8.-No. *

Note.—Preyiouß to tho date of the following correspondence several Memoranda passed between His Excellency the Governor and Ministers in connection with this subject, which will be found at pages 11 and 12 of E. No. 2. A. No. 1. Copy of a LETTER from Unoee Seceetaey foe Defence to Lieutenant-Colonel Lepper. Sic,— Colonial Defence Office, Auckland, 17th October, 1864. I am directed by the Minister for Colonial Defence to instruct you, immediately on receipt of this letter, to issue the necessary orders for relieving from duty the whole of the Taranaki Town Militia, Bush Eanging Corps, and Volunteers, including the Cavalry Volunteers under Captain Mace, and to intimate to them that their pay and allowances will be discontinued after the date on which you issue those orders. I have, Ac, Lt.-CoL Lepper, Comdg. Taranaki Militia, New Plymouth. William Seed.

No. 2. Copy of a LETTER from Lieut.-Colonel Leppee to Undek Seceetaey for Defence. Sic, —■ Militia and Volunteer Orderly Room, Taranaki, 21st October, 1864. I have tho honor to acknowledge the recoipt of your letter No. 2447, dated Auckland, 17th October, 1864, relative to the " relieving from duty the whole of the Taranaki Town Militia, Bush Ranging Corps, and Volunteers, including tho Cavalry Volunteers under Captain Mace," and to inform you, for the information of the Hon. T. Russell, Minister for Colonial Defence, that nearly all of the above mentioned forces arc employed on active service by command of Colonel Warre, C.8., commanding at this station, to whom I forwarded a copy of your letter. I have now the honor to forward a copy of his letter in reply, which only enables me to reduce the local forces by one hundred and forty-five (145) Town Militia, including two (2) officers and thirtyfour (34) Cavalry Volunteers, including two (2) officers. Awaiting further instructions, I have, Ac, W. Seed, Esq., Secretary to Minister for M. Leppee, Lt.-Col., Colonial Defence, Auckland. Commanding Local Forces. Enclosures to No. 2. Sic,— Taranaki Militia Office, 20th October, 1864. I have tho honor to forward, for your information, the enclosed copy of a *letter received this i day from the Minister of Colonial Defence, and request you will have the goodness to furnish me with instructions how to act, the forces in question being on active service and under your command. I have Ac, M. Leppee, Lt.-Col. Col. Warre, C.8., Commanding Forces, Taranaki. Commanding Local Forces, Sib,— Garrison Office, New Plymouth, 20th October, 1864. In reply to your letter of this day's date, I have the honor by desire of the Colonel Commanding to inform you that, as the Town Militia are available at any moment under martial law to perform any duties that may be required of them in the defence, or for the immediate duties, of the town, there i 3 no reason as regards this force why the orders you have received should not bo carried out at once ; but as regards the Busli Rangers, and mounted men under Major Atkinson, who are at this moment actively employed in the field, he cannot dispense with their services at present. I am, therefore, to request you will retain the Bush Rangers and so many of the mounted corps as were enrolled formerly before the addition was made to this force, pending "further instructions. I am desired by Col. AVarre to transmit copy of a letter received this morning from the Deputy Quarter-Master - General, by which you will observe that the Bush Rangers, as such, are to be employed under Major Atkinson in clearing away the timber, Ac, on the track leading from Manutahi to Mataitawa. lam further to request you will retain on pay and rations, pending further instructions, tho men belonging to tho Town Militia absolutely necessary to garrison the stockades at Omata, Bell Block, Ratanui, and Dingle's Farm. I have, Ac, Lt.-Col. Lepper, Comdg. Militia and Volunteers, E. Betjtton, Lieut., New Plymouth. Garrison Adjutant. Deputy Quarter-Master-General's Office, Head Quarters, Sik— Auckland, 18th October, 1564. Adverting to your letter No. 355 of the 13th instant, and my communication No. 1397 of yesterday's date, relative to clearing the bush on each side of the road leading through Manutahi to Mataitawa, I have the honor by direction of the Lieutenant-Genoral Commanding, to acquaint you that His Excellency the Governor has intimated his approval of the acceptance of the offer and services of Maior Atkinson, Taranaki Militia, for that service at the rate of £2 an acre, felling everything great and small, and I am to request that you will have the goodness to give directions for the work being carried out without delay, the expense being borne by the Colonial Government. I have, Ac, S. D. J. Gamble, Lt.-Col, Col. Warre, C.8., Commanding Troops, Taranaki. Dep. Qr.-Master-General.

*3e«*:^ ( No. 1

PAPERS RELATIVE TO REDUCTION OF MILITIA EXPENDITURE,