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[military.] (No. 82.) Downing-street. 21st October, 1856. Sir, — With reference to your despatch No. 28, of the 15th of April last, I have to inform you that Lord Panmure has acquiesced in the opinion which I expressed to him that the contribution from Colonial funds in aid of the expense of Military Protection to be afforded to New Zealand, should for the present, be limited to all charges on account of the maintenance and repair of existing Barracks, and for constructing such further Barracks as may be required ; but I have to add, that unless you shall soon be able to report that these conditions have been carried into effect, Her Majesty's Government will feel it necessary to issue peremptory orders for the withdrawal of the Troops from those districts in which adequate provision for their accommodation has not been made. I have &c, (Signed) H. Labotjchere. Governor Gore Browne. &c, &c.

21.s< October, 1856. 27th T>rremher, 1856.

MEMORANDUM BY MR. STAFFORD. May 6th, 1857. 1. The Responsible Advisers of the Crown in New Zealand, have had under their consideration the Despatches from the Secretary of State in which your Excellency is informed that Lord ', Panmure has acquiesced in the opinion expressed by Mr. Labouchere, that the contribution from Colonial Funds, in aid of the expense of Military Protection to be afforded to New Zealand, ' should, for the present, be limited to all charges, on account of the maintenance and repair of existing Barracks, and for constructing such further Barracks as may be required ; and adding that, unless your Excellency shall soon be able to report that these conditions have been carried into effect, Her Majesty's Government will feel it necessary to issue peremptory orders for the withdrawal of the Troops from those districts in which adequate provision for their accommodation has not been made ; and that Her Majesty's Government have decided that this arrangement should take effect from the date of the arrival in the Colony of the first mentioned despatch. 2. Your Excellency's advisers do not propose to controvert the general principle that Colonies should contribute towards the expense of their own military protection ; nor to enter into the question as to what share of the expense the mother country and a Colony should relatively bear ; but it is desired that the attention of the Home Authorities should be directed to the peculiar circumstances in which this Colony is placed ; and its consequent inability, at the present moment, to bear any additional chargps beyond those to which it is already subject. 3. The position of New Zealand is essentially different from that of the neighbouring Colonies of Australia, and indeed from that of by far the greater portion of the British Possessions. In addition to the Colonists there is a large Aboriginal Population, more numerous, taking the whole Colony, than the Colonists themselves ; and in the two Northern Provinces, (those of Auckland and' N*»w Plymouth,) out-numbering the European population in the proportion of nearly 4 to 1. In the Southern Island, where the Native Population does not exceed from 2000 to 3000, there is not a single British Soldier stationed. It is principally therefore, if not altogether, the Native population which renders essential the maintenance of a British force in the Colony ; and certainly of a force anything like the strength of that now stationed here. 4. The liberal assistance which the mother country has hitherto afforded to the Colony has been of the highest importance to its welfare and advancement. For upwards of ten years peace has been preserved ; and the result has been a steady progress which could not otherwise have been attained. The war which unhappily broke out in the year 1845, was in consequence of the want of a physical force iii the country sufficiently imposing to command respect ; and the inevitable result of the withdrawal of the Troops, or even of an undue reduction of their strength, would be, sooner or-later, to bring about a struggles between the European and Native races. It is not that there is any ill-feeing, for the very reverse is the fact ; the best feeling exists between the Natives and the Colonists ; but disputes will constantly arise, frequently of the most trivial nature in their commencement, which would speedily