A.—No. 1 SECTION 11.

This is obviously incorrect. The proper course would have been to omit this Clause, leaving Her Majesty's Government to perform in their own way the pledge given in my Despatch No. 53, of the 26th of May, which might have been recited in the preamble. I think, therefore, that this (the 5th) Clause of the Act ought to be repealed. The Colonial Defence Act is one the object of which I cordially approve, but I think that the effect of one of its provisions has not been fully observed. The expense of maintaining the force to be organised under this Act is to be paid from one of several sources, among which is enumerated " any funds available generally for Native purposes not specifically appropriated." It is, of course, quite competent to the Legislature to enable the Colonial Government to appropriate to the support of this defensive force any sum of money voted by them for Native purposes above the £26,000, which is to be expended in the support of Native Institutions, and for other purely Native objects, as a condition of receiving a remission from the Colonial Military Contribution. But the provisions of the Local Act taken in connection with the 5th Clause of the Native Appropriation Act, would render applicable to the building of Barracks and defence of the Colonists £20,000 or more of the payment which was relinquished by the Imperial Treasury, not for purposes of defence, but in order that it might be employed in removing the causes and occasions of war by ameliorating the condition of the Maoris. I am sure this was not the intention of the Legislature. But in order to prevent misconception, I think it necessary to remind you that the sums spent in furnishing Barracks and pay for this new force must not be reckoned as part of the £26,000 applied from the Colonial Treasury to Native purposes, or in satisfaction of the Military contribution payable under the 4th Clause of the Native Appropriation Act. I have, &c, Newcastle. Governor Sir George Grey, K.C.B.

No. 34.

No. 8. copy of DESPATCH fbom his grace the duke of Newcastle, k.g., to governor sir george GREY, K.C.B. [Received at Taranaki 26th May, 1863.] Downing-street, 24th March, 1863. Sir,— I have received your Despatch, No. 113, of the 5th November, 1862, transmitting a Minute, _ signed by Mr. Dillon Bell on behalf of your Responsible Advisers, and other documents relating to the Native Lands Bill, which was reserved for the signification of Her Majesty's pleasure, and transmitted with the other Acts of the Session, in youv Despatch No. III., of the 31st of October. I perceive from Mr. Dillon Bell's Minute, which is extremely full and clear, that the Bill is not one which you would yourself have proposed ; and that the main ground upon which your Advisers declined to adopt your views was that there was no chance of their being accepted by the General Assembly. It is plain, therefore, that whatever may be the language held by that body in resolutions and other manifestoes of an inoperative character, they have not any real intention of allowing the Home Government, through you, to dictate their course in respect of this, one of the most important branches of Native policy. With this observation I proceed to add that I see no reason why Her Majesty should refuse her assent to a Bill which has been passed under such circumstances, and which in your opinion can be so worked as to produce beneficial results at this crisis. It appears to me, as far as I can judge, honestly and carefully framed, and I see no reason to doubt that the defects alleged by Mr. Sewell, may and will be removed by subsequent legislation, as experience shall shew the best mode of dealing with them. I have therefore advised that the Bill should receive Her Majesty's assent, and I enclose the Order in Council by which that assent is conveyed. I have, &c, His ExceUency Sir G. Grey, K.C.B.

Printed at p. 7 ante,

Enclosure.

Not printed.

No. 9. copy or DESPATCH fbom governor sie george geey, k.c.b., to his grace the duke of NEWCASTLE, K.G. Downing-street, 17th April, 1863. Sir,— I have to acknowledge the receipt of your Despatch, No. 134, of the 31st December, forwarding in conformity with a request to that effect, which was made to you by the Legislative Council, a case

No. 42.

Printed at p. 14 ante.

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PAPEES EELATING TO