A.—No. 6

To obtain constant and rapid communication between Auckland and the districts exposed to danger, and to ensure means of transport of troops, if circumstances should render their movement necessary, a steamer has been specially employed to run between Wellington, Wanganui, Taranaki, Raglan and Manukau. Another also has been engaged to do a similar service on the East Coast. Towards the end of 1862 the Government determined to place a small steamer on the Waikato and after some enquiry, the "Avon" was purchased for that purpose. Her draft of water is too great for her to be as available as is desirable j but notwithstanding this disadvantage, the vessel has been of great service. The importance of having a suitable steamer for the navigation of the Waikato, determined the Government to have such a vessel constructed in Sydney; and after many delays and much anxiety, the gunboat " Pioneer" has been obtained—a vessel, it is believed, well adapted for the purpose. But so strongly has the necessity been felt for providing means for commanding the navigation of this important artery of the country, and for preparing means of communication with the Military Settlers to be located in the Waikato Country, and of transporting their necessary supplies, that two smaller steamboats of very light draft of water have been ordered to be constructed in Sydney. These vessels are being constructed of iron. They will be brought from Sydney in sections, on board a vessel laden with coal, direct to the Waikato river, and put together at the Waikato heads. They are expected to be ready for the navigation of the river before the drought of summer has rendered it impossible to use vessels of deeper draught in the shallower parts of the river. These two boats are also specially designed of great power, so as to be used as tugs, and thus provide means of transporting supplies up the river. The sailing gunboat " Caroline " has been sold, and the " Tasmanian Maid," Steam-vessel, has been purchased for the Eastern Coast; the latter has been found of the greatest use. This vessel is now known as the Colonial Gunboat '•Sandfly."

The result is thus : the number of men enrolled for permanent service in the Northern Island up to the present date :— I. Cavalry. One Regiment, " Colonial Defence Force," of eight Troops, stationed at— Auckland, 2 Troops . . . . . . . 100 Hawke's Bay, 2 do 100 Wellington, 2 do 100 Whanganui, 2 do . . . 75 375 11. Infantry. Ist Waikato Regiment, Lieutenant-Colonel Pitt, 10 Companies ... 1 100 2nd Waikato Regiment, Lieutenant-Colonel Haultain, 10 Companies . . 1 042 3rd Waikato Regiment, Lieutenant-Colonel Lyon, (in course of formation) about .......... 477 2,619 In the Imperial Transport Service, but receiving Colonial pay . . . 142 2,761 Total 3,136 111. Artillery. One Field Battery of six 12-pounder Armstrong guns, purchased and shortly expected. Two 40-pounder Armstrong guns, now on board the " Pioneer," for use at the front. IV. Flotilla. " Avon," steamer, on the Waikato. " Pioneer," steamer, in Manukau. " Sandfly," steamer, in the Thames. Two smaller steamers now building in Sydney. Totals of the New Zealand Colonial Forces. On permanent service as above :— Infantry 2,761 Colonial Defence Force 375 3,136 Militia and Volunteers, Auckland 3,176 Do. do. Wellington # 1 ? 196 Do. do. Whanganui 552 Do. do. Taranaki 819 Do. do. Hawke's Bay . . . . . . . 750 Grand total of 9,629 Men.

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MEMORANDUM ON