E.—No. 3. SECTION I.

The Ngatimaniapoto have gone to occupy Waitara, with Hikaka, Te Kaokao, and many Ngatimaniapoto chiefs ; they have gone to drive away the soldiers who have charge of Waitara. Those at Tataraimaka may not perhaps commit any evil; those at Waitara will be the first to do evil (i.e., to commence hostilities.) This ends. Bewi lias written to the Urcwera to ask them to let him have the la; that is, to give it up to him to do as he wishes (i.e., to consent to his attacking it). We said, He must be a great priest who will uncover the incantations which have been laid at that place. Pekehawari (a god) has been laid there. Let them (the Pakehas) first overleap them. Te Paea and I were at Eihikihi. This ends. From Wieemu Pataea Te Maioha. Enclosure 7 to No. 16. Otawhao, April 25th, 1863. Sib,— Up to a late hour yesterday, I intended leaving this place to-day ; but in consequence of information, received last night, I have decided on remaining at least a few hours longer. I have also kept Mr. James Fulloon, whose services have been of great value to us in this time of trouble and difficulty. I think you have been informed that an armed party of Ngatirnaniapoto, left for Taranaki on the 18th. The original intention was that a large body of men should go; but it was at last resolved, after much discussion, that a part of their fighting men should go to Taranaki, and that the rest should be employed elsewhere. Therefore, only about two hundred men went under the leadership of Takerei, of Mokau, Tikaokao, Hikaka, and Te Kaharoa; their destination is Waitara, and not Tataraimaka, the meeting having decided that they would not attack the troops at the latter place, but endeavour to drive out all the.) 7 found at Waitara. W. Kingi Te Bangitake is, I believe, still at Kihikihi, or in the neighbourhood of that place. He talks of returning to Waitara, and says, if he goes back, there will be plenty of fighting. A great discussion has been going on at Kihikihi, between Eewi and his followers; together with Eeihaua on the one side, and Te Paea Potatau and Patara, of Ngaruawahia, on the other. Bewi's side are urgent for an immediate descent upon the la (with a view, as I am told, not of attacking the troops, but of making a raid against the settlers) ; while Te Paea and Patara strenuously oppose the plan. I do not know whether the question is settled or not; but I think it desirable to give you the the earliest information in my power of the existence of the project. There appears to be every reason to believe that, if Te Paea and Patara succeed in dissuading Eewi and Eeihana from trying to carry out their plan, an attack will be made upon Eaglan. I have hoard this positively stated by two or three persons, but do not feel sure about it; as regards the project of sending an ope (party) down the river, it is certain that it was the subject of warm discussion up to a late hour yesterday. If Eewi should not succeed in silencing the opposition of Te Paea and Patara, I believe I shall have an immediate notice, upon which I shall cither ride into Auckland as quickly as possible, or send off a special messenger at once. If, on the other hand, I should find that an attack is to be made upon Eaglan, I will use every effort to send word to Major McGregor. W. Thompson and Ti Ori Ori have expressed their entire disapprobation of the proceedings of Eewi and his people, and I believe will prevent Ngatihaua taking any part in the conflict, which appears to be impending. I would beg to suggest that it is highly desirable that the present disinclination to war on the part of those Chiefs and their people, should be encouraged as much as possible. From all I can gather, it would not be a very difficult matter just at this moment to detach Ngatihaua, and a considerable part of Ngatiapakura, from those violent men, who according to openly expressed opinion of the more thoughtful of their neighbours, are bringing ruin and destruction on their people. The Potatau family are also deeply mortified at what has been done and said by Eewi and his companions. Te Paea assures me that she has stayed with her brother against her will, and that if the violent men carry the day in their discussions, she will at once quit Waikato, and return to Mangare. Nor should I in any degree be surprised if Matutaera were to follow her example. His own near relatives have admitted to me, in private conversation, that lie has no power to restrain the violent men who profess to be his subjects ; and the Ngatiapakura people in this immediate neighbourhood do not hesitate to say that they now see that their King is no good, because he has no power to prevent lawless proceedings. All the Europeans in this district have been warned by their Native friends to leave, or else that they will be compelled to put themselves openly under the protection of the King, and to pay tribute. I regret to be obliged to say that it is likely that some of the white men will take the latter course. They say they have only the choice of two evils, becoming either rebels or beggars. I would beg to suggest that all the Europeans in these districts should be officially warned of the danger they must incur by remaining amongst the Natives, in the event of war recommencing, and further would venture to urge the great desirableness of the Government obtaining possession of the lands at present owned by Europeans here and there in this district, and would especially instance the property of Mr. Heather. I have, &c, Abthue G. Pubchas. The Honorable the Native Minister.

Enclosure 8 to No. 16. Auckland, May 2, 1863. Sib,— In my last letter from Otawhao I informed you of the state of affairs in that neighbourhood up to the time of writing; I will now continue the account to the present date. Patara and Te Paea remained near Otawhao until Saturday, April 25th, when they returned to

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TO THE SECRETARY OF STATE.