E—No. 9 Sec. VIII.

It will be in the recollection of the Government that I h;td previously fixed upon Potangotango a3 my residence, but it was thought Oruanui would be better adapted for that purpose The people of that tribe (a branch of the Ngatiraukawa), incited by jealousy at my change of residence, spread a variety of false reports, the principal of which was that I had induced the Oruanui Natives to dispose of a portion of their land to the Queen for a money payment. They took good care that t^e report should be extensively circulated, and among others »pplied to Rewi, to place an interdict upon my proceedings and request the Oruanui Natives to send me back again. Rewi very properly replied that he could not interfere, and that they had better write of themselves, that he did not believe that I had paid money for the land, and wound up by reminding them there were Magistrates in Waikato; however if money had been paid for the land, then he might interfere. Foiled in that quarter, they be-toolc themselves to Ngatiterangita, the tribe inhabiting the South-east side of Taupo, and who had just returned from road-making at Ahuriri with their pockets well lined with the detested money of the pakeha; here they were more successful, and on the loth of April instant, sixteen men of that tribe arrived at T&puwaiharuru (the village of Te Poihipi) to demand an explanation, at the same time threatening to burn my house. At first the meeting was a very stormy one, neither party adhering strictly to the matter at issue, but incorporating by degrees a great deal of extraneous matter in the shape of old grievances, and at one time 1 am given to understand that a pacific solution seemed most unlikely to take place. However, as dinner time approached both parties cooled down a little, and the gift of land having- been explained, they expiessed themselves satisfied, and returned to Motutere next morning. Their " mutunga" was " we do not object to your Kai-whakawa or to his tikanga so much, our only fear is that he may introduce land purchase—if such is not the case, arid we see good arise from his work, we will be with you." '1 he Natives of Pototira came as far as Motutere and went back again. I cannot say whether Te Heu lieu had anything to do with it or not, I rather think not; but as I intend going to these people this week and giving them an opportunity of asking me any questions as to our inttntions, and also of explaining matters to them, I shall be able to give more definite information by next mail. Ihus the matter rests I have stated everything as it happened, withaut exaggeration or concealment. There was no doubt a great deal of bad feeling shewn, and our friends were so irritated at being thus interfered with upon their own ground, and at the manner in which the whole affair was conducted, that their line of argument did not tend to allay that feeling; as they threatened reprisals and said that if anything was done to my house JMr. Grace should suffer in like manner. I protested against this on my arrival, and told my Natives that they had erred in mixing Mr. Grace's name with this matter, as he had nothing to do with it, and that it could only cause bad feeling and be productive of serious injury to the cause which we have at heart. They promised to be more careful in future, and said that as I was not present I could not be made responsible for anything that was said. I do not regret that this affair lias happened. It has been the means of trying what sort of material our Natives are composed of; and I am happy to say that they have stood the trial well. They have committed themselves thoroughly, there can be no going back now, and there is an amount of enthusiasm existing amongst them which I take care to take advantage of. Thursday (1st May) is the day fixed upon for the selection of Magistrates, after which I proceed to Te W'haiti to try a case of manslaughter. Monday 28th. I kept my letter open in case anything new should have occurred in the interval. I saw Mr Grace on Saturday upon his way to Auckland. He brings no news, and has advised Te Heu Heu to write to His Excellency if there is anything to dissatisfy him. One of the Natives who came in the ''burning party" came here this morning. He is an old friend of mine and came to me for a pipe. I gave him a lecture first and his pipe afterwards with which to digest it; he was very friendly. I gave him a number of circulars for his people, and he seemed well pleased when I told him that I should visit them. I am happy to state that the Natives at the South end of Taupo had nothing to do with the visit of Ngatiterangita. I beg to recommend that a letter should be sent to the Native Chiefs named in the margin thanking them for this early proof of their loyalty. I have, &c, George Law, R. M. The Hon. Attorney-General, Auckland.

e™ r h. ipi ' H 'r K e ar^ i,i j "l'Bi' Petaera,' wharerahi,' Te Rawlti, To Kume.

No. 4. REPORT FROM GEORGE LAAV, ESQ. Oruanui, 28th April, 1862. Sir, — I have the honor to inform you that I have been requested by the Natives to proceed to Te Whaiti for the purpose of trying a woman accused of manslaughter. I find upon referring to my instructions, and to my conversation with you upon a case nearly in point, that I have received very great latitude; but I question very much whether I can deal with such a serious case as this; I must of course be guided very much by circumstances. A question, however, occurs to me—Should I commit for trial? Must the women and witnesses be sent to

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TAUPO.