E.—No. 4.

SECTION VI.—UPPER WAIKATO. No. 1. J. E. GOEST, R.M., UPPER WAIKATO, TO THE ASSISTANT LAW OFFICES. Otawhao, February 27th, 1861. Sir,— I was absent on a visit to Taupo, when your letter dated February 11th arrived here ; I have had no earlier opportunity of replying ; I am well acquainted with Piripi Matewha, he belongs to the Ngatihaua tribe, and was for some time teacher of the school at Tamahera, where he lives. About a year ago all the children were taken away from his school by their parents, in consequence of Piripi's receiving money from the Government contrary to the wishes of his tribe. If Piripi is now, as he represents, trying to pursuade his tribe to accede to the plan of Sir George Grey, the knowledge that he is in pay of Government is likely to revive former jealousy and neutralize his efforts. The Ngatihana tribe is not at present resolved to accept our laws and magistrates, and if Piripi were now appointed an Assessor, his office would be a sinecure. I think that to clothe a man with powers which he cannot exercise would bring our administration into contempt. The principal which I have uniformly laid down in my conversation with the Natives is that when a tribe is willing to come under our administration, and promises to obey the laws, Assessors will be appointed, and paid by Government for their work, but that no money will be given secretly, or to induce Natives to declare themselves loyal. I do not therefore recommend that Piripi should be at present appointed an Assessor. I have, &c, J. E. Gorst. F. D. Fenton, Esq., Assistant Law Officer.

No. 2. REPORT ON THE STATE OF THE UPPER WAIKATO DISTRICT. As I have completed the task of visiting every part of the Upper Waikato District, it becomes my duty to make some general report on the sentiments and intentions of the Natives therein. I should, however, be deceiving the Government, were I to pretend to accurate knowledge, or fixed opinions on this subject. The chief excuse I have to offer for my deficiency is the reserve and distrust with which the Natives, in almost all parts, converse on public affairs, before any one known to be connected with the Government. I am induced to give expression to opinions so hastily and crudely formed, only by the feeling that the Government is anxious for information from this district; and that, before more accurate knowledge can be obtained, circumstances may arise in which imperfect information will be preferable to none at all. I trust that the nature of my communication, and the diffidence with which it is offered, may exempt it from general publication. I have little hesitation in saying that the whole of the district is disaffected to the Government. It is true that in almost every village there are to be found some who make a profession of loyalty; but they are few in number, and feeble in influence, and in almost every case it is open to suspicion that love to Government is a love of presents and salaries only. It is possible to nominate and pay Assessors in this district, but not to use them as instruments for executing the law. Nor do I think it possible through the influence of money to organise a " Queen Party," of sufficient number and influence to cope with and finally absorb the King party. On the contrary, a very large part of the Government money would find its way (as is the case at present with money spent in the Post Office service) into the King's impoverished exchequer. His Government, like greater ones, is in stress for want of funds. The leaders are casting about in all directions for some means of raising a revenue. They are trying to found a Custom House at Kawhia, and are diligent in fining such transgressors as are not above the law ; nothing is calculated more promptly to relieve their embarrassment than a number of Assessors' salaries. (For instance, Taati has since made a law, that no one but his soldiers shall carry the mail between here and Meremere.) Taati's regiments at Rangiaohia is only half in uniform, owing to a failure of funds ; if an appointment as Assessor were given to him, the beautifying of his regiment would be speedily completed. But though all disaffected, two very distinct phases of disaffection are exhibited, of which the Ngatimaniapoto and Ngatihaua tribes may be looked upon as the types. Between these tribes there is a strong and bitter rivalry. One cause of this is the personal emulation of Rewi Maniapoto and William Thompson, each of whom is desirous of being the head of this King Movement, and labours to increase his own influence, and undermine that of his rival. Several serious misunderstandings arose between the two tribes in the Waitara war ; the Ngatihaua loss was heavy, the Ngatimaniapoto slight; the

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NATIVE AFFAIRS.