish would be, in the larger Runangas, to train a superior class of men with larger views than the members of Roaangaa would require to have. [rf.] I should prefer the names of several candidates for the various offices being for the present submitted to the Governor by the Runanga, and that men of good repute in their several tribes be selected from these. I am anxious, where it is possible to do so, to introduce the proposed measures of mine; and no machinery for voters or elections at present exists. e.] I should make here some remarks regarding elections, as iu the last paragraph. 'f. I quite concur iu this. g.~\ I should here make the same remarks regarding elections as in the previous paragraphs. "/(.] I should prefer at once giving to the larger Runangas the powers I have proposed. I would allow the larger Runangas immediately to assemble under their Commissioners. I believe this having been once tlone, and a meeting of the larger Runanga taking place every six weeks or two months, the smaller Runangas would come into complete action ; and ,if the larger Ruimngas hail legislated, would supplement their legislation by making such bye-laws as were necessary to complete the w-ork of the larger Ruuangas. I would, however, leave a large discretion to the Commissioners regarding the times of assembling the different Ruuangas. [£.] It is hoped that the proposed institutions are equally well suited for a Native, a mixod, or an European population. [ i.j I think that one great object is to establish European centres of civilization in many parts of the Northern Island; I should, therefore, advise the appointment of a medical officer, as much for the sake of the Europeans as of the Natives. I think that no European or Native should receive gratuitous medical aid, except on the recommendation of the Civil Commissioner, after enquiry before the Runanga ; except in cases of accident or emergency. A.] A medical man will help to draw these to the spot. "/.] All I desire on the point of buying lauds from the Natives is,— 1st. That no one should be allowed to grasp more land than he can use. 2nd. Occupancy for some years. 3rd. Concurrence of the Runanga to the sale. I should fear, at present, to go further. The great object is to devise a system which, at this critical time, both Natives and Europeans will gratefully accept. [m.] I still think the plan I proposed is the best, and would materially aid iu the establishment of law and order throughout the Colony, and create confidence iu the minds of both Europeans and Natives in the administration of justice. It can, however, be left if it is desired, for future consideration, and possibly legislation. [«.] I shall be sorry if my proposal cannot he carried out. If it cannot, I would advise that a promise should be made to the Natives that, in all cases of such magnitude that they cannot be tried in their own Courts, a Judge should be sent to try them iu their own District, unless there was some necessity to the contrary from the nature of the case.

Note by Ministers in reference to the preceding Notes. 4th November, 1861. Ministers have carefully considered His Excellency the Governor's notes on this memorandum. They do not perceive that any difference in principle exists between His Excellency's views and their own; and they are quite prepared to give their most cordial and earnest co-operation in carrying His Excellency's plan into effect, satisfied that it amounts to a sound, comprehensive, and practical system, Bad that any difference of opinion as to the details of the plan will work themselves clear in the light of experience, as it is put into actual operation. William Fox.

No. 6. MINUTE BY HIS EXCELLENCY SIR GEORGE GREY ON THE COST OF THE PROPOSED INSTITUTIONS FOR THE GOVERNMENT OF THE NATIVES. Auckland, November 29th, 1861. The annual expenditure which it is proposed, at least in great part, to do away with by introducing a complete system for the government of the native population of the Northern Island of New Zealand, is as follows : — £ Militia and other local forces 48,000 Colonial contribution to cost of troops 35,000 Appropriations for native purposes 26,000

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MINUTES BY THE