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E.-No. 2. ■ ■.:■ I

" dWtriuts wanted for settlement," will exclude the greater portion of the Natives now in arms. It is true that this may not be of much practical importance, as the Natives generally understood the terms on which submission will be accepted; but it may be hereafter desirable to embrace an eligible opportunity of officially announcing the terms upon which the Government are willing to grant peace to any of those who are in arms against the Queen* authority. It is also to be remembored that His Excellency's objection to offering terms for which Natives have not asked, and whom we have not Bubdued, applies equally to the Waikatos as to others; for although the Waikftto country has been conquered, the Waikato tribes have neither asked for peace nor have been reduced to submission. Ministers are equally anxious as His Excellency to encourago the well disposed of the former inhabitants of Waikato to return and live there in peace and security, under regulations framed with an evident view to their future welfare. Ministers arc, moreover, extremely anxious that no unnecessary delay should take place, and they beg respectfully to remind His Excellency that the first step towards carrying this object into effect is to determine the country that is to be used for the purpose. It has now for some time rested with His Excellency to express his opinion on the propositiou of Ministers that a line near the Punui River shall be taken for the location of military settlers, with a view to render the country between that place and Auckland available for the occupation of European settlers, and Natives willing to accept terms of submission. The whole operations connected with the location of settlers and Natives in Waikato are now delayed awaiting His Excellency's decision. As soon as this question of a line of protecting posts is determined, Ministers are prepared at once to proceed to carry into effect the legislation of the last session of the Assembly, by proclaiming districts under the New Zealand Settlements Act. Ministers cannot but observe that His Excellency sees objections and difficulties which do not appear to strike the Natives, or oppose obstacles to their accepting terms of submission offered by the' Government. It is quite new to the Ministers that there are Natives without guns who want to eomo in, and are forced to remain with the rebels, and to continue dangerous characters, because they have no guns to give up. Ministers would have thought that these men, if they desired to submit, would have profited by example, for about one half of those who have given in their submission in Waikato have been accepted, though thoy brought no guns with them. It must also be borne in mind that only those who have hcen fighting are required to give up their arms, which it does not appear unreasonable to assume that they must possess. Attempts will doubtless bo made by many who have arms to evade giving them up. and this practice will be more or less followed as it is found to be successful, or otherwise: Care and caution are no doubt requisite to avoid the evils which would result either from too great stringency on the one hand or too easy a lenity on the other. But for His Excellency's observation '"' that he"does not see the ends the Government propose to " gain," Ministers would not have considered any explanation on that subject to be necessary. Tho policy which Ministers declared on taking Office, the ends they proposed, and the means by which thoeo ends "were to lie attained, are the same now as then. Ministers have as yet seen no cause to change the views they then held, and they have not at present the slightest intention of doing so. Moreover they are not aware that they have said, written, or done anything which can be fairly construed into a departure from that which was affirmed by a large majority of the General Assembly. "If we have now '• hardly troops enough to hold that which we have got'possession of," the responsibility does not rest with Ministers ; they did not propose tho line of posts now occupied ; it was proposed to them by His Excellency, on the suggestion of General Cameron. Ministers, however, feel that it is but fair to add that the line now occupied as the frontier is simply that which the emergencies of the campaign have, imposed. The Maoris have fought Her Majesty's'forces up to that line, making determined resistance, at a succession of strong posts. They have been driven from these, leaving Her Majesty's Forces in possession of the country of which the line referred to is the frontier. Fortunately, it happens to be in the opinion of Ministers, confirmed by General Cameron, the very best line which could be taken with a view to the permanent occupation ot the countryMinisters regret that His Excellency should be of opinion that <; wo are yet doing that which tho " Governor fears will bring new enemies on us, and embarrass us in other quarters, without, at the same " time, being just and necessary in principle;" but Ministers must, at the same time, bo permiitod, most respectfully to state that they are quite at a lo«s to understand to what acts His Excellency refers in the passage just quoted from his Memorandum. Feedk. Whit^kkb. Auckland, 6th May. lsfi I. No. 11. MEMORANDUM by the Ggvebnok. The Governor has received His Eesponsiblo Advisers' Memorandum of yesterday's date, in reply to his Memorandum of the 3rd, on the subject of the Proclamation, which acting under their advice he had signed on tlic 30th April, 1864, but which had not been issued, and which it is not now intended to issue. . ... The Governor has for several months past never varied in his opinion, and has always maintained in speaking on tho subject, that the course of proceedings he advocated in his Memorandum of the 3rd of May was an advisable one. whilst it carried out strictly tho Legislation of the General Assembly.He is glad, therefore, that by writing that Memorandum ho has removed from the mind of his Ministers the impression that their Proclamation was in strict conformity with his views. The alterations made in it beforte he signed it, were in his belief absolutely necessary, but he always thought that his own phui was the preferable one. To meet the wishes of his advisers ho signed the Proclamation, but he felt it due to himself, to place his own views on record. If these views have no weight, they cannot

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