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A.—No. 1.

therefore it would be useless to convene the General Assembly of New Zealand with a view to obtaining the appropriation asked for. 3. Under these circumstances, as no discretion is left me by your Despatch, nothing remains for me but to place at the disposal of Major-General Chute, Her Majesty's Eorces in New Zealand, with a view to their early removal from this Colony, which I shall do ; but with a view to prevent any serious difficulties from arising here which I know it would be your earnest wish to avoid, I shall advise Major-General Chute only to allow Her Majesty's Eorces to leave the Colony at the rate of one Regiment every two months, which is the period of time the military authorities have reported they require for the convenient embarkation of each regiment. I have, &c, The Right Hon. Edward Cardwell, M.P. G. GREY.

No. 28. Copy of a DESPATCH from Governor Sir George Grey, X.C.8., to the Right Hon. Edward Cardwell, M.P. (No. 14.) Government House, Wellington, Sir,— 13th January, 1866. I have the honor to enclose for your information the copy of a Despatch from Major Eraser, containing the details of an action between Her Majesty's Colonial Forces under his command, and the Hau Haus fanatics on the Wairoa River, near Napier, on the 25th ultimo, in which Her Majesty's Colonial Eorces, European and Native, behaved with great gallantry, defeating the enemy with considerable loss on their side, but I regret to say with the loss of a very valuable and gallant officer, Captain Hussey, and of one Native upon our side. I have, &c., G. GREY. The Right Hon. Edward Cardwell, M.P.

Major Fraser, December 27, 1865.

Enclosure in No. 28. Major Fraser to the Under Secretary for Colonial Defence. Sir, — Maru-Maru, Te AVairoa, 27th December, 1865. I have the honor to report for the information of the Minister for Colonial Defence, that, in accordance with instructions received from His Honor Mr. McLean, I commenced active operations at the Wairoa as soon as possible after my return thither from Napier. Having organized an expedition, consisting of Captain Hussey's Company and part of my own, and part of the Chiefs Kopu, Ihaka, AVhaanga, and Karauria's tribes, I started from Te Wairoa on Saturday, the 23rd instant, and marched about nine miles, camping for that night about two miles above the junction of the Wairoa and Waiau Rivers, and about four miles from the enemy's first position. I remained at this place until Monday morning, when, after divine service, we made an early start and proceeded toward the enemy's pa, which on arriving at we found deserted. This pa had evidently been originally an old fighting pa, and the Hau Hau had intended making it a strong position, as they had palisades ready for the purpose of strengthening it. Nothing but our quick advance saved our having some trouble both there and along our whole line of march, there being many places suitable for ambushes, and the ground being such that every step might have been contested. I will now explain the different positions of the enemy, so that the Government may thoroughly understand what lam about to relate. This pa that I have mentioned was on the right bank of the AVairoa, on the left bank of which, directly opposite, was a kainga, in which were several whares, a flagstaff, <fee.; near it were large cultivations. The enemy had deserted this kainga, and had separated in two different directions ; some had gone to another kainga, about a mile and a half off, situated on a creek which runs into the Wairoa, and called " Maruhakeke" ; the remainder had taken to the hills, where subsequently we discovered that they had a large unfinished pa. The Chiefs and I held a consultation on our arrival as to what was best to be done. We could see the Hau Hau flag flying in the pa on the creek, and we determined to send a flag of truce to them in order to give them an opportunity of surrendering unconditionally before blood was shed. They treated our message with contempt, and I accordingly hoisted the Uniou Jack, opened fire, and marched in the direction of the kianga Maruhakeke, with all the Europeans and about 150 Natives. Captain Hussey was in command of the advanced guard ; he pushed on with a few men too hurriedly—the main body could not keep up with him; the consequence was that the approach to the kainga being very sudden, and it being occupied by a large number of rebels, this gallant officer was shot, and died in a few moments while bravely leading the few men with him up to the position. About three minutes afterwards the majority of the men had got to the ground. I had been on the spot myself before Captain Hussey was killed,

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ZEALAND TO THE SECRETARY OF STATE.