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E.—No. 2,

Upon a most important point regarding which the Governor had a groat desire to satisfy his own mind, he was told that this point was fortified by Mr. Taylor's opinion being in its favour. This was not on a question of abstract right, but upon a question of what the national prejudice* and feelings on certain points would be, —on this subject Mr. Taylor's opinion would have carried great weight with it. The Governor, knowing Mr. Taylor, thought, and still thinks, that he was perfectly justified in asking Mr. Taylor what his opinion on this subject was. In order that, in forming his own conclusions, there might be no mistake, and, finding that Mr. Taylor had been misunderstood on a subject which involved the interests of an entire race, he thought that it could not be fair, either to the Natives, to Mr. Taylor, or the Colonial Secretary, to allow Mr. Taylor to be adduced as thinking one thing, when he really thought another, without affording Mr. Taylor an opportunity of explanation. He gave him this, and forwarded to the Colonial Secretary a copy' of Mr. Taylor's letter, advising him of every step in the transaction, —and now returns the copy of the Memorandum, for the Colonial Secretary to make any alterations in it he thinks necessary. The Governor would suggest, as the usual course, that Ministers should themselves forward their own Memorandum to the " Society for the Protection of Aborigines." He will forward that to the Secretary of State. G. Ghey. Government House, 3rd May. 1864. No. 9. MEMOBANDUM hy the Colonial Secretary. The Colonial Secretary regrets that " a misunderstanding " should have arisen in reference to the circumstances under which the Ecv. Mr. Taylor was invited to offer explanations of a quotation which the Colonial Secretary had appended to a copy of his remarks previously forwarded to His Excellency. The misunderstanding, however, the Colonial Secretary cannot admit to be on his part. The Colonial Secretary did not tell His Excellency that "on the most important point" of confiscation, he was " fortified by Mr. Taylor's opinion." The Colonial Secretary never appealed to Mr. Taylor's opinion on the point. He merely quoted a passage from Mr. Taylor's work, for the sake of the remarkable fact accorded in it, the expression of surprise by " Eangihaeata," that Governor Fitzroy had not confiscated the Wairau district, in which the blood of the Queen's subjects had been shed. It was Eangihaeata's surprise, not Mr. Taylor's opinion, to which the Colonial Secretary referred as " illustrating the feeling of the Natives." If he had intended to appeal to Mr. Taylor's opinion, he would have said that it " corroborated " his own, not that it " illustrated the feelings of the Natives," an expression which is perfectly applicable to the citation of the fact accorded by Mr. Taylor. If the Colonial Secretary had desired to rest his case on the opinion of a Missionary, His Excellency is aware that he could havo quoted that of a gentleman of much greater experience even than Mr. Taylor, and who fills a much higher office in the Missionary Church of New Zealand. The Colonial Secretary accepts without reserve H is Excellency's statement that he has not submitted the Colonial Secretary's to the criticism of any person whomsoever, in the sense in which His Excellency no doubt intends it, namely, that he has not permitted its perusal by any person. But, in inviting, oflicially, an expression of opinion in writing from the Eev. Mr. Taylor on the most material point ofthe document, and on which lie had already ascertained by conversation (as appears to have bt-en the ease), that Mr. Taylor's opinion was not in conformity with that ofthe Colonial Secretary, and with the intention of forwarding Mr. Taylor's letter to England with the Colonial Secretary's, the latter regrets to state that he still feels obliged* most respectfully to dissent from the propriety of the course pursued by His Excellency in this matter. In expuuging, as he has done, a portion of the quotation from Mr. Taylor's book, and all reference to his name, the Colonial Secretary has acted solely with the desire to prevent an irrelevant discussion in connection with an official document, where he conceives it would fee misplaced, and to engage in which, as already stated, he has not time. "William Pox. Auckland, 4th May, 1864. No. 10. MEMOEANDUM by the Governob. The Governor has received the Colonial Secretary's Memorandum of this day's date, regarding a quotation which had been made from the Eev. E. Taylor's work on New Zealand. The Governor had hoped that his Memorandum to the Colonial Secretary of yesterday's date, would have put an end to this matter. But as the Colonial Secretary still officially records his opinion that the Governor has adopted an improper course of proceeding, it would be satisfactory to the Governor, in order that there may be no misunderstanding as to what he has done, if the Colonial Secretary would now allow the Memorandum as it originally stood to be filed in his office, accompanied by copies of the correspondence and memoranda in relation to it, and with any alterations the Colonial Secretary may wish to make in it. In this manner the Governor's proceedings in this matter can at any time be"referred to. If the Colonial Secretary wishes, these papers can also be referred to the Secretary of State. GK Grey' May 4th, 1864.

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