D.—No. 5.

1 presume there is little likelihood of Alessrs. Godeffroy having abandoned this system, or being unwilling to send out Emigrants under that system, as Air. Petschler, of Auckland, was, at the time you left, agent for the firm for that purpose. If. however, they should have done so when you arrive, of course you would try if some other firm would not send them out on the credit system. My instructions are that you employ Messrs. Godeffroy if they are the only firm sending out Emigrants on credit; if neither Alessrs. Godeffroy send out on credit, nor any one else, you must stop all proceedings until you receive further instructions. If a small part only of the passage money be required to be paid at once, this could be paid; but of course not a considerable part, say, in no case exceeding 10 per cent of it. But the present state of the colony, I fear, makes it unnecessary for me really to answer your questions. 1 have done so, in order that, if matters improve, and the German Immigration should go on as intended, you may know how to act. The Governor took possession of the Tataraimaka Block (of which you know the history) on the 4th April last. A detachment of 200 men were placed on the block, and built a redoubt there. The natives South, who had disputed our possession of this block, gave no evidences of intending to dispute our resumption of it for about three weeks. At that time some ambuscades were reported to have been laid along the road ; but nothing came of this. ()n the 4th of May, however, the Commissariat carts under escort, were attacked by an ambuscade, and Dr. Hope and Lieut. Tragett, of the 57th Regiment, two non-commissioned officers, and four men were shot and tomahawked savagely. This is supposed to have been done by the Taranaki natives, some of whom had entrenched themselves on the ridge of a hill between the Omata and Tataraimaka blocks. Reports are rife of bodies of natives coming up from the South, and others down from the North to attack the troops at Tataraimaka or Waitara. There are combinations of natives throughout the island to make it a. general war, but I think these will not succeed. The Taranaki settlers have come in from the country districts. Under these circumstances you had better suspend all proceedings until you receive further instructions from me. You could go on collecting names of proper Emigrants, without taking them from, or breaking up their present vocations and ways of getting their living; just so, that you might know where to find them, and to get them ready with as little delay as possible, should the circumstances of the province improve so as to allow our scheme to go on. I regret all this very much. A site for their village has been chosen, a horse track cut through the bush to it. I have visited it myself, and had just given orders to have about 500 acres ready cleared, and other preparations made. This is at present all at a stand still. I have, &c, Alfred Domett. F. Kelling, Esq.

No. 20. MR. KELLLNG TO THE HONORABLE THE COLONIAL SECRETARY. Hamburgh, 30th July, 1863. Sib, — I have the honor to acknowledge the receipt of your letter dated New Plymouth, May the 9th, 1863, in answer to a letter of mine from Point de Galle, of March the 17th. Since that time you will have received my communication from here, which I sent with the April mail, and of which 1 did not send a copy, as it is more than likely that it will have come to hand. You will have seen by that letter that I have already stopped all proceedings here, but out of other reasons, as you now instruct me why to do so. I regret very much that disturbances have again taken place in Taranaki. which might and certainly will interfere with the expedition of German emigrants. It is published already in many of the local papers here, that war has broken out with the Natives of New Zealand, which had the effect, that two families who intended to emigrate to Nelson have since given up this their intention. I shall wait until I receive further instructions, which I should have done, under all circumstances, till I had received an answer to my letter above referred to, which I expect to receive in September next. Messrs. Godeffroy and Son are also of opinion, that the altered state of the country in Taranaki will injuriously interfere with the collection of men. Should, however, the emigration go on, we can get men who have served as soldiers, although we cannot contract with them here to serve as such. How long I shall stay here in Germany will in a great measure depend upon the instructions which I expect to receive from your Government. It is very likely that I shall be here till the end of the year, so that even should our emigration scheme come to nothing for the present, I could receive an answer to this letter with return of mail, which I should get in December. I have, &c, F. Kelling. The Honorable the Colonial Secretary, Auckland.

15

INTRODUCTION OF GERMAN IMMIGRANTS.