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Europeans, for they have everything to lose ; as for the Waikatos, a small turbulent section, who have no land to risk, are eager for revenge for the loss of the Waikato country; but the bulk of them, including Tawhiao himself, are averse to fighting. Manuhiri not long since said that he had " ceased to anticipate death by the sword;" and further, that he would not "lift his hand, even to defend himself." The Tekau marua (the Twelve), —a political body founded by Te Whiti, of Taranaki, and consisting almost exclusively of men of no rank—are gaining influence with Tawhiao ; their motto is "Te rongo pai" (Peace), and their object to check the chief's, who, they say, have caused all the trouble. Tawhiao's influence for good is really very slight. He has, I believe, a firm hold on the affection of his people, but does not command their respect, and is afraid to take a decided stand on any point, for fear that the illusion of his authority over his people be effectually dispelled. In consequence of the repeated warnings about the selling and leasing of land, very few of the Kingites will admit that the slaying of Sullivan at Pukekura is a kohuru (murder) ; with them, it is simply a patu (killing) ; even Ngatitnaniapoto regard the attempt on Mr. Mackay's life as by far the greater crime. At the same time they think it only natural that we should expect utu (payment) for Sullivan's blood, and if Purukutu could be secured quietly, I believe that they would willingly let the matter rest; but the open advance of a European force into the King country even for the avowed purpose of pursuing the murderers of Sullivan, or the occupation of Kawhia, would, I am satisfied, lead to a war all along our Waikato frontier. Ngatimaniapoto, as a tribe, might for a time stand aloof, but the well-known Maori lust for excitement reckless of consequences, would be too much for the hot-blood of so warlike a people. Ngatiraukawa, on the west side of the Waikato Eiver, would, with a few exceptions, support the Hauhau party; but the bulk of the tribe, living on the right bank, are on our side. Since their meeting with the Hon. the Native Minister at this place last year, they have continued to show a very friendly spirit, and are reported recently to have leased large blocks of their land to Europeans. Te Kooti is still living with Ngatiinaniapoto at Upper Mokau. Although he came among them a fugitive a year since, his force of character has gained him a certain amount of influence, which, however, he does not appear to exert for evil, his desire being to live at peace ; but should the tribe go to war, he would, I am convinced, again come to the front. The visit of His Excellency Sir George Arney and the Hon. Mr. McLean to Kawhia in March last worked a wonderful reformation in the once turbulent Tapihana, who continues to evince the most friendly feeling. While on his way to attend the last Kuiti meeting he heard of the Pukekura murder, and to show his disapproval returned to Kawhia. A great deal has been said lately about the desirability of occupying Kawhia with an armed force to " overawe the Kingites" and at the same time put an end to the " trade in arms and ammunition." Were another Maori war an absolute certainty, the formation of a military post at Kawhia would no doubt be a useful step, although from the rugged nature of that country it would not answer as a base of operations ; but the occupation of Kawhia now would settle the question of peace or war, for the Natives would accept it as a casus belli, and we might be brought into collision with people with whom at present we have no cause of quarrel. The powder story, like many other " sensations" touching Native matters, promulgated recently by the press is a pure fiction. H.M.S. "Eclipse" and the Colonial gunboat " Luna " arc, I believe, the only vessels that have been inside Kawhia bar, or have communicated in any way with the Natives of that place since 1803. During the few years following the cessation of hostilities in the Waikato, some rifles and Enfield ammunition passed from the huts of militiamen to the hands of Maoris, and there has no doubt been some traffic in warlike stores at Ohinemuri and other places ; but taking everything into consideration, I am satisfied that the Natives of this district have never been worse prepared for a conflict with the dominant race than at the present time. I have, &c, The Hon. the Native Minister, Wellington. W. G. Maie.

No. 24. The Eesident Magistbate, Whangarei, to the Undee Seceetaey, Native Department. (No. 24.) Eesident Magistrate's Office, Sic, — Whangarei Heads, 17th June, 187.3. I have the honor to transmit the report on the state of the Natives in the Whangarei District, called for in your circular of the 27th March last (No. 3). The Native settlements, seventeen in number, are now occupied by about 300 men, women, and children, in the proportions shown in the statistical return which accompanies this report. Since 1856, the year I was appointed Eesident Magistrate for the above named district, the Natives have decreased very considerably, and settlements that were then, and for some years after, peopled with hapus of the Ngapuhi and other tribes, are now quite deserted. The causes -of the decrease of the Native population are various. At one time the Arawa and Ngatipikiau Tribes, from the East Coast, had a large settlement at Tamaterau, situated on the north side of the Whangarei Eiver: they left it, however, during the late war, and a few roofless huts and broken fences are all that now remain to mark the site of their once large village. Of the Natives of the Ngapuhi Tribe, the original owners of the land in this district, some have removed from time to time to Kaipara, the Bay of Islands, and Hokianga, and more have died of consumption and other diseases, brought on in many instances by their irregular habits, and imprudent excesses in drinking ardent spirits. Tho mortality has not been confined to the male adults, but includes also tho women and children ; and that so few of the latter are reared by their parents, may be attributed in a great measure to the want of nourishing food and warm clothing in their infancy. There are about 120 male adult Natives now living in this district. I consider them, with some few exceptions, loyal, well disposed towards the Government, and inclined to respect the law.

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