E.—No

No. 1. Copy of a DESPATCH from His Excellency Sir George Grey, X.C.8., to His Grace the Duke of Newcastle, K.G. My Lord Duke, — Government House, Auckland, 6th April, 1864. Your Grace is aware that upon the 20th of November last, 183 natives were taken prisoners at Rangiriri; amongst these men were some Chiefs of rank and consequence. They have since been kept in confinement on board the hulk " Marion," in the harbour of Auckland ; and up to this date, nothing has been decided with regard to their fate. 2. I have repeatedly pressed upon my Responsible Advisers the propriety of coming to some decision upon this subiect. I believe that the uncertainty which hangs over the course intended to be pursued with regard to these prisoners—and consequently, with regard to any other prisoners we take —induces a spirit of desperation amongst the native population, which, whilst it is sad to see, is quite unnecessary; as lam satisfied that, although tho Colonial Ministers seem unable to make up their minds as to the course they should advise me to pursue, they wish to see the prisoners generously and leniently dealt with. 3. *The enclosed letter, received from a well-informed native chief on the 4th March last, will show the feeling prevailing amongst the natives. He states that the cause of the sadness of the Waikato tribes, and of their determination to persist, even to death, in the course on which they have embarked, is their belief that the chiefs of Waikato, whom we have taken prisoners, and who are kept in close confinement on board a hulk, will, when the war is ended, be transported to some island, where they will be imprisoned, and then hanged. 4. I also enclose copies of a correspondence between myself and my Responsible Advisers, in relation to this subject, from which your Grace will see, that upon the 9th ultimo, they undertook that upon the return of the Colonial Secretary from Kaipara, they would be prepared to take the case of these prisoners into consideration, with a view to immediate and final action ; but as yet nothing has been done in this matter. I have, &c, His Grace the Duke of Newcastle, K.G., &c, &c, &c. G. Grey. P.S.—Since writing this Despatch I have received from my Responsible Advisers a Memorandum, a copy of which is enclosed, advising me as to the course they think should be pursued in regard to the Rebel Prisoners. AVhen I have had time to consider this Memorandum, I will reply to the Colonial Ministers, and forward to your Grace a copy of my reply. I will only at present state that my own opinion is adverse to bringing a considerable number of the prisoners to trial. If such a step can in any way be avoided, I would prefer releasing them on parole. • Enclosure 1 to No 1. To Mr. Fox and Me. Shoetland, — Friends, salutations. I have only just heard of the reason why Waikato persists in their evil course. They have been informed by some person that the Chiefs of Waikato, when the war is ended, will be brought to trial and then transported to some island, after which they would be imprisoned and then hanged. This is the cause of their sadness, and in persisting in their evil course unto death. When Ngawai heard of these words her heart started with love (towards her people), and a desire sprung up to go and hear tho Governor's and your words. She has also expressed a desire that she should proceed to Waikato, to (endeavour) to suppress their wrong doing and cause the fighting to cease. But it is for you to decide. Should you think well of the (proposal) write that I may know. Should you not agree to it, write. Should you both consent to my word, let Mr. Rogan again come to accompany us to Waikato. That is, if you think well, myself and AVaata Kukutai would take our sister (Ngawai) to make peace with the Chiefs of Waikato, and cause their King to be suppressed, and their flag to be given up, and the guns and all instruments of war to be given up to the General. Should they (the AVaikatos) listen, it will be well; if not, let them be as children of evil on the earth, and cause the great rod to touch them. O friends, let this be an act of favour on our part; after which leave them to their own desires, should they still persist in their evil course. Enough. From your loving friend, Waiuku, March Ist, 1864. Aihepene Kaihau. Enclosure 2 to No. 1. To the Governor, — Salutations. I have only just understood the reason why they (the Waikatos) persist in the evil. They have been told by some persons that " you, the Chiefs, when the war is ended, will be brought to trial, and then taken to another island, after which you will be imprisoned, and then put to death." This is the reason why they persist in fighting. When they heard these words they were sad, and then said —What of it, we will give (ourselves) to the death —we will continue fighting until death. That thought commenced at Rangiriri, and has gone with them to tlie place where they now

Aihcpenc Kaihau's letter. V. E. No.L, (Part II.), pp. 1 to 3.

DESPATCHES FROM GOVERNOR SIR GEORGE GREY, X.C.8., TO THE RIGHT HON. SECRETARY OF STATE.