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It is not presumed that Works carried on by the General Government would absorb the whole of the labour surplu3 after providing for the Military Works, they could therefore be employed on the Public Works executed by the Provinces, the Authorities of which would doubtless willingly accept the services of the Corps, (some of whom have heretofore been employed with advantage on similar Works), and reimburse to the General Government a part of the expense of the Company proportionate to the numbers employed by them. Amongst the Works for which the Corps would be especially useful, indeed necessary, would be Defensive Works for the Ports and Harbours of the Colony which with the exception of the armaments are to be provided at the expense of the Colony. Lighthouses with their adjuncts might also be executed by them, as also General Central Penal Establishments, General Lunatic Asylums, and other Works of necessity and improvement undertaken by the General Government. Further, if a Trigonometrical Survey of the Colony should be undertaken with the aid of the "•personnel , and " materieV , at the disposal of the Secretary of State for War, which course has been already proposed and indeed lately recommended for adoption by that Official, a portion of the Company might be employed on that duty in aid of the scientific observers of the Corps who would be sent out from England with the Instruments for conducting it. It would, of course, be an understanding that the Company though paid by the Colony would be considered as an integral part of the Imperial Force, under the orders of the General, or other Officer Commanding, and their own Officers, but nevertheless, except in case of war, they would be at all times available for the service of the Colonial Government at the rates of working pay sanctioned by the Queen's Warrants, except under special circumstances of exposure, or arduous duty, such as a Survey, or employment in isolated situations, without suitable habitations. If war should unhappily break out, the Compar.y of Royal Engineers would form part of the force employed in the operations, and would necessarily be withdrawn for the time from the Civil Service of the Colony, and of course during that time would be maintained by the Imperial Government. It is considered that the above proposition, if accepted, would be beneficial both to the Colony, and Mother Country ; the former, would in time of peace obtain by so much the moral force of the number of men of which the Company would consist in addition to the Troops that would be maintained by the Mother Country, and the further benefit of a cheaper execution of their Public Works, besides a small amount of revenue from the Customs' duties on articles consumed by the men ; and the Imperial Government in case of war, would have on the spot a highly useful trained body for immediate operations, which at other times would be maintained without cost to them. The employment of the Force would not improperly affect the position of the Civilian, for labour both skilled and unskilled is comparatively scarce, and constant applications are made for the aid of Military labour, in consequence of this scarcity, which necessarily raises the rates for Civilian labour to the grievous prejudice especially of new Settlers whose expenses in locating themselves, and in their subsequent operations are excessively heavy. On the contrary the employment of these men would by so much set free a certain amount of labour towards opening up the country, rendering it more accessible, and towards assisting the struggling farmer ; besides the savings effected in the execution of Public Works performed by them, would admit of a more rapid extension of them with the limited means at the disposal of the Government. With regard to the men themselves (the Royal Engineers) if the inducement were held out to them that they would have a free discharge, if well conducted, at the expiration of eight years service in the Colony, with a small grant of land, in proportion to their rank, on their discharge, doubtless volunteers would be readily obtained, from whom a selection of good tradesmen should be made. Some of every trade, including Plumbers, would be required, the largest proportion being of course Carpenters, Bricklayers, and Masons. Some labourers classed as Miners, would be necessary, but of these there should not be a large proportion. (Signed) Thos. R. Mould, Colonel Commanding Royal Engineer, New Zealand. COPY OF A MINUTE BY MR. STAFFORD. It is requested that the Colonel Commanding Royal Engineer may further explain to the Colonial Secretary, the proposal conveyed in this communication, as many advantages to the Colony would appear likely to result from a compliance with it. (Signed) E. W. Stafford. COLONEL WYNWARD, C.8., TO GOVERNOR GORE BROWNE C.B. Auckland, 18th October, 1858. Sir,— In reference to the Minute of the Honorable the Colonial Secretary on my Letter to your Excellency of the 31st July last, No. 1778 (herewith returned) relative to the support, by the Colony, of

(No. 1910.)