A.—No. 1,

DESPATCHES EROM THE GOVERNOR OF NEW

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likes with them,) and has for some time past been wishing for a favorable opportunity to occur by which he might escape from the position he has placed himself in. There is but one course to pursue, i.e., an unconditional surrender, which, in my opinion, cannot be effected but by reinforcements coming here immediately, in which case it might be possible to obtain it without a blow being struck. TJnless they see a strong force concentrated here, and also that we are prepared for any emergency, I much fear all negotiations with them will fail. I have, Ac, Hia Honor D. McLean, Superintendent, Napier. Eeginald Newton Biggs.

Appendix E. Mr. Fulloon to the Hon. Major Atkinson. Sir, — Auckland, 7th June, 1865. I have the honor to submit for your consideration that instead of my proceeding to Wellington, I should be permitted to proceed to Whakatane for the purpose of checking the spread and, if possible, suppressing Pai Marireism, and also of observing the Opotiki Natives, &c. I would also suggest for the consideration of the Government, the advisability of interdicting all trade or commerce in the Bay of Plenty—say from AVaihi to Cape Eunaway. As the Natives have or are now gathering in their crops of maize, wheat, and potatoes, and are very badly off for clothing, &c, and the cold winter season is now rapidly setting in, and so by interdicting all trade, would sooner bring them to their senses than anything else that could be done just now. It would also, in a great measure, affect the Pai Marircs. I have, &c, The Hon. the Minister for Colonial Defence, Auckland. James Fulloon. Memorandum by Mr. Holt. Mr. Fulloon was authorized verbally by the Hon. the Defence Minister to proceed to Whakatane, on his way to AVellington, as suggested by him in this letter. J. Holt, Hnder Secretary for Colonial Defence. Mr. Fulloon to the Hon. Major Atkinson. Sir, — Tauranga, 17th July, 1865. I have the honor to report for your information that I leave this for AVhakatane to-morrow. I have not been able to do so before from the inclemency of the weather. The news from the East Coast is that Dr. Agassiz and about thirty of the Opotiki Natives have left that place, and have gone to residence, Opape, the eastern boundary of Te AVhakauhia ; they have separated themselves from the others. Eparaima (the half-caste) has been compelled to leave Te Awanui, and is now at Opotiki. The Whakawheas are not in the least fortifying Opotiki. They hung two pigs at Ohiwa, in effigy of His Excellency and Lieut.-General Sir Duncan A. Cameron. There is great mortality amongt the Natives on the East Coast, as many as seventy-five died in one day at one settlement. As soon as I return from Whakatane, I shall immediately proceed to AVellington. The Hon. the Minister for Colonial Defence, Wellington. I have, &c, James Fulloon.

Appendix E. Colonel Warre to Governor Sir George Grey, K.C.B. New Plymouth, New Zealand, 2nd August, 1865. My Dear Sir George Grey,— In my endeavour to answer candidly and in a friendly spirit certain questions addressed to me in a private or semi-official letter (dated Auckland, Ist July, 1865) from Lieut.-General Sir D. A. Cameron, prior to his departure from this country, I have unfortunately exceeded my object, and he has arrived at a conclusion so entirely at variance with that I intended to convey, that I feel it is due to your Excellency and the Colonial Ministers, as well as to myself, to request you will do me the favor to make known to the authorities at home, to whom Sir Duncan Cameron intends to refer the question, how far he is justified in making the following remarks, viz.: — " Auckland, 26th July, 1865. "It was not without good reason that I asked you the questions contained in my letter of the Ist July, and I fully expected to find what you admit, that you have been in the constant habit of giving your opinions to the Governor and the Colonial Ministers freely on military operations and military subjects of every kind without my knowledge. I can hardly believe that your conduct will be approved of by the authorities at home." ********* The admissions contained in my letter to Sir Duncan Cameron were confined to the expression of my opinions, privately, on all subjects connected with the Native Insurrection, and in replying to questions verbally on any subjects that your Excellency or your Ministers while resident in Taranaki may have put to me. I appeal to your Excellency whether I ever presumed to offer such opinions as " advice," or whether I ever originated or suggested any military operations opposed to the known wishes or views of the late Lieut.-General commanding. I have, &c, His Excellency Sir George Grey, K.C.B. H. J. Wabre, Colonel.