B.—No. 4.

Enclosure 3 to No. 14. Sib,— New Plymouth, 21st October, 1864. In acknowledging the receipt of your letter, No. 13, of the 18th instant, I have the honor to transmit copy of a Garrison Order* I have issued regarding the Government buildings, timber, tools, &c, now in charge of the workmen employed under my orders by Lieutenant Ferguson of the Royal Engineers. It will take some days to measure up all the timber belonging to the General Government in town and at Qakura, and to collect the tools now in use ; but I trust the course I have adopted to meet your wishes in terminating my duties as Government Agent will meet your approval. I have, &c, H. J. Warre, The Honorable the Colonial Secretary. Colonel commanding at Taranaki.

No. 15. MEMORANDUM by Mtni3tees. Upon the Lieutenant-General's letter, of the 21st inst., Ministers respectfully submit to His Excellency that the intention of the Government to strike the Taranaki Town Militia off pay and rations was formally made known to His Excellency before the instructions were issued, in a series oi official minutes on the subject, commencing on the sth October and ending on the 12th inst., on which date Ministers offered to retain the Taranaki Militia on pay if His Excellency would defray the charges from Imperial funds as advances to the Colony. Ministers presumed His Excellency would have given the necessary information to the military authorities, as all communications on military matters are made by His Excellency and not by the Colonial Government, who have no correspondence with the Lieutenant-General or Colonel Warre. Colonel Warre is in error when he supposes the orders issued by the Government were for the "entire reduction of the civil forces" at New Plymouth; there are still on constant pay in the service of the Colonial Government at that place 932 militiamen, including officers, enrolled for active service, and who are engaged to become military settlers in that Province. At the commencement of the war at Taranaki the strength of the Taranaki Militia including officers was 611. The military settlers above mentioned have been since enrolled and introduced into New Plymouth, so that after striking off pay the town militia or ordinary settlers of the district, there remains on service a much larger civilian force than Colonel Warre had before the settlers came from Melbourne in August, 1863. The expense to the Colony of maintaining the Taranaki Town Militia was about £64,000 per annum, the cost of the military settlers now without the ordinary militia is about £87,000 per annum, so that the Colonial expenditure is far greater now than it was when the town militia only was maintained. The Colony could no longer bear the strain of the double expenditure; the Government could not cut down that connected with the military settlers who have engagements with the Government which the Government are bound to maintain, and no alternative remained but to cut down the expenditure where it was possible. Ministers see the great importance of continuing the bush cutting operations about Mataitawa, and they propose to make arrangements with the Superintendent of the Province of Taranaki (who is now in Auckland) by which the Provincial Government of New Plymouth will be enabled to employ the bushrangers in clearing the bush and in other public works. Auckland, October 26th, 1864. T. Russell.

No. 16. Copy- of a LETTER from General Cameeon to His Excellency Sir Geoeoe Geet. Sic, — Head Quarters, Auckland, 28th October, 1864. With reference to the Memorandum of Ministers of the 26th instant, in reply to my letter to your Excellency of the 24th instant, on the subject of the Taranaki Militia and Volunteers, I have the honor to state that since the arrival of the military settlers in that Province, no necessity existed for keeping the town militia and volunteers on pay and rations, which I always understood was done by the Government out of consideration for the peculiar circumstances in which they were placed; but it is very necessary that the Officer Commanding at Taranaki should have the power of calling out a portion of them for temporary service on any serious emergency; and for this reason it is desirable that they should be mustered periodically for his inspection, which would entail very little inconvenience or expense. I would also suggest the same course with regard to the Auckland Militia and Volunteers, whose services, though not wanted in the present state of affairs, may be required hereafter, if it should become necessary to assemble a largo force of regular troops for active service in any other part of the Island, four regiments, besides the Waikato Militia, being absorbed in the mere occupation of territory taken from the rebel natives in this Province alone. I have, &c, His Excellency Sir George Grey, K.C.B. D. A. Cameron, Lieut.-General.

No. 17. Copy of a LETTER from Under Secretary for Defence to Lieut.-Colonel Lepper. Sib, — Colonial Defence Office, Auckland, sth November, 1864. Referring to my letters to you, on the subject of the Taranaki Town Militia being relieved from duty, I am now directed by the Minister for Colonial Defence to inform you it is the desire of the Government that the Taranaki Town Militia should be mustered for inspection of arms once a month; and lam to request yo% to take the necessary steps for having this done. Lieut.-Colonel Lepper, New Plymouth. I have, &c. William Seed. * Similar to that enclosed in a letter to Assistant Military Secretary of this date.

*Bet ante.

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PAPEES RELATIVE TO THE