E.—No. 3 SECTION 11.

Though the position of the Home Government in respect of Native Affairs, is not what you imagined when you asked for my instructions on this subject, I think myself bound to express my opinion upon it. I should hesitate to admit, as a matter of strict Law, that Her Majesty had the power without any Legislative sanction, of appropriating for any purpose the acknowledged property of any of her subjects. But even if it were true that the peculiar legal condition of New Zealand authorized the application of this arbitrary principle, I am of opinion that the question cannot be dealt with as one of strict Law. With a large jJroportion of the Native Population either already in arms or prepared to take them up in defence of their supposed rights, and most especially of rights to land, policy not less than justice, requires that the course of the Government should be regulated with a view to the expectations which the Maories have been allowed to base on the Treaty of Waitangi, and the apprehensions which they have been led to entertain respecting the observance of that Treaty. I cannot doubt that the proposed appropriation of land, if effected contrary to the Will of the owner, and justified on principles which, whether technically correct or not, are alike contrary to the principles of English and Native Law, would be considered as a violation of Native Eights, would be resisted on the spot, and would provoke throughout the Islands warm resentment and general distrust of British good faith. It will be very fortunate if, under these circumstances the Colony escapes the revival of the War, now happily dormant, in more than its original intensity. Although therefore I may regret that the inhabitants of Taranaki and other places should remain without the advantage of Roads which would add materially to their convenience and security, I am not of opinion that these advantages should be obtained at the risk of reimposing on Her Majesty's subjects in the United Kingdom the cost, and on the Colonists the cost and dangers of a Native War. I think that Her Majesty's Troops ought not to be employed in a War so originating ; and I think that unless the Colonists are prepared to assume its entire burthen they must be content to remain imperfectly provided with the means of communication until they can persuade their neighbours by peaceable means to submit to what is for the common good. I need hardly add that I shall view with more than regret the adoption by your Government of the course which appears to be indicated in the enclosures to your Despatch. I have, &c, Newcastle. Governor Sir George Grey, K.C.B., <fec, &c, &c.

NEW ZEALAND. No. 65.

No. 11. copy of DESPATCH from his geace the duke of Newcastle, k.g., to governor sir george GRE/, K.C.B. Downing Street, 26th June, 1863. Sir,— I have received your Despatch, No. 32, of the 30th of March, forwarding for my information copies of papers relating to an outrage which had been committed by certain Natives at Kohekohe on the lower part of the River Waikato. I entertain no doubt that you and your Government will have adopted and will continue to adopt the most effectual steps in your power for discouraging, and, as opportunity shall offer, repressing such outrages. I have, <fec, Newcastle. Governor Sir George Grey, K.C.B., ifec, &c, &c.

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DESPATCHES FROM DUKE OF NEWCASTLE, K.G.