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wards to occupy the country westward of the Tauranga Range. The 4th Regiment to be located on the Waikato River, between Pukerimu and Kikiriroa. Each Settlement to have a stockade capable of holding from two to three hundred men. If the Lieutenant-General thinks it advisable, in the event of continued hostilities with the Natives, to have stockades between the large village sites, to be held by small bodies of men who may be detached from the large villages, stockades can be erected; but upon this point and on others connected with this question, (including any necessary modification of their proposal,) Ministers desire to have the opinion of the Lieutenant-General. T. Russell. Colonial Defence Office, Auckland, 6th June, 1564. COPT of a Letter from Governor Sir George G-key, X.C.8., to Lieut.-General Sir D. Cameeox, K.C.B. Government House, Auckland, 9th June, 1861. Sir,— I have the honour to acknowledge the receipt of your letter of the 2nd instant, in which you raise certain questions regarding the establishment of military settlements in the "Waikato country. In reply thereto I beg to submit the following remarks :— The plan herewith enclosed will show you the points at which the Government are anxious that the proposed military villages should be established. It is proposed that at each village from 300 to 500 men should be located, and that at each settlement a stockade or stockades should be constructed capable of containing the whole number of men. It is proposed that in as far as possible the several settlements should be established on points which arc likely hereafter to become the sites of important country towns, and that each man should at once have assigned to him his village acre ; but no country land will be for the present allotted to the men. It is proposed that the settlements Nos. 1 and 2 on the enclosed plan should be occupied by the 2nd "Waikato Regiment. That settlements Nos. 3 and 4 should be occupied by the 3rd Waikato Regiment. That settlement No. 5 should be occupied by a portion of the Ist "Waikato Regiment; and that the 4th Waikato Regiment should be located on the Waikato river, between Pukerimu and Kiri-kiri-roa. If in the event of continued hostilities you should think it necessary to have stockades placed between the large village sites, to be held by small bodies of men from the Waikato Regiments, the Government will erect such stockades ; and upon this and all similar points' the Government will be glad at all times, in as far as practicable, to carry out your wishes. I have, &c, G. Grey. The Hon. Lieut.-General Sir D. A. Cameron, K.C.B. &c., &c, &c. COPT of a Letter from Colonial Defence Minister to Col. Hault.ux, 2nd Waikato Regiment. Colonial Defence Office, Auckland, 10th June, 1864. Sin,— I am directed by the Minister for Colonial Defence to inform you that the Government intend immediately to locate a large nilmber, and as soon as convenient, the whole of the military settlers upon the village sites intended for them ; that they will be located in villages of from three hundred to five hundred men ; that the sites are to be selected in the localities shewn in the sketch enclosed, and tbat Mr. Russell requests that you will, on behalf of the Government, confer with the Lieut.-General, and iix the precise spots for the several village sites, having regard to the objects in view, viz.—A military settlement, on g.ood land, and in a good natural position. The village sites on the Waipa, and those on the Horotiu, rivers, are to be selected on the most eligible and convenient places, at the head of the navigable part of those rivers, so that the residents may have their supplies taken up by steamers. The object of the Government in selecting the sites at the head of the river navigation being to encourage the speedy growth of settlements at poiuts where, from their natural positions, it is certain towns must eventually spring up, where travellers to the interior of the country would leave the steamers and where the produce of the Tipper Waikato districts would he shipped. In selecting the sites on the Waipa river regard should be had to the point where the Kiwiroa Road is likely to reach the river. Captain. Cadell, the Superintendent of the River Transport, lias been instructed, in connection with this subject, to give his assistance and advice as to the points where the rivers cease to be navigable for steamers. I have the honor to be, Sir, &c, &c. William BtXS. COPT of a Letter from Lieut.-Gcieral Sir D. Camehon, X.C.8.. to Governor Sir George Gkey, K.C.B Head Quarters, Auckland, # 25th June, 1864. b'lß,— With reference lo former correspondence on tho subject of the military settlements about to be established on the frontier between tie Waipa and Horotiu, I have the honor to report for your

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PAPERS RELATIVE TO NATIVE AEFAIRS.