E.—No. 3. SECTION I.

No. 72,

No. 26. copy of DESPATCH feom goveenob sib geobge geet, k.c.b., to his geace the duke of NEWCASTLE, E.G. Auckland, New Zealand, July 4th, 1863. My Lord Duke, — I have the honor to transmit copies of the letters named in the margin, which I have received from various persons warning me of the present intentions of the Natives inhabiting the district, which borders the Waikato river, and which adjoins the most populous and wealthy part of the Province of Auckland. These letters are selected as coming from the most trustworthy sources, but I have received much additional information all to the same purport. 2. It has now been clearly proved that some of the Chiefs of Waikato ordered the recent murders at Taranaki, and that being thus responsible for them, they have determined to support the people who carried out the orders which they issued. For this purpose, they are quite prepared to attack this populous district, and even to commit similar murders here. 3. I have, however, arranged with the Lieutenant-General a plan of operations, which will, I trust, not only effectually protect the Auckland district and its inhabitants from the dangers which threaten at this moment, but will also have the effect of placing this part of New Zealand in a state of permanent security. 4. Most fortunately the Head Quarters of the 2nd Battalion of the 18th Royal Irish arrived here yesterday morning, after an unusually quick passage. Nothing could have been more opportune than this event. After consultation with the Lieutenant-General, I find the force at his disposal is still so small that it would be imprudent to allow the 65th Regiment to leave the Colony during the existing crisis. In conformity, therefore, with the terms of my Despatch, No. 44, of 9th May, applying for reinforcements, the 65th Regiment will, for the present, be detained in New Zealand, but they shall not be kept here a day longer than is absolutely necessary. I have, &c, G. Grey. His Grace the Duke of Newcastle, K.G.

Enclosure 1 to No. 26. Eohanga, June 16, 1863. Mi Deae Sir Geoege Geey,— I feel that it would be scarcely right to withhold from you the accompanying letter of Heta's, even though, as is most probable, you are already acquainted with his ideas on the state of affairs. I should perhaps, at the same time, state that I do not coincide with his views, and do not think that the grounds that he states are sufficient to bear his conclusions. Heta seems to be of an anxious despondent mind, and in the former war his dismal statements frightened some of our friends out of their propriety. I would observe :— 1st. That the fixed male population of Onewhero and Tuakau is not much above forty. 2ndly. That any of that number might, according to Maori practice, have written that letter to which he refers, and put the names of that people to it. They did hold a runanga about three weeks ago, but from the enquiries that I made at the time, I did not infer that the majority were in favor of hostilities. 3rdly. It is remarkable that he states no ground of apprehension from his own people. 4thly. The kahmng (taking up bones) of the dead, and the purchase of goods largely, I look upon as acts customary in all doubtful states of affairs. Having said so much to moderate the strength of Heta's remarks, I must, in justice to him add, that I have during this last twelve months heard of six different proposals to attack the la. The opinion of the Maoris seems clear that at least up to a late date it was assailable. Their not having attacked that post heretofore, I have regarded as a strong proof of the friendly disposition of the majority. Two of these proposals emanated from the people of Tuakau, the "nakahi" (snake) to which Heta alludes. This people in the timo of the former war, when a large party landed at that place, intending to march on Patumahoe, in consequence of the supposed murder of a Maori by an European, offered, in my hearing, a road to that place, when Waata had forbidden them to cross Ngatitipa lands. If any evil does arise to the people of that district, it will, I fear, come through Tuakau. Deeply interested as I am in the prosperity of those settlers, I will trespass upon your indulgence by suggesting, that the people of Tuakau should be reminded, that your are aware of their conduct past and present, and that you will hold them responsible for any mischief inflicted upon the settlers of that neighbourhood. Your Excellency will observe Heta's request that his letter be kept secret. I do not think that either of us would be much compromised by the allusion to which I refer. I remain, &c, E. Maunsell. Governor Sir George Grey, K.C.B. P.S. —Since writing the above, I have made further enquiry about the "Eunanga a te Atua." I find from very good authority that the decision was — 6 for war, 11 for peace. They also took those words, " Kawea a te Bangitake ki Taranaki." (Take Te Eangitake to Taranaki) in their literal sense, and not figuratively, as Tupeno suggested to Heta. Of Thompson and Matutaera, I have of late several indisputable reports that confirm me in my belief that they desire peace.

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DESPATCHES FROM GOVERNOR SIR G. GREY