A.—No. 1

4

MEMORANDA BETWEEN HIS EXCELLENCY

Colony. But the result will be, to impose a burthen on the Colony which it will be difficult to bear and which may, it is feared, seriously check its progress. Ministers have had under their consideration the expressed intention of the Imperial Gruiemmcnt to insist on immediate repayment of all advances to the Colony on account of the war, to withhold from it all ful ure pecuniary aid, and to require for the future a rate of payment per man upon a greatly increased rate for all Her Majesty's land forces employed in the Colony. As regards the withdrawal of the troops at the earliest possible period, Ministers have expressed their views in a separate Memorandum. Ministers have also, in a Minute dated yesterday—a copy of which His Excellency is respectfully requested to transmit to the Home Government—conveyed to the Governor their views in reference to the operations between Taranaki and Wanganui. They are aware that they can exercise no control over the military details of these operations. If from any cause the withdrawal of Her Majesty's land forces should be delayed for any lengthened period, and the terms now imposed by the Imperial Government should be insisted on, Ministers are of opinion that the Colony will be wholly unable to bear the burthen, and that financial ruin will be the result. Ministers respectfully submit the following equitable grounds on which they claim the favorable consideration of the Imperial Government: — New Zealand is a very young Colony, placed in a position of unexampled difficulty. It owes its foundation to the Imperial Government, and therefore, it would seem, may not unreasonably look to it for help in time of need like the present. This claim the Government has hitherto recognized in a spirit of liberality for which the Colony is duly grateful. But in whatever light the circumstances of the present war be regarded, it is indisputable that the war, whether in its commencement at Taranaki in 18G0 under Colonel Browne, or in its revival in the Waikato in 1863 under Sir George Grey, has resulted, to some extent at least, from the action of the Governor as an Imperial Officer at a time when the absolute control of Native affairs was in his hands independently of Responsible Ministers. These operations have been throughout, up to the present time approved of and encouraged by the Imperial Government itself. Ministers do not think that, under these circumstances, the Imperial Government can justly throw off its share of the responsibilities for the direct consequences of the war. It is true that these operations were approved of or recommended by Responsible Ministers, and adopted by the General Assembly ; but the Colonists have borne their share of the burthen and perils of the war. A large portion of the population has been for a long time withdrawn from its ordinary pursuits, and employed in active service. Active operations are indeed suspended ; but between Taranaki and Wangauui measures are in progress which will involve the Colony in heavy cost. Ministers find themselves called on to grapple with difficulties on all sides, with an absolutely exhausted Treasury, the Government being only able to command the funds needed for pressing exigencies by borrowing temporarily at high rates of interest. The Colony has incurred a debt of nearly three millions.- It is maintaining on full Colonial pay a force of 4500 men, besides militia and volunteers. Under these circumstances, Ministers do not think it will bo consistent with the spirit of liberality and justice in which the Imperial Government has hitherto acted towards the Colony to exact from it conditions which, particularly in case of any lengthened detention of the troops, will involve it in financial ruin. Subject to these remarks, Ministers will be prepared to give effect to the Resolutions of the House of Representatives, by entering at once upon the accounts of the war expenditure with the Imperial Government, and making provision for repayment. H. Sewell. 3rd January, 1865.

No. 4. MEMORANDUM by the Governor. The Governor begs to acquaint his Responsible Advisers that Sir D. Cameron has written to him recommending that the Governor should repair to Wanganui as soon as possible, and that some Minister should be there at the same time, in order that the Governor being fully acquainted with the state of affairs there, it might be determined whether the instructions he has issued to Sir D. Cameron can be carried out consistently with the safety of the settlement of Wangaaui, or whether they are to be carried out at any risk. In compliance with the wishes of Sir D. Cameron, the Governor purposes to embark in H.M.S. " Esk" on Saturday next, for the purpose of proceeding to Wangauui; he will probably bo able to call at Wellington on his way to Wanganui. 16th February, 1865. G. Geet.

No. 5. MEMOEANDUM by the Goteexoe. The Governor begs to state for the information of his Eesponsible Advisers, that Sir D. Cameron has informed him that in consequence of the critical state of the Wanganui settlement, he has had to send reinforcements for its protection, and that he fears he will be obliged to send additional forces for the same object, which will put a stop to his operations. Sir D. Cameron therefore recommended that the detachment of the- 68th Kegiment at Auckland should be sent to Wanganui as soon as possible, and that not a moment should be lost in organising the two troops of the Colonial Defence Force, as promised by the Minister for Colonial Defence, as they will be extremely useful. In pursuance of this application, the Governor has ordered the detachment of the 68th Eegiment,