THE GOVERNOR AND MINISTERS.

7

A.—No. 1.

by volunteer Bushranger and Cavalry Corps, all of which have hitherto clone excellent service ; and, in case of emergency, by the whole Militia of the district. It is submitted, that a force of the nature proposed has been proved to be more effective, for the special purposes required in New Zealand, than large armies organised with a view to European warfare. Such a force at least, may, it is hoped, be within the reach of the Colony. The possession of it would entail no liability to interference in the management of our internal affairs; whilst, on the other hand, New Zealand has neither the means nor the desire to retain an Imperial army. Ministers advise the reduction of the Imperial force in New Zealand, and believe that, with the assistance of the Imperial authorities, a few months would enable them to supply, as far as necessary, the place of all the, troops now present in this country. It is intended that the proposed force shall consist of— Europeans 1350 Maoris 150 Total .... 1500 It is hoped that the European portion may be obtained from the Regular troops, permission having been asked from the Home Government to allow enlistment from the regiments now serving in New Zealand. Should that permission be refused, the men will be enlisted from other sources. The force will be divided into 30 companies, of 50 men each, and distributed as shewn below, with such alterations from time to time as circumstances may render advisable. 1. On the line of communication from the Queen's Redoubt southward, and between the Waikato and Waipa rivers ....... 6 Companies. 2. On the line of the Waikato river, from the Bluff, or Queen's Eedoubt, to Pukorokoro, on the Frith of the Thames ....... 3 " 3. In reserve at Papakura and neighbourhood ....... 3 4. At Tauranga 1 " Total in Province of Auckland . . . . . . .13 Companies. 5. In the Taranaki and Wanganui districts, extending from the North of the Waitara river to the Waitotara river . . . . . . .12 Companies. 6. At Wellington 1 " Total in Provinces of Taranaki and Wellington . . . .13 Companies. 7. At Napier, Province of Hawke's Bay ........ 4 Companies. The force will be armed and trained with a special view to the service required. About one-tenth of the men will be mounted, part trained as Artillery men, and the whole taught to ride. Itis proposed to post the detachments in goodnatural positions, with the view of forming centres round which the population on the frontier may rally in times of danger. The reserves will occupy central positions. In addition to the Constabulary force, Ministers propose to maintain one small steamer, for service upon the Waikato, and to visit occasionally the Patea and Wanganui rivers. In considering the question of the internal defence of the Colony, it must be borne in mind that in addition to the ordinary Militia and Volunteer*, numbering 61(35 men in the Northern Island, there are upwards of 4000 settlers who hold their land under a quasi military tenure. Of these, some at least are liable to serve for the next eighteen months in any part of the Northern Island of New Zealand. In the Waikato district, the location of these men upon their farms has commenced ; but the large majority of them are still on pay, and Ministers propose to retain on pay a sufficient number to garrison the necessary posts until the Constabulary force is raised. The following financial estimate will shew, with sufficient accuracy, the annual amount to bo provided: — Constabulary force of (say) 1500 men £127,000 Militia and Volunteers 30,000 Steamer 5,000 Contingencies . 25,000 £187,000 It is thought that there will be no difficulty in obtaining the requisite number of men from the regular troops, at the rate of Is. 6d. a day pay, with rations and clothing. Upon this the foregoing calculation is based; but should the men be enlisted from the civil population, the sum of £59,000 must be added to £187,000—making the total £24G,000. Ministers here observe, that it is an indispensable condition of their proposed plan, that the whole Colonial force should be under the absolute control of the Colonial Government. In submitting these plans for providing for the internal defence of the Colony upon the withdrawal of Her Majesty's Land Forces, Ministers desire at the same time to point out the means which the Colony has of giving effect to these plans, as well as the limits within which it is necessary to confine their Military expenditure. If a stop is put to the present war expenditure, the Colony will, as Ministers believe, be able to bear the charge they propose to undertake, but not otherwise. At the present moment, indeed, they are dependent on advances from their bankers for the means of providing for current expenditure. They owe their bankers, on an overdrawn account, upwards of £250,000, which it is intended to repay by sale of Colonial securities ; but as yet they have been unable to find a sale for them to any considerable extent. Ministers have made, as they believe, arrangements which will enable them to take advantage of any improvement in the London money market, but they wait advices from London. Meantime they are in peril, at any moment, of their bankers refusing to meet their current payments. This state of things, though full of anxiety and difficulty, is, however, aa Ministers hope and believe, only temporary. The remainder of the Three Million Loan of 1863, bearing an increased rats