S.-No. 2.

" the expenses of all kinds of Her Majesty's troops supplied for its defence." The Colony accepted this arrangement, and ever since, it has been acted on, and is now treated by the Imperial Government as an existing arrangement. Upon the understanding that this sum of £5 per head covered all charges of every kind, the late Government entered into the arrangement since carried out for raising a large Colonial army, at a very great outlay, paid entirely out of Colonial funds. Ministers cannot, therefore, authorise the payment of Mr. Edwards' claim, nor that of McLean's assignees, from Colonial funds. The Colonial Government, however, have always admitted the liability of the Colony to pay a part of the claim preferred by Mr. Eunciman for the camp site at Drury, which has been used by the Colonial JTorces as well as Her Majesty's Imperial Forces, and Ministers are prepared to pay the Colony's share of such fair sum as may be found due to Mr. Eunciman upon examination of his account. T. Eussell. Colonial Defence Office, 22nd August, 1864. FURTHER PAPERS RELATIVE TO MILITARY OPERATIONS AND THE ESTABLISHMENT OF MILITARY POSTS. No. 1. MEMOEANDTJM by Ministers. Ministers find, on reference to the copies of the Governor's Despatches to the Secretary of State, that in a Despatch dated the 29th of July, His Excellency alludes to a letter from Sir D. Cameron, of the 2nd of July, which it would appear was written on a reference by the Governor to the General of his plans for future military operations suggested by Alinisters. Ministers are very anxious to bo informed of the General's opinion on this subject, and respectfully request that His Excellency will be pleased to permit them to peruse his letter of the 25th of June, to Sir D. Cameron, and Sir D. Cameron's letter to the Governor of the 2nd of July, part of the enclosures to the Despatch of the 29th of July, already referred to. Tours &c, F. Whitakee. 19th August, 1864. No. 2. MKMOEANDTTM by Ministers. Ministers beg to submit a few observations on the letter of His Excellency the Governor to General Cameron, dated the 28th June last, and the reply of the General, dated the 2nd July, #both transmitted with the Memoranda of Ministers of the 25th and 27th June, to Her Majesty's Secretary of State for the Colonies by the last mail. Ministers had no intention whatever, in the Memoranda referred to, of proposing any plan of operations, or confiscation, which could possibly require reinforcements of troops. Their plans, on the contrary, were based upon the calculation of a reduction, rather than an increase, of the number of forces now serving in this Colony ; and their object was to indicate what they believed to be necessary, and at the same time practicable, with the means at command, for reducing the rebels to submission, and securing the pacification of the country. 1. Matamata and Peria. —Ministers were led to believe that these places are distant only about 20 miles from our posts on the Waikato, and not in advance but on their flank ; that the road to them is open and level, and with little exception, very good the whole way, and that the troops in the vicinity were fully equal to undertaking the services required. Ministers much regret that serious obstacles, in a Military point of view, existed against the expedition they proposed, as, in their opinion, the best results politically would have followed. Indeed, after the example of Tauranga, it is not too much to aay that the submission of the rebels of the Matamata district might have been reasonably expected. 2. Tauranga.—lt has now happily become unnecessary to enter on any explanation as to this district, as the hopes Ministers expressed in their Memorandum of the 27th of June, that Colonel Greor's success would lead to a submission of the rebels, have been fully realized. 3. New Plymouth and Wanganui. —Ministers do not question that the Minute of the 13th of April, 1861, referred to by General Cameron, fairly represents the difficulties of an expedition into the country between these places; and the proposal made by Ministers was intended to obviate some of those difficulties. They did not propose a winter's campaign to carry out their plans in " a speedy and satisfactory manner," but suggested preparations which appeared to them calculated to ec«nomize both men and expense, for an expedition at a convenient season. With regard to the occupation of country, Ministers contemplated " the formation of a chain of " posts" from Eaglan or Kawhia to Tauranga, to be defended by Her Majesty's Imperial troops. "What they desired was, that military operations should be conducted with a view to the establishment of a frontier line from Eaglan or Kawhia to Tauranga, at the conclusion of hostilities, when the rebels have been reduced to submission, to be maintained thereafter by military settlers located in suitable positions; and it appeared to Ministers that such a frontier line could be satisfactorily established by 6 or 7 post*

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PAPERS RELATIVE TO NATIVE AFFAIRS.