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No. 7. The Premier to His Excellency the Governor. Memorandum for Sis Excellency. Sic George Gret presents his respectful compliments to the Marquis of Normanby. 2. Sir George Grey regrets that the Governor should have fallen into a mistake. He will find, on a reference to the correspondence, that what Sir George Grey said was, that he had " good reason to hesitate and ponder in coming to a decision in favour of the ' Hinemoa' being sent out of the colony for the purpose of proceeding to Melbourne and Sydney, whilst such a feeling of apprehension as is disclosed in this communication existed in the minds of a portion of the European population." Sir George Grey never alluded to the state of feeling existing among the Natives. Ministers had already fully informed the Governor upon that subject, and if they had believed that any change had arisen, further information would have been given to him regarding it. , 3. Any man, however, accustomed to deal with two races inhabiting the same country, must know, when a portion of one of those races becomes greatly alarmed regarding the other race, that from any sudden cause serious and disastrous events may unexpectedly take place. Indeed, such alarms, although without foundation, are not unfrequently the cause of the realization of the very events they appear to have predicted, and, whether they are founded in reason or arise from foolish or mischievous false rumours, they must enter into the calculations of a Government which is providing for the public safety. 4. It was to show that such alarm did exist, and had for some time existed, in the minds of a portion of the European population, that Sir George Grey, on the 28th instant, enclosed the memorandum from Colonel Whitmore, but he had no intention of implying the accuracy of the information given to Mr. Moorhouse, and indulged the belief that the Governor, relying on what Ministers had told him, would know how inaccurate that information must be. 5. The Governor is pleased to say that he believes that Sir George Grey has purposely withheld most important information from him. It is to be regretted he should have stated this. On his part, Sir George Grey has only to say, that the Native Minister gave the Governor the fullest and most accurate information regarding the state of the Natives, and that he will continue to do so. Wellington, 31st January, 1879. G. Gret.

No. 8. His Excellency the Governor to tbe Premier. Memorandum for the Hon. Sir George Grey. The Governor presents his compliments to Sir George Grey; and in reply to his memorandum of the 31st of January, he can only express his satisfaction that Sir George Grey is able to assure him that in forwarding the memorandum which was signed by Colonel Whitmore, he had no intention of implying the accuracy of the information given to Mr. Moorhouse, which, if correct, would certainly have been of a character to create uneasiness. Sir George Grey, no doubt, did add the words "whilst such a feeling of apprehension as is disclosed in this communication existed in the minds of a portion of the European population;" but Sir George Grey at the same time stated that the report was furnished by a member of the House of Representatives, which was of course calculated to give weight to the communication, and he in no way intimated that he had reason to believe that the report was either exaggerated or unfounded. The Governor certainly never for a moment believed that Sir George Grey would have forwarded to him, in an official form, such a communication (without distinctly expressing his disbelief in the report) simply for the purpose of showing that alarm, which he knew to be unfounded, existed in the minds of some people on account of the state of feeling among the Natives on the West Coast, a fact the Governor had already learned by reading the local journals. Sir George Grey is pleased to state that the Native Minister gave the Governor the fullest and most accurate information regarding the state of the Natives. The Governor can only say that Sir George Grey's idea of full and accurate information must differ very materially from what he understands by those terms. The Governor has not seen the Native Minister more than four or five times in the last three or four months, and he has received no written communication from him. It is perfectly true that, just before proceeding to Auckland, the Native Minister called on him, and in the course of a very short conversation he assured him that Native matters were progressing in a most satisfactory manner. It is also true that within a few days the Colonial Secretary informed him that the Government were taking steps to strengthen the police force on the West Coast, in consequence of an uneasy feeling exhibited by the Natives in that district; and, subsequently, on four or five occasions, casual conversations have taken place between Ministers and the Governor upon the subject, generally in reply to some question put by him. Not a single letter, report, or official document of any kind, relating to the state of Native affairs on the West Coast, has, however, been forwarded for his perusal; and he therefore considers that he is perfectly justified in stating that information which should have been furnished has been purposely withheld from him. Government House, Wellington, Ist February, 1879. Normanby.