E.—No. 3. SECTION I.

river. His Excellency assured them that nothing but good would result from a steamer being placed on the river, and told them that if they would at once take this step for themselves he would not send one, but that he would not on any account permit the people to be deprived of the advantages to be derived from such a movement, and he showed them how extensively useful it would be to all the people. With respect to the King movement, the natives said that hitherto they had employed all their energies to establish the institution, and had no time to devote to the making of laws; that, now the thing had obtained a position among the people, they would elect from amongst their chiefs those who were most learned, to frame rules and laws for the good government of the people; these laws will be handed by Matutaera to the Governor for his sanction, and, if assented to by the Governor, they should become law. The Governor replied, that so far as he understood their King movement, as they were now conducting it, nothing but evil would result. That if they would send a deputation of their principal chiefs to Auckland to give a full and minute explanation of it to him and Iris ministers, he would then be in a position to give them a definite answer. As it was now growing late, and the Governor was suffering from a severe attack of indisposition, the result of over-exertion aud exposure to night air in his journey up the river,—the meeting closed, with three hearty cheers from Thompson and the people for the Governor. They then proceeded to Ngaruawahia, where a meeting was held, at which they resolved that his Excellency should be invited to go through the whole district; that each chief should conduct and entertain the Governor while at his settlement. During the night his Excellency became much worse; he was advised to go back to Auckland until his health would again permit him to undertake a journey. When half way down the river, the canoe was overtaken by a man on horseback galloping along the bank carrying letters from Thompson and all the people, urging him if his health would permit him, to come and visit the people throughout tho whole district; but as his Excellency's illness had increased so much as to make his return to town necessary, he proceeded on his way to Auckland, and arrived here on the evening of Saturday last.

No. 6.

No. 7. COPT OF DESPATCH FBOM GOVEBNOR SIE GEOEGE GREY, K.C.B., TO HIS GBACE THE DTJKE OP NEWCASTLE, K.G. Government House, Auckland, 6th February, 1863. My Lord Duke, — I have the honor to transmit for your Grace's information the Copy of a Report from Mr. Pai*ris, stating that in his belief the Natives of Taranaki will now offer no opposition to our again re-occupying the Tataraimaka block of land, which upon my arrival in the Colony, I found they claimed to have taken from us, and to hold in right of conquest. 2. At the same time I enclose another letter from Mr. Parris showing that the Native Tribes in the Ngatiruanui country, still hold their district closed; not only against Europeans, but against Natives who hold office under the Queen. I have, however, every hope that they will shortly abstain from such foolish and vexatious proceedings. I have, &c, G. Grey. His Grace the Duke of Newcastle, K.G.

Enclosure 1 to No. 7. New Plymouth, February 3rd, 1863. Sib,— By this mail, a Memorial will be forwarded to His Excellency the Governor for transmission to the Imperial Government, giving a description of the state of this Province, &c, &c; —the merits of which it is not my intention to remark upon, neither do I for a moment suppose it will influence His Excellency Sir George Grey, to alter his plans for the solution of the extremely difficult question which he has in hand ; but having heard of His Excellency's illness, which might defer his visit to this place, I am induced to submit the following opinion respecting the re-occupation of Tataraimaka, the only place settlers are prevented working at present. Since my official report (dated 31st December last) of the assembling of the Southern Natives, Ihave been carefully enquiring into the matter, and find that although the Ngatiruanuis made a move, it was not ostensibly for the purpose of opposing the occupation of Tataraimaka, but rather on account of their chief, Tamati Hone Oraukawa, being in the Taranaki District, and to support the Taranakis in case the troops advanced upon them. I am credibly informed that Tamati Hone Oraukawa (the leading chief of the Ngatiruanuis) told the Warea Natives that if they interfered with the re-occupation of Tataraimaka, that he should turn his back upon them. (Ka huri au taku tuara ki a koutou.) Many other influential men of the Taranaki tribes have declared their entire disapproval of any interference with the occupation of the block. I have, therefore, the honor to state that I am of opinion that Tataraimaka might be taken possession of without a renewal of hostilities if carefully managed, by stationing not less than (100) one hundred troops there. When the troops had secured their position, a house (or some small ones, easily removed to the homesteads when established by the settlers,) could be erected near the Stockade for the accommodation of the male portion of the settlers of the block, (the expense of which could be deducted from their compensation,) who could work on their farms by day and be under the protection of the Stockade by night, until a more satisfactory understanding was arrived, at with the disaffected Natives. I am of opinion that the above arrangement could be carried out without reinforcements from

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DESPATCHES FROM GOVERNOR SIR G. GREY