E.—No. 2A.

As to Mr. Maekay's report. Ministers will only observe that it appears that Thompson well understood the terms upon which the Government have hitherto accepted, the submission of rebels, and were still willing to do so ; and it was in reference to those terms that Thompson expressed his willingness to meet his people with the intention of ascertaining their feelings relative to the war. Ministers believed that to volunteer new terms, not asked for, would be a mistake, and likely to defeat rather than effect the desired object. Auckland, 4th October, 1K64. F. Whitakbb. Enclosure to No. 5. At the interview of Wednesday, the Governor shewed Mr. Wood a report from Mr. Baker to Mr. Fox, remarking upon opinions said to be held by the Military. His Excellency stated that he considered such a report an improper one. Mr. Wood remarked that it was no doubt true, as Mr. Cardwell, in London, had read to him a letter from a military man, which he said was only a specimen of many, accusing the Ministers of prolonging the war, and closing the avenues to peace. His Excellency replied in these words : " That is exactly what they are doing." And again, in an interview on the following day, the Governor himself stated to Mr. Wood that Ministers were " prolonging the war." October 4th, 1864. Reader Wood.

____„ _^ No. 6. MEMORANDUM by the Goykkntob. The Governor is anxious to make the following remarks on the Memorandum by the Colonial Treasurer of the Ith instant, enclosed in the Ministerial Memorandum of the game date. The Colonial Treasurer says: —" The Governor shewed Mr. Wood a report from Mr. Baker to Mr. Fox remarking upon opinions said to be held by the Military. His Excellency stated that he. considered such a report an improper one. Mr. Wood remarked that it was no doubt true, as Mr. Cardwell in London had read to him a letter from a military man which he said was only a specimen of many, accusing the ministers of prolonging the war and closing the avenues to peace. His Excellency replied in these words, ' that is exactly what they are doing.' '•' The Governor begs to call attention to the Report from Mr. Baker, which the Colonial Treasurer told the Governor was no doubt true, it is as follows: — " Arrived at Te Papa about noon found everyone in a great state of anxiety and excitement regarding the peace movement, which the military seem to look upon as the first step towards their return, home. From what 1 can learn, there appears to have been some degree of pressure brought to bear upon the qiiestion, and there seems no doubt about the fact that overtures were made from the Government side/' Again Mr. Baker states in his Report: " Called at Mr. Black's house, where we stayed some time, being desirous of ascertaining the views of a person who, from his residence amongst them, was most likely to know their intentions. He does not appear to look favourably on the present movement, and referred to a conversation with one of the Meld Officers now in camp, who emphatically declared that he did not care on what terms peace was made so long as it resulted in their removal from the country." " The military are tired of foreign service, and having no stake or interest in the country, care not for the future troubles and perplexities that may arise out of an error in the system upon which terms of peace are negotiated. The war is unpopular with them and their chief care is how quickest to get out of it. It is in liiis way that pressure has been brought to bear upon the question." At the time Mr. Baker made this Report to the Government, he was acting as Interpreter to the Forces, and had been ordered to obey the instructions of Colonel Greer, who had no knowledge that such reports were being made of him. It was also admitted, as the Governor understood, that Mr. Baker was wrong in the view he took with regard to the submission of the natives, yet no expression of censure was passed upon him. It was these statements against the military, and the military authorities at Tauranga which the Governor understood the Colonial Treasurer to say were no doubt true, for the reasons he gives. Ten officers and thirty four men have already laid down their lives at this very place, Tauranga, fighting for the Colony, besides the large number who were wounded. Colonel Greer also, against Whom the principal accusation lay, had rendered the most essential services there ; and it was remarking on these proceedings that the Governor expressed the opinion alluded to. Government House, Auckland, 11th October, 1864. G. Guet.

No. 7. MEMORANDUM by Mdtistbes. The Colonial Secretary begs to acknowledge the receipt of His Excellency's Memorandum of the 11th October, containing some extracts from a Report by Mr. W. Baker, in which that gentleman records a conversation between a Mr. Black and a " Field Officer," at Tauranga, and expresses his own opinion as to the feelings of the military in reference to the service on which they are employed in this Colony. The Colonial Secretary is not aware with what object His Excellency has addressed this Memorandum to his Ministers ; whether by so doing he intends to add the weight of his own testimony to that of Mr. Baker on the point ; or whether he refers it to his Ministers merely in order to elicit their remarks. The Colonial Secretary begs to make the following remarks on His Excellency's Memorandum: — 1. His Excellency is under a misapprehension in supposing that either Mr. Baker or Mr. Black made any allusion to Col. Greer in the passages quoted by His Excellency. The statement was made of a "Field Officer," a rank of which there were several officers at Tauranga. The Colonial Secretary

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RESIGNATION OF MINISTERS, &c.