A.—No. 18.

REPORT ON THE STATE OF THE UPPER THAMES AND WAIKATO DISTRICTS.

Copy of a Letter from Mr. Mackat to the Hon. J. C. Eichmond. (No. 120.) Civil Commissioner's Office, Sic, — Auckland, 9th October, 1868. I have the honor to acknowledge the receipt of your circular of the Ist instant, forwarding copy of a statement made by a Native at Wellington respecting a reported assembling of Natives at Taupo, and requesting me to endeavour to ascertain whether any similar intelligence has been received by Natives in my district. In reply, I have the honor to state, that I have received no information from Natives as to any such movements at Taupo. It has been stated in the Auckland newspapers that Mr. Tetley, a sheepfarmer residing on land leased from the Natives at Taupo, has been ordered to remove from his run forthwith. I was at Ohinemuri, in the Upper Thames, on the 3rd, 4th, sth, and 6th October instant. I found the Hauhau Natives much elated at the recent successes of Titokowaru on the West Coast. A leading man said to me —" Kua puta te motu inainei ahakoa tv koe kite whawhai ki au inainei, kore rawa tetahi utu mou," meaning " The island is now free ; although you may fight against me, there will be no equivalent for you —or, you will not inflict any loss or punishment." I asked " How is that P" He answered, " Look at your prisoners who have escaped from Wharekauri (Chatham Islands). Look at Titokowaru. You have lost thousands of men ;we have lost none. We shall now regain the whole country. You must leave it, for the God has so decreed." I replied, " We have not lost thousands ; we lost altogether at Eauararu about twenty-eight men killed and wounded. Ecmember we also had many killed at Eangiriri and the Gate Pa, but recollect Orakau, Waiari, and Te Eanga followed, and the result was different; so will it bo with Titokowaru." I heard that a quantity of preserved human flesh, being part of the bodies of the unfortunate victims of the Eauaruru disaster, had been conveyed to Tokangamutu, and Matutaera indignantly refused to have anything to do with it. A woman named Mere Paura was the only person who offered to eat any portion of it, and she did this to satiate her feelings of revenge for the death of her husband in the Waikato war. Matutaera would not allow her to gratify her inhuman desire. I have been informed that a dispute arose some time ago between the ex-Lower Waikato tribes and Matutaera about the former continuing to reside at Tokangamutu, and the result was that they received permission to return and re-occupy the Waikato district. I regret to be compelled to state that the recent defeat on the West Coast and the escape of the prisoners from the Chatham Islands have had a very bad effect on the minds of both friendly and Hauhau Natives. The friendly Natives seem in a state of doubt and perplexity, and are half-inclined to believe in the invincibility of the Hauhaus as supported by their new religion. The Hauhau party were never so elated or exultant as at present, and they appear to think that they can carry everything before them. I believe the withdrawal of the European population from the Patea, or the re-taking of any confiscated lands elsewhere in the Colony, would be looked on as the signal for an immediate and almost universal rising of the aboriginal population of the Colony. I have, &c, James Mackat, junr., The Hon. the Native Minister, Wellington. Civil Commissioner.