A.—No. Ib.
The successes, if such they may be called, obtained during the last few months, have been partial and local, and have been gained over rebels who represented comparatively small sections of the disaffected Maori community. The King party, and the tribes under its influence, have hitherto, except as far as individuals are concerned, held aloof from the struggle. The progress of operations conducted by the late Government has, however, been in the direction of the King country, and, at tho time of the present Ministry taking office, a week ago, had actually reached its verge. The result is a very excited state amongst that section of the Native population, and reported threats on their part. The rebel chiefs who are engaged in open hostilities, are understood at this moment to be personally urging on the King and his immediate adherents the expediency of joining them. The pecuniary resources of the Colony are quite inadequate to continuing the struggle at the present rate of expenditure, and the immediate reduction of the local forces appears inevitable. Including the provision which the Assembly is about making for meeting the liabilities which will have to bo satisfied during the next few weeks, the floating local debt of the Colony, in short-dated obligations, will amount to nearly half a million besides the loan liabilities. Clearly an expenditure in excess of revenue in reliance upon local loans cannot be continued. Still, if no new phase of the question arises, the Colony hopes to hold its own until its position can be again fully laid before the Imperial Government, unless, by the removal of the troops, fresh encouragement is given to tho rebels to commit acts of aggression. The Natives are known to have been anxiously watching the action of the Imperial Government in reference to the removal of the troops. So long as a single regiment remains, they are impressed with the belief that the Queen has not abandoned the Colony; but they have often said, " Wait till the tide is out," meaning till the last soldier leaves the Colony. When that event takes place, a direct encouragement will be given to rebel Natives to commit further acts of hostility, the loyal Natives will be greatly disheartened, and an impression will be produced amongst all classes of Natives that they may choose their own time for involving the Colony in a war of races. A force far larger than was ever contemplated by those who projected the system of self-reliance has been employed during the past year, at a cost which the Colony is utterly unablo to continue, while the results have been only partial local successes, to a great extent counterbalanced by reverses. The prospect of peace, in the opinion of Ministers, materially depends upon the retention of the small body of Imperial troops in the Colony, as an assurance to tho hesitating King party that the Colony is not finally and absolutely deserted by the Imperial Government. Ministers deem it their duty to represent to His Excellency these very gravo circumstances, so full of peril to the lives of Her Majesty's subjects in this Colony, and to express their earnest trust that His Excellency will be able, consistently with his duty to the Imperial Government, to take such steps as will delay the departure from the Colony of Her Majesty's 18th Eegiment until the Home Government has again been communicated with on this subject. The last paragraph of the Duke of Buckingham's Despatch No. 127, of the Ist December ultimo, clearly indicates that such a responsibility might devolve on His Excellency. Ministers aro prepared to ask the Assembly to make provision by Act for paying the troops according to the rate demanded by the Imperial Government. Por His Excellency the Governor. William Pox.
No. 7. Copy of a LETTER from Sir Erederic Rogers, Bart., K.C.M.G., to the Under Secretary of State for War. Sir,— Downing Street, 7th October, 1869. I am directed by Earl Granville to acknoAvledge the receipt of your letter of the 4th instant, in which you enclose the copy of a Despatch from Sir Trevor Chute, informing the Secretary of State for War that he has postponed the withdrawal of the 2-18 th Regiment from New Zealand. I enclose, with a copy of the answer which has been returned to it, the copy of a Despatch from Sir G. Bowen, reporting that he had transmitted, without any favourable recommendation on his part, to Sir T. Chute, an application for this postponement made by the two Houses of the General Assembly, and transmitting various documents which conveyed a request that the Regiment might be alloAved to remain in the Colony. Tou are aware that this request had already reached Lord Granville in a Telegraphic Despatch from the Governor, but that Her Majesty's Government had not felt at liberty to accede to it. Lord Granville has been unable to give any different answer to the application now more formally made to him, and he directs me to request that you will move \ Mr. Secretary CardweH to instruct Sir T. Chute to give effect without delay, and whatever communications he may receive from any quarter, to the instructions which he has received to remove the 2-18 th Regiment from New Zealand. I have, &c, The Under Secretary of State for War. EREDERIC ROGERS. 18
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AND THE GOVERNOR OE NEW ZEALAND.