E.—No. 5.

No. 5. Ml{. 11. E. BICE TO THE HON. THE NATIVE MINISTER. AVellington, March 29th. 1565. Kir— • I have the honor to report, that in accordance with instructions received from the officer commanding the Tauranga District, I proceeded in Her Majesty's ship Eclipse, to the East Coast, on the 11th instant. Calling off the Kawakawa Roads, I forwarded a communication to Mr. White, and advised him of our intended return to pick him up if he wished to leave, and on Monday, the 13th, we anchored off Turanga-nui. I accompanied Bishop Selwyn and Commander Fremantle to Bishop William's station, where they found about 300 Natives, nearly all armed. They had assembled to consider what steps were to be taken relative to the Pai M wire Fanatics, then only one and a half miles distant from the station. A request had been sent by them—Pai Marires—to the resident natives, to be allowed to pass through Turanga. This and other matter caused the assemblage we saw. Bishop Selwyn addressed them at some length, principally relative to his conduct in Waikato. I was requested to speak to them, and, briefly referring to the late murder, asked them if they were prepared, as loyal natives, to arrest the murderers. They declined, and gave as their reason —their fears for Mr. Grace's safety. This gentleman had been left at Opotiki in the supposed safe keeping of the Whakatohea. From Mr. E. B. Clarke I learned that there was a feeling tending favorably towards these fanatics, and that they had made the same reply to him when he volunteered to go out and take the party —only 30 —prisoners. Two Natives were detached to accompany us to Tauranga with a letter from the Runanga to Hori Tupaea. This chief was to be sent to Opotiki in exchange for Mr. Grace. I enclose translation of the letter —the original I did not get. We left Turanga on Tuesday, the 14th, and called oft' Kawakawa Roads. No answer had been received from Mr. White. We spoke the Lady Bird after leaving the roads, and the Messrs. Williams came on board. I then proposed to Captain Freemantle that we should endeavour to procure Mr. Grace's release by sending the two natives ashore at Opotiki. He approved, but the Messrs. Williams dissented on the ground that Mr. Grace would be subjected to fresh indignities so soon as the man-of-war was sighted. We called at Oahiao, and from this place I sent messages to Tataua and William King, friendly Natives residing at Tunapahore, asking them to come off to us at that place. We anchored off Tunapahore and waited for the Natives, but they did not make their appearance, so at day-break we steamed to Opotiki, anchoring in the roads, about one mile from the mouth of the river. We took the Natives in the boat to the shore, and pulled on board, awaiting the result. Shortly after this a boat came off; it contained Mr. Levy and brother, and three others. From Mr. Levy I learned that Win, King (the Native referred to above) was in Opotiki, and wished to come" on board the Eclipse. I asked him to fetch him, and he left to do so, leaving his brother only on board our vessel. About one hour passed and the boat returned, Mr. Levy bringing Mr. Grace with him and not William King. The rev. gentleman had escaped, and to Mr. Levy he is indebted for his safety. It appears that on our lauding the two Natives, the resident people went inland two miles to a Runanga. Our Natives and William Kiug accompanied them, and, as usual, every one cleared out of Opotiki Village to hear the news, leaving Mr. Grace his own keeper. Mr. Levy found him alone, and after securing some of his own property, took him into the boat and brought him oft*. I accompanied Lieut. Belson, in charge of two boats, to tow out the schooner Eclipse; she was lying at the mouth of the river waiting for a fair wind —bound to Tauranga with a letter to the Government, conveying the terms upon which Mr. Grace would be released. All but one European (a Dr. Agassi/.) were on board, and in about two hours she was anchored astern of us in the roads. During the next fourteen hours we were negociating for the return of our twoj|Natives, who were detained because of Mr. Grace's escape. On the Friday morning, about eight a.m., they were released and came on board. A very large number of Natives came on the beach and carried on their antics round their Pai Marire flag, which they had planted between two boat ensigns. They seemed to be all armed, and in the conversation I had with them —at about twenty yards distance —assumed a very dictatorial tone. The two Turanga Natives are now at Mr. Chapman's. Mr. Levy, sen., took his passage with us in the Eclipse, to Auckland, at which place we arrived on Saturday, at nine p.m., the 18th instant. I have, &c, The Honorable the Native Minister, Henry E. Rice. Wellington.

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PAPERS RELATIVE TO THE MURDER OE THE REV. CARL