E.-No. 3.

The location of the Defence Corps in the Eangitikei District does not appear to have acted unfavourably on the minds of tho natives, and no demonstration of any kind has been made in consequence, as wm originally apprehended. I have, <s_c. E. M. Logan, The Assistant Military Secretary, Major, 57ih Eegiment, &c. &c. &c. Lieut.-Colonel Commanding, Head Quarters, Auckland. Garrison, Wanganui. Sub-Enclosure in No. 1. TUE BESIDE!. MAGISTRATE, WHANGANUI, TO THE GENERAL, GOVERNMENT AGENT, WHANGANUI. Court House, Central Whanganui, October 28, 1863. Sir, — I have the honor to report that eight "Whanganui natives, who were engaged in the late attack at Taranaki, have arrived in the Upper Whanganui District; une of these received a gun shot in the front of his leg ; the ball, lodging in his heel, has not been extracted. These men report that Pehi and people are on their way back to Whanganui, and are now at Whitiora ; and that Pehi intends to withdraw from further battle with the military, and join the friendly natives; that ho charges the Taranaki tribe with being the cause of his joining in a strife with the Government, and with the defeat of the Whanganuis, in not supplying the required aid. Tho loss he has sustained will require satisfaction, and he will seek it from them. It is said that Pehi intends to become a Government native, and on his return participate in iho proceeds of the Waitotara purchase, with any additional sum he may be able to obtain for lands he now proposes to offer for sale. It is also said that Pehi has charged his own people with the folly of his having in any way joined the Waikato league, and therefore their loss is of their own seeking. Tahana's opinions are said to coincide with Pehi's. A printed circular is said to have been received by the rebels at Taranaki from Waikato, signed by William Thompson, advising to let " Tv," " Eongo," and "Tahu," now be one; or, we Waikatos have had enough of war ; let the future be occupied in agricultural pursuits, and let peace reign. Tv, the God of War. Eongo, the God of Kumara, or agriculture. Tahu, the God of Peace. I do not put much faith in what is said to bo Pehi's expressed intentions ; such men are not given to talk of what they intend to do, but the reverse. With him intentions are seen when actions appear. I will not vouch for the peace of this district when he is in it, no matter how blandly he may profess to be the protector of the white people. Pehi is a New Zealander, and in time of war is not to be trusted, unless a repelling power is ready at a moment's warning to meet him at the game of war, if he thinks fit so to play. I have, &c, Joux White, E.M., The Agent forthe General Government, Whanganui. Central Whangnnui. No. 2. copy of a DESPATCH from governor sir george grey, k.c.b., to his grace the dukk of NEWCASTLE, K.G. Government House, Auckland, (No. 160.) November 17, 1863. My Lord Duke, — I have the honor to report, for your Grace's information, that upon the night of the 7th instant the signal staff at the heads of tne Manukau Harbour was cut down by some disaffected natives. 2. As the signals which enable vessels to pass the bar of the Manukau Harbour, which in certain winds is dangerous, were made from this signal staff, great loss might have been sustained by any vessels which had appeared off the harbour before it was re-erected, and from the staff standing on the north side of the harbour, a very unpleasant suspicion arose in many persons' minds that the natives in that part of the country, who have hitherto been friendly to us, were about to co-operate with the hostile tribes. 3. I am happy, however, to be able to report, that the flag-staff was without delay re-erected ; that there is now little doubt that it was cut down by some of the natives of the Waikato tribes; and that the chiefs who live to the north of Manukau Harbour are, as wil 1 be seen from the enclosed copy of a letter I have received from them, greatly annoyed at such an act having been committed in their neighbourhood, and remain firm in their allegiance to tLe British Crown. I have, &<-., G. Grey His Grace the Duke of Newcastle, K.G., Ac. &c. Ac.

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