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G. But, to speak candidly, he felt a reluctance in coming finally to this decision, for he wished to oblige the Governor, and also feared that he might give him serious offence if he did not meet his wishes in regard to the " Hinemoa." 7. As ho this day stated to the Governor, it was from such a hesitancy that he did not write to him upon the subject; and he thought that before or after this day's Executive Council the Governor might possibly mention the subject —that Sir George Grey could then explain the matter more fully— that there was a chance that His Excellency would have acquiesced in the views offered to him—and that, as the Governor had not himself written upon the subject, the whole matter might have been disposed of without any written documents passing. 8. Sir George Grey tried to-day to explain this to the Governor, who would not listen, but said it could not be explained; and Sir George Grey then assured him, in answer to the charge of his conduct having arisen from intentional disrespect upon his part, that such was not the case —that no disrespect had been intended; when His Excellency thought it right to reply that it would take a great deal to convince him that intentional disrespect had not been intended. 9. Sir George Grey has only further to say that he kept nearly silent at the Council to-day, as wishing not to be involved in what he regarded as a most unseemly scene, the Governor having treated him in an angry manner, and having replied to his assurance that no intentional disrespect was meant, that it would take a great deal to convince him that no disrespect was meant. 10. Sir George Grey thinks it right to say that, feeling what is due to himself in his private capacity and as Premier of this colony, he certainly cannot again attend the Council unless summoned upon some affair of special importance, because he will not subject himself to what he regards as insulting manner and disrespectful words ; for nothing in His Excellency's position justifies him in treating Ministers, or, indeed, any gentleman, in the manner in which he this day treated Sir George Grey. Wellington, 14th January, 1879. G. Grey.

No. 2. His Excellency the Govebnoe to the Peemiee. Memorandum for the Son. Sir Georqc Grey. The Governor presents his compliments to Sir George Grey, and begs to acknowledge (this day) the receipt of his memorandum of the 21st instant, which he requests may be added to the minutes of Council, in reply to what took place at Council on the 14th instant. Sir George Grey enters into various reasons why, in his opinion, it was undesirable that the " Hinemoa " should leave New Zealand. The Governor readily admits that there may be many reasons, including the possibility of a murder being committed by a lunatic, which might lead Sir George Grey to the conclusion that the use of the "Hinemoa" should not be granted; but he must again remind Sir George Grey that these reasons, however good they may be, are entirely irrelevant to what took place at Council, because the Governor took especial care to point out that what he complained of was not the question as to whether the use of the "Hinemoa" was or was not granted to him (which he always stated was a question entirely within the discretion of Ministers), but that no answer whatever had been vouchsafed to his request by Sir George Grey, although five out of the seven members of the Government had expressed themselves favourable to the proposal. The Governor first made the suggestion to Ministers on or about the 10th of December, and they assured him that they would at once communicate with Sir George Grey on the subject, and subsequently told him that they had done so. The Native Minister also, before leaving for the North, called and assured the Governor that he would speak to Sir George Grey on the subject as soon as he saw him, and that he would telegraph the answer to him in a few days, but that he was sure that it would be all right. After Sir George Grey's arrival in "Wellington, the Postmaster-General informed the Governor's Private Secretary that he had again spoken to Sir George Grey, and that he had promised to send an answer that day. The Governor had no reason whatever to doubt these assurances which he had received from the various Ministers in town ; and, therefore, having waited until the 14th of January, a week after Sir George Grey had arrived in Wellington, he could naturally draw no other conclusion than that the delay was caused by Sir George Grey purposely abstaining from giving any answer, which, to say the least of it, was a discourteous act. The Governor was further led to this conclusion by the recollection that, on other occasions, Sir George Grey's conduct to him has not always been marked by any great amount of consideration, especially in relation to the use of the " Hinemoa." He could not forget that since Sir George Grey has been in office, on almost every occasion (and they have not been many) on which he has aked for the use of the " Hinemoa " to convey him from one part of the colony to another, difficulties had been raised to his having her; and that last year, in Auckland, when the Governor, in pursuance of a promise which he had given two years before, wished to visit Hokianga, Sir George Grey positively refused to let him have the "Hinemoa" for three or four days to take him to that place, although at that very time she was lying at Onehunga for a fortnight doing nothing. The Governor purposely refrained from putting his suggestion that the " Hinemoa " should be permitted to take him to Melbourne into writing, because he was anxious that Ministers should be entirely unfettered in their decision, and he would have been perfectly satisfied with a verbal answer, whatever the decision arrived at by Ministers might have been; and he begs that it may now be distinctly understood that he in no way questions the wisdom or propriety of the decision arrived at by Sir George Grey. "What the Governor did complain of, and what he considers he has a perfect right to complain of