opposition of Taonui and some of his party. We have been quiet here since the Puketapu affair. The natives have given over work. The survey operations are suspended, and we have no idea when they are likely to resume. There are unpleasant rumours, as you may imagine constantly; and it is difficult to say that even our neutral policy can keep us clear. Even the natives say that we will be drawn into the quarrel. The Moturoa, Waiwakaiho, and Hua natives, may be found quietly making cartridges, and preparing for a day which they say will come. When the steamer returned from Auckland the natives were most anxious to know if the troops were on board; as they quite anticipated that the Government will send some, now that blood has been spilt. It is difficult to give a correct opinion on this matter. At the same time, I firmly believe if troops are not sent here, (not for the purpose of taking Katatori, or in any way to interfere with the quarrel, as it stands at present, but to act as a check on the future), that the British law in Taranaki will fall for ever in the eyes of the natives; and one of the immediate consequences may be that some of our Friendly natives may turn round upon us, and be our worst enemies; --- especially the Hua people who are, in fact, Puketapus. Who knows Puketapu, they don't know each other. Rawiri was cautious. He said they will never fire at us; we are all relations. Notwithstanding the apparent gloom that hangs over us just now, the people have been seized with a kind of mania for bush land; and I may say nearly the whole of the land in the Grey and Omata Blocks is sold, without its being surveyed. There is some months' work to survey the land already purchased. Halse gave out the Hua land on the 17th. Only about 450 acres was taken up by original landowners. Those who have selected, are well pleased, because the land has risen to £5 and £6 an acre. About 350 acres now will be taken up by Scrip, which will satisfy some of the growls. I have commenced the Mokau and Kawhia plans; which will be forwarded to you before long, if I am not sent out to the Hua again.