E.—No. 7a

means suggested above. The special reason for particularizing the object of expenditure, viz.,- - the making of roads, was that the money might contribute towards the permanent establishment of peace and security. But if it be spent in aid of any plan for bringing the Natives once for all to a conviction that they must obey the laws, and cannot disturb the general peace with impunity, would not this main object the Assembly had in view, viz.,—a permanent settlement, be even more satisfactorily attained than by the construction of a few more miles of macadamized road into the interior of the country P If this appropriation of the £100,000 be allowable, and if, a« is probable, a surplus of £20,000 or £30,000 may be calculated upon, out of the £200,000, of the Loan to be applied to the liquidation of the Colony's debts to the Imperial Government, on account of the last war, there would be si sum of about £200,000 at the disposal of the Government to meat the present emergency. This sum would enable the measures above suggested to be carried on for the next sis months. If this cannot be done, one of two alternatives remains. The Governor can, if he pleases, exercise the power recognised in the late Despatches of drawing upon the Commissariat in cases of great emergency. Or, he can call the General Assembly and apply to them for the means wherewith to rescue the Colony from a position of imminent danger. But the delay, and the great and possible fatal interruj)tion to the execution of any measures by the Governor requiring his personal attention, which would be interposed by the sitting of the Assembly at the present moment, seem to put the last step almost out of the question, even though the necessity of calling it at the earliest possible date be acknowledged. Alfred Domett. 23rd May, 1863.

No. 6. MEMORANDUM fob his excellency. With respect to the maintenance of the military occupation of Tataraimaka, the Colonial Secretary concurs with the Native Minister as to the course to be adopted in either of the contingencies mentioned in the following Minute. With respect to the defence of the Colony in the event of a general rising, the Colonial Secretary has already communicated to His Excellency his own views on the subject. Alfhed Domett. 27th May, 1863.

No. 7. MEMORANDUM by the native minister. Mb. Domett, With reference to the conversation we have just had with the Governor, I will state my own views very briefly as to what should be done. Immediately upon the murders being committed on the 4th May, the Colonial Government sent authority to the kSupcrintendents of Wellington and Hawke's Bay to call out the Militia for active service in case of any attack upon those settlements. They also sent orders to Auckland to have everything in readiness for calling out the Militia and Volunteers there. The Superintendent of Wellington replied, that in his opinion there was no such pressing danger there as to necessitate the immediate calling out of the Militia. At Auckland every necessary step has been taken, and from the letters received by the " Airedale" it may be stated that the number of men will not be far if any short of 5,000 there, and will be ready at any moment. The question of calling out the Colonial Militia and Volunteers throughout the North Island, and thereby incurring an immediate and large outlay, for which no provision was made by the House, must necessarily depend upon the previous question, whether any aggressive movement is now to be made against the murderers and their abettors, or whether a merely defensive position is to be maintained. Upon this last question the Governor requires an immediate and decisive expression of opinion ; and I have no hesitation whatever in stating mine. 1. If the General considers that with the force of Troops and Militia now here, he can, notwithstanding the season of the year, inflict sharp and present punishment on the Taranakis and Ngatiruanuis now in arms against us, this should be done ; and the Colony ought to assist to the uttermost in men and money, if the infliction of such punishment should lead to a general insurrection. 2. If the General does not think that at the commencement of Winter, in a country so broken into gullies, with the known position of the enemy's Pas, and with the force he has at his command down here, swift and decisive punishment can be inflicted, my advice is to withdraw the Troops from the Redoubts at Tataraimaka and Oakura and make no aggressive movement whatever during the Winter. I see no use in maintaining those posts ; they can be re-occupied whenever they are wanted for offensive operations. 3. I look upon an aggressive movement against Waikato as out of the question. If in July, 1861, the then Governor, the General, and the Colonial Ministry were all agreed that the then

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