E.—No. 3. SECTION I.

that, accompanied by Mr. Parris, I rode through the Bell Block District on the 16th instant, and visited the several Native pas, as far as Mahau's, at the junction of the Waiongona and Mangarata rivers, without seeing any signs of hostile Natives. On the following day, Hapurona went to Mataitawa, and assembling the Natives of that place, called upon them to commence the war against the Europeans, which the Mataitawa Natives declined to do until they hoard further from Waikato. Hapurona, meanwhile, is instructing himself and about twenty followers at Te Area. He has threatened to destroy the Blockhouse at Matarikoriko, in order to obtain timber to construct his whares and defences at Te Area. As I understand the Natives living in the several blockhouses at Waitara are still paid by Government for protecting them, I would submit that as the troops are withdrawn, and that it would be difficult to afford them aid in sufficient time to be of service, that such payment should be discontinued. On the 19th, I received the enclosed report from the Officer Commanding at Bell Block. I forward this report to show how difficult it is to arrive at the truth, even when statements are so circumstantially detailed ; through Mr. Parris I have ascertained that the Native (Watini) was not at Mataitawa, and that he was ejected from the neighbourhood of Te Area before he had an opportunity of seeing anything. The five Natives from Wellington districts are at Warea with the Taranaki Natives, and are supposed to be a deputation from the Southern Natives to learn the news, which has been grossly exaggerated, as will be seen by the accompanying translation of a letter addressed to Komene by a Native ordained ' Deacon,' who lives at Archdeacon Hadfield's place at Otaki. This letter accounts in some measure for a report received a few days ago, viz., that the Taranaki Natives were prepared to arm all Natives who would join them —doubtless as an inducement for the friendly and unarmed Natives to join them. At Mataitawa and Kaitake the Natives appear to be busily engaged in planting their early crops ; they never dare to trespass on European land, nor can I make out that more than thirty are ever seen at Kaitake. At Mataitawa very large clearings have been made, and the flagstaff which has been erected within the last six months, and which I have every reason to believe was rigged out and fitted by tradesmen in this town, stands out very conspicuously as seen from the road to Waitara. I have, &c, H. 6. Waeee, Colonel Commanding Troops, The Assistant Military Secretary. Taranaki. EEPOET FBOM THE OFFICEE COMMANDING AT BELL BLOCK. Bell Block Stockade, July 19th, 1863. Sib,— I have the honor to state for the information of the Colonel Commanding the Troops in Taranaki, that a Native named Thomas Watson, belonging to the Hua Pa, visited the Mataitawa Natives yesterday, and states that when he arrived at the head of the sap, an armed Native ordered him back, because he did not wish him to see the works they have been constructing of late at Te Arei, but he saw that they had built a breastwork about seven or eight feet high, on the site of the old pa. He then struck into the bush and found Hapurona and Tikaokao in a small kainga some distance inland of Te Arei, and Hapurona expressed himself very much offended that Natives had been turned out of the town, and that if fighting commenced in Waikato, that reinforcements would be sent down to him, that he might create a diversion. They are very busy putting in their crops, and do not intend commencing until they have finished. Watson then went to Mataitawa and saw several Taranaki Natives, and five Natives from different districts about Wellington, who informed him that as soon as they returned, that the Natives would then commence fighting at Wairarapa. This is as correct an interpretation of what Watson said as I am able to give, in the absence of a proper Interpreter. I have, &c, John Kelly, To the Garrison Adjutant, Ensign, Taranaki Militia. New Plymouth. LETTEE FEOM KIWAI TE AHU TO KOMENE. Otaki, July 3rd, 1863. Fkiend Komene, — Salutations to you in the time of trouble. This is my word to you. I wish you to write to me respecting the engagement on the 4th of Juno. We have hoard the newspaper accounts, and we believe them. The King Natives have brought a report that one hundred and forty soldiers were killed, and that their rifles are in the possession of Tahana Turoa. Send particulars. Did the Natives recover their dead, or were they taken by the Pakeha, and were their pas taken. Prom your loving friend, , Eiwai Te Amtj.

Enclosure 3 to No. 32. COLONEL WAEEE, C.B., TO ASSISTANT MILITARY SECEETAEY. New Plymouth, New Zealand, 21st July, 1863. Sib,— As considerable excitement appears to exist at Whanganui regarding the protection to be afforded to the outsettlers in the vicinity of that station, I have the honor to submit, for the consideration of the Lieut.-General Commanding, the accompanying report, which I requested Lieut.-Colonel Logan, 57th Regiment, to be good enough to transmit, in order that I might forward his views as regards the defence of that settlement.

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TO THE SECEETARY OF STATE.