E.—No. 2.

are not contemplated, and in any case will be only carried on against open rebels." The assurance contained in my letters and the intelligence that an indiscriminate seizure and destruction of property had taken place here, would be so much at variance that I could hardly expect any statement I might make in future to be received as worthy of confidence. As the mail leaves in the morning, I am anxious not to miss the opportunity of bringing this matter under notice and of suggesting the desirability of modifying the instructions given to Colonel Carey. I have to report that the news of the arrival of the expedition at Tauranga appears to have caused much satisfaction at Maketu where there are now many of the Arawa chiefs from inland. The Natives here, also those living on the East side of the Harbour, express themselves satisfied with the result of their interview with Colonel Carey. I have the honor to be Sir, The Honourable Your most obedient servant, The Colonial Secretary. Titomas H. Smith. (Native Department.) C. C. Enclosure. COPT of Letter from Mr. T. H. Smith to Colonel Caeey. Te Papa, Tauranga, 22nd January, 1864. Sir,— Referring to the subject of our conversation to-day, I take the liberty of repeating in an official communication the opinion I then expressed as to the probable result of treating all Natives residing on the "Western side of Tauranga Harbour as rebels, and proceeding to take their cattle and destroj their crops. „ ,~ I am satisfied that any such indiscriminate seizure and destruction of property would inflict injury upon many innocent persons, and that its effect would be to increase the number of the disaffected, ta precipitate hostilities here, and to induce other tribes to take up arms who might otherwise remain quiet. ! r lam of opinion that the occupation of Tauranga by Her Majesty's Forces will have a salutary effect upon the resident Natives, and upon the tribes living on the Coast between this and the East Cape, who may thus be deterred from attempting to reinforce the insurgents at Waikato if it is understood that a force has been stationed here for the purpose of intercepting armed parties proceeding by this route. Should, however, a collision occur here arising out of any act which would be regarded as an aggression upon persons who are not and have not been in arms against the Government, it is probable that many tribes now professing neutrality would rise and make common cause against the Government. Though true that the majority of the Natives on the Western side of Tauranga sympathise with "Waikato, and that many of them have joined the insurgents, yet there are very many individuals and more than one considerable section of a tribe who have not committed themselves —To attempt to ascertain correctly what property belonged to rebels, and what to persons not implicated in the rebellion would be useless. Information obtained from the natives themselves would not be trustworthy, and it could not be obtained from any other source. If the object of the Government be to minimize the number of the insurgents at the present seat of war without creating another if it can be avoided, I believe that this object is most likely to be attained by abstaining from offensive operations here at least, while the resident Natives refrain from any hostile demonstration. I have, &c, T. H. Smith, Civil Commissioner, Bay of Plenty. Colonel Carey Officer Commanding Her Majesty's Forces &c. &c. Ac. Tauranga. No. 6. MINUTES by Mr. Fox, and Mr. Whitakee with Statements by John Fatilknee and Daniel Sellibs j as to disposition of Tauranga Natives. Mr. T. H. Smith, Civil Commissioner, Bay of Plenty, told me about a fortnight ago, in the presence of Mr. Whitaker, that all the Natives of that district north of Tauranga, might be considered as King natives, —that they are in fact Win. Thompson's people, —and more or less implicated in this war. Ttat most of them to the south of Tauranga have hitherto been loyal and kept out of the war. Mr. Edward Clarke, a settler at Tauranga is assured that Eawiti, a leading chief of the Southern Natives, is now about to join the rebels with his people. He has openly said he would, and was lately met by Mr. Clarke with some of the leading Kingites, and seemed ashamed of being found in their company.- The Mayor's Island or Flat Island Natives have gone to the war. W. Thompson has lately had emissaries in the Bay of Plenty, stirring up the Natives there to join him with reinforcements. Archdeacon Brown does not think he will get much support, except from those who have been in Waikato already, and the Mayor's and Flat Islanders, who now join for the first time. William Fox.

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PAPERS RELATIVE TO NATIVE AFFAIRS.