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E.—No. 1.

Karaipi Te Kuri (chief of Pokeno), urges that the timber he sent back. AVilliam :" I shall never agree unless you give up Pokeno to me, and then I will agree. As it is, work your own work on your own place, this is my place for me to work my work upon." Hika (Wharepu's brother) : " Listen, my grandchild ; say the word that the timber is to be taken to the Ia or that it is to be left here—do not conceal your design. The nation has seen that this is death. Therefore now return to the foundation of your eldest brother. This work has been worked for you both." William : My father, lam living here in New Zealand. Tou have a work, and 1 havo a work. I have never thought your work a right one, though you have rejected this wealth, as wealth, for years." Maihi ltori (an"' upoko runanga' of the Government) : "Listen, my babe, my brother, yield to the nation. The nation has seen it is death, leave it as the nation has seen it." This was the end of the speaking, and Tamati Ngopora, Ngatiteata, and the assessors and ' upoko runangas' of the Government went away. On the following morning, the army prepared to throw the timber into the river, but as the people of the Kohekohe were on the alert, the attempt was not actually made until the evening. Eight men and twelve women were engaged in pulling out the timber as fast as it was thrown in. A great deal of blood was drawn by the sharp edges of the scantling. At last the army was tired, and gave up the attempt. Only six pieces were floated away, aud all have been recovered. On AVednesday, after a good deal of threatening and quarrelling, the hostile party retired, promising another visit at an early date. __. Waata Kukutai has written to say that Ngatitipa will come up to tbe Kohekohe and take William Te AVhcoro's part. He refuses to allow the timber to be taken away, and is bent on a desperate resistance. March 17th, 1863. J- ■*■■ (jORSTNo. 36. MEMORANDUM by His Excellency Governor Grey. I have carefully perused this report of the recent disturbance at the Kohekohe. ____ja_____a For the last year and a half my attention has been repeatedly called to the more than doubtlul conduct of Tamati Ngapora and of Aihepene. I believe that our taking no steps in reference to such men is attributed to bad motives upon our part, instead of to generosity. I would now advise that Ihaka, Mohi, Tamati Ngapora, and Aihepene should be written to and informed, that their speeches and conduct in this late affair at the Kohekohe are such as to subject their good faith to serious suspicion, and clearly are in breach of their duties as subjects of the Queen, receiving considerable annual payments from Her Majesty ; and that I have therefore directed that no further payment on account of either pensions or salary should be made to them from and after the Bth day of March, 1863, until they have cither given satisfactory explanations of the acts and speeches of which they are accused (and that it shall be formally communicated to them if they desire any inquiries into these matters), or until they have by future good conduct established renewed claims on Her Majesty's consideration. ~,,*.,; I would also advise that AVi Te AVheoro and Puteruha should be written to and told, that those men state falsely who say, that if a house is built with our timber on their land, then the land will pass to us ; that, on the contrary, according to our laws, the house becomes the property of the natives who are the owners of the land. ~.,■, I would further advise that AVaata Kukutai and AVi Te AVheoro should be written to, and told that the Governor's attention having been drawn to their frequent faithful services, and to their constant efforts to preserve the peace of the country, had directed each of their salaries to be increased £50 a year, from the first day of the present year. I would not object to their salaries being each increased by £100 per annum. # I also think that an increase should be made to the salary of Eraihia Makomako, and that some reward should be gi\ .ii to Puteruha, . „,„.,„ , To each of the twelve women who pulled out the timber I would give a pension ol (£o) five pounds a year for their respective lives, in remembrance of their good conduct on this occasion ; and to each of the eight men who rescued the timber, I would give a silver watch, with their names, and the date on which°they rendered this service, engraved upon them. _ • I think a full account of the measures taken by the Government should be published in the native language. 0 „ March 21st, 1863. U- (tREYNo. 37. The Hon. the Natite Minister to Matutaera. Friend, Matltaera, — . Salutations. The Governor has received a letter from AVilliam Te AVheoro, complaining ot a party of about two hundred men having come down to his place to attack him, and throw into the river a quant il v of timber which had been sent up for the school and other buildings that are to be put up by him at the Kohekohe. The Governor understands that these men said they were acting under your authority, and the Governor desires me to repeat to you, if this really be the case, the warnings he has often sent you of the consequences of allowing these evil things to be done in your name. What right has a party to come down and destroy the property of Te AVheoro, living peaceably on his own land? Do you*believe it is possible for the good to prevail if these robberies and evil-doings are allowed? Only the other day, you aud your runanga publhhed a declaration full of peaceful words and good thoughts, and ike Governor wrote to you expressing his satisfaction at the work. But the ink was hardly dry, when letters came down with news of this business at the Kohekohe. While here

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