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E.-No. 3 .

Enclosure in No. 27. MEiroßvxnrM by ministers. 1. Ministers desire to make a few remarks on the Despatch of the Duke of Newcastle, dated the 2Gth November 1864-, in which his Grace states, that while he acquiesces generally in the principles which have been adopted hi reference to the confiscation of native land, he must add, that the application of those principles is a matter of gi'eat danger and delicacy, for which the Colonial Government must remain responsible ; and his Grace then proceeds to point out two dangers, which he observes that the Colonial Ministry (Mr. Domett's) have not noticed in their memorandum, but which he remarks they cannot have been blind to. 2. The Colonial Government fully recognize tho responsibility that rests upon them, and they will endeavour to fulfil their duties with prudence and justice. 3. Ministers do not feel any apprehension that the confiscation of land cannot be confined within wise and just limits, and they fully believe that if they were to attempt to carry this principle beyond such limits their acts would not receive the sanction of the General Assembly. ■'.-. "With respect to his Grace's apprehension that the natives who still remain friendly may view confiscation, not as a punishment for rebellion, but as a flagrant proof of the determination of the colonists to possess themselves of land at all risks, Ministers have to state that every means have been taken to pursuade the Maories in general that the property of innocent persons aud tribes will be strictly respected, and that the measure of punishment will be apportioned to the degree of guilt. 5. Ministers are glad to bo able to add, that, though the proceedings of the Government were at first naturally looked upon with some degree of anxiety and distrust by the natives, those feelings have much subsided generally, and in some instances complete confidence has been established in the intentions of the Government. (i. Ministers request that his Excellency will be pleased to transmit, for his Grace's information, this memorandum, and the copies enclosed herewith of two notices circulated by the Government in reference to one of the points referred to in the Despatch. 1 .ED. "WIIITAKEH. Auckland, February 29, 1864. No. 28. copy of a DESPATCH from governor sut george grey, k.c.b., to iits grace the uuke of NEWCASTLE, K.G. Government House, Auckland, (No. 36.) February 29, 1864, . v Lord Dure, — I liave the honour to enclose, for your Grace's information, a return and memorandum showing the number and composition of the Colonial forces of New -Zealand at the present date. Trom these documents your Grace will find that we have now on actual service— Oflicers and Men. Horses. 1 Cavalry Regiment - - 411 316 3 Infantry Regiments - - 3,617 Making a total force of 4,028 officers and men, all enlisted for three years, and that three Regiments, with the Militia and Volunteers actually under arms, make up a total force of 7,806 men now on actual service, and doing duty. I have. Ac, G. Gret. His Grace the Duke of Newcastle. Iv.G., &c. &c. &c.

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THE NATIVE INSURRECTION.