D.—No. 5.

" The Merchant Shipping Act, 1854," can exercise the new powers vested in such Courts by " The Merchant Shipping Act Amendment Act, 1862," without further legislation. 2. The Governor asks if, supposing the Courts can legally exercise the new powers, it is still necessary (as would appear from this Board's letter to the Colonial Office above referred to) that the report of investigation should be confirmed by the Governor as required by sec. 212 of " The Merchant Shipping Act, 1854." And, further, whether that confirmation is to be made after the sentence of the Court has been pronounced, or simply upon the report of enquiry. As regards the first question, my Lords are of opinion that there is nothing in the Imperial Act to lead them to suppose that further legislation is necessary. It may be, however, that the Colonial Act is so worded as to confine the power of the Court established at the Cape, and if so, further Colonial legislation would be desirable, as suggested by the Attorney-General. With regard to the confirmation of the report of enquiry by the Governor, my lords desire me to observe that the object of the provisions in "The Merchant Shipping Act, 1854," sec. 212, par. 5, was no doubt to enable the Board of Trade to rely in the first place on the competency of the Court making the report; and, secondly, on the report being carefully revised by the Governor. My Lords are, therefore, strongly of opinion that the act of confirmation by the Governor should take place. But looking to par. 3 of the 23rd section of "The Merchant Shipping Act Amendment Act, 18G2," my Lords think that it would be right for the Colonial Court, should they pronounce sentence in any case at the time of trial, to make the sentence provisional on the confirmation of the report by the Governor. These reports should, of course, always be sent to the Board of Trade with the Governor's opinion. I am to suggest that instructions to the above effect should, if the Duke of Newcastle see no objection, be addressed to Sir P. E. Wodehouse. I have, &c.. The Under Secretary of State, Colonial Office. T. H. Farrek. No. 22. Sib, — Downing Street, 26th May, 1864. I have had under my consideration the following Act, passed by the General Assembly of New Zealand in their last Session :— No. 10. "An Act to enable Provincial Legislatures to pass laws authorizing the compulsory taking of Land for Works of a public nature." I observe that this Act applies to all land within the Province, without excepting those to which the native title has not been extinguished. This appears to me open to grave objection in point of policy. The Home Government has, I think, under present circumstances, a right to require that laws calculated to affect so seriously the relations between the European and native races, should be enacted on the responsibility and by the authority not of a Local Council (who from the nature of the case can only represent local interests), but of the General Assembly, whose decisions are adopted with reference to the interests of the whole Colony, and are brought under the cognizance of the Home Government. I shall be unable, therefore to advise that the Act No. 10 should be confirmed by the Queen iv its present shape. If native lands were excepted from its operation, it would be unobjectionable. I have, &c., Governor Sir George Grey, X.C.8., &c, &c, &c. Edward Cardwell. No. 23. Sib,,— Downing Street, 26th May, 1864. I transmit to you for your information copy of a paper which has been drawn up by Mr. J. E. Gorst, entitled, "Observations on the Native inhabitants of Eangiaowhia and Kihikihi." I have already expressed my hope that the present war would not be made the occasion of throwing back into savage life any portions of tribes which appeared likely to emerge from it, and to attain that material prosperity which is the best guarantee against turbulent innovation ; and I forward to you this representation of Mr. Gorst in the fullest confidence that, sharing in this view, you will give to any case which comes before you just and dispassionate consideration, and decide it upon grounds of equity and sound policy. I have, &c, Governor Sir George Grey, X.C.8., &c, &c, &c. Edwaed Cardwell. Enclosure to No. 23. Observations on the Native Inhabitants of Ranoiaowhia and Kihikihi. The land around Eangiaowhia and Te Awamutu, extending to and including part of Kihikihi, belongs to natives of the great Waikato tribe. The territory of Ngatimaniapoto begins at Kihikihi, and extends thence to the South-west. This country is not a barren waste. Besides the great villages at Eangiaowhia, Kihikihi, and Euakotari, numerous little hamlets are dotted about the country, consisting of three or four native houses surrounded by their patches of cultivated land. Even those parts of the country which appear to be only a barren waste of heavy fern land, would be found on enquiry to have been once under cultivation, and to be now used as a pasturage for horses, cattle, or pigs. In a few years these parts would be again brought under cultivation in their turn, according to the sort of nomadic agriculture practised by the Maoris. The whole district is occupied and used ; it bears marks of having been enriched and improved by the labour of the inhabitants. Good fences have been erected. Eangiaowhia, for instance, is surrounded by a fence many miles in circuit; roads arc made in various directions ; bridges have been thrown over impassible swamps, and a good many mill-dams have been constructed. A considerable part of the land was covered a generation ago with ancient forest, which the industry of th« Waikatos has cleared. The inhabitants of this district have been since 1857 adherents of the Maori King. In opposition

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DESPATCHES PROM EIGHT HON. E. CARDWELL, M.P.