D.-No. 5.

Enclosure to No. 64. Captain Galtox to the TJndeb Secretary of State, Colonial Office. ■ * Sib,— War Office, 14th July, 1864. . ,' I am directed by Earl dc Grey and Eipon, to acquaint you for the information of the Secretary of State for the Colonies, that the present system of supplying Stores to the Colonial Governments on repayment, is very unsatisfactory, and tends to derange the accounts of this Office, with reference to the Votes sanctioned by Parliament. To avoid this Lord de Grey has decided, that the following arrangements shall for the future be adopted, with respect to all Stores required from this Department on repayment, viz.: Except under very peculiar circumstances, and in the case of Home and Colonial Militia or Volunteers, all Governments or persons for whom the "War Department ■ undertakes the manufacture of Stores, should advance the money required, or estimated to be required, for the labor and materials to be expended. ...... That a separate account be opened in respect of each such service, and that work be not executed without an available balance be advanced to meet it. That in all cases where, this department undertakes to view Stores received from Contract, for other Governments or Departments, all expenses entailed by such viewing will be charged against such ■ Government or Department, and payment will be required on account, inasmuch as for such unforseen services Parliament hast not allotted auy money lo tiiLs Department. I have, &c, The Under Secretary of State for the Colonies. Douglas Galtox. ■ No. 65. Sib, — • Downing Street, 11th August, 1864. At the instance ot the Lords of the Committee of Privy Council for Trade, I forward herewith Copies of the Quarterly Supplement to the Merchantile Navy last for ISGI, for the use of Registrars of Shipping and Officers of Customs in the Colony under your Government. I have, &c, Governor Sir George Grey, X.C.8., &c, &c, &c. Edwabd Cabdwelt,. No. 66. No. 98. Sib, — Downing Street, 26th September, 1864. I have to acknowledge the receipt of your Despatches of the dates and numbers noted in the margin. ; The defeat of the natives near Tauranga on the 21st June last, by the Forces under the command of Colonel Greer, reflects great credit on that officer, and on the detachments of the 43rd and 68th Eegiments, and on the local forces who were engaged. Nor can I omit to notice the tribute which Colonel Greer pays to the chivalry of the natives. The general conduct of the natives in the actions near Tauranga has been widely different from that of the natives in another part of the Island, which we had occasion recently to notice with so much regret. I cordially enter into your feeling that it isimpossible to avoid longing that an end may be put to such distressing events. Toil will inform Mr. Graham that 1 have received his letter of the 18th June, forwarded in your Despatch, No. 100, commenting on the Memorandum of your Advisers, in answer to the letter addressed to you by Lord Chichester and other members of the Aborigines' Protection Society in ■ England. Mr. Graham ptrts forward the views he entertains in favour of the natives in a manner which is creditable to his feelings; and I readily acknowledge the advantage which it is to the cause of good Government in New Zealand, that men of his position in the Colony should be ready to give weight to all considerations which tell in favour of the native race. At the same time, it is right and necessary to remember that the origin of the present war, as it has been described by yourself, was the murder of two officers and nine soldiers, who were most shockingly assassinated by the order of some of the Upper Waikato Chiefs; and with reference to the contemplated attack upon Auckland, you also reported that " Just after these murders, plots were formed by the same people, and their " adherents in the lower Waikato, for an attack upon the Settlement of Auckland. That the natives " who formed these plots were all well armed, and had long been ijreparing themselves for such enter- " prises ; that they had drilled their men, dressed them in uniforms, appointed them to different ranks." And further, that" when General Cameron moved early in July, to provide for the protection of the " Auckland settlement, the Native attacking forces were already in motion; and that when he crossed " the Maungatawhiri, their leading parties had already passed up the Maramarua to occupy Paparata, or " some point on the line which they intended to take up," "While it is very right to do justice to the Natives, and to moderate those feelings against them which a state of warfare is too well calculated to produce, it is at the same time necessary to be just to our own cause, and not to overlook the injuries which have been inflicted on the Queen's subjects of European origin, and the dangers to which they have been exposed by unprovoked aggression. I much regret to find from your despatches of the 6th Juno and 7th July, that the difference of opinion between yourself and your Advisers, as to the disposal of the Maori prisoners, confined on board the hulk " Marion" had not been brought to any satisfactory conclusion. The despatches I have already addressed to you on the subject will have sufficiently expressed the determination of the Home Government not to sustain the war with the blood and treasure of England, if it shall be protracted by measures taken in defiance of the judgement of the Governor; and the receipt of those despatches will no doubt have enabled you to deal with these prisoners in such a manner a3 you shall have thought consistent with justice and sound policy.

Separate, 6 Jn. 64. „ 8 „ No. 90, 9 „ 91, 9 „ 92, 9 „ 93, 9 „ 95, 15 „ 96, 21 „ 99, 1 Jul „ 100, 7 „ 101, „ „

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DESPATCHES FROM THE RIGHT HON. E. CARDWELL, M.P.