D.—No. 6.

No. 1. My Loed Duke, — Government House, Auckland, 4tli January, 1864. It is with much regret that I report that upon the 21st ultimo most barbarous murders were committed by a native in the Kaipara district to the north of Auckland. 2. On the evening of that day a native, during the absence of Mr. Thompson, attempted by surprise to murder all the females of his family, consisting of a settler and three daughters. He unhappily succeeded in killing the mother and one of the daughters, but the other two girls contrived to escape from him. 3. The murderer was believed to be a native named Ruarangi. There is no doubt, I think, that he is the guilty person. The motives that could have induced him to commit the crime are still unknown. 4. The most active exertions were made by the Government to induce the natives to secure and give up the supposed murderer to the police. From the enclosed papers your Grace will find that they have done so, and that the prisoner has been committed to take his trial for murder. 5. I regard Mr. Fox, the Colonial Secretary and Minister for Native Affairs, as being entitled to very great credit for the energy and activity he displayed in inducing the natives to produce and hand over the supposed murderer to the police. I have, &c, His Grace the Duke of Newcastle, K.G., &c., &c, &c. G. Grey..

No 2. My Loed Duke, — Government House, Auckland, Gth January, 1864. I have the honor to transmit authenticated copies of the several Acts passed by the General Assembly of New Zealand during its last session, and of Bills which have passed through both Houses, but which I have reserved for the signification of Her Majesty's pleasure, together with explanatory memoranda by my Responsible Advisers on these several enactments. 2. I only think it necessary to trouble your Grace with the following remarks:—Firstly, I beg to recommend that the several bills which I have reserved for the signification of Her Majesty's pleasure may receive the Royal assent. Secondly, In their remarks upon the " Suppression of Rebellion Act," and the " New Zealand Settlements Act," my Responsible Advisers observe as follows : — "In former wars in New Zealand the natives have been permitted to leave off fighting when they thought fit, to keep all the plunder they had obtained, and they have not been subjected to any kind of punishment for disturbing the peace of the country, killing Her Majesty's subjects and destroying their property. If native wars are to be prevented in the future, some more effective mode of dealing with those who create them must be adopted. The question then is in what way for the future can the peace of the Colony be best maintained?" 3. I do not think that this passage accurately describes past events. For instance, in the war which arose about the valley of the Hutt, much land was taken from natives which they claimed, although the Commissioner appointed by the Crown had decided against them. Several powerful chiefs were for some time retained in confinement for their conduct on that occasion. The natives engaged in the war were forced to retire beyond the village of Otaki, and other punishments were inflicted on the natives; but, without discussing these particulars, I would deal with the general question. 4. There are two modes of dealing with subjects after a rebellion: to treat them with great generosity, or with severity. I believe the former method will generally be found to be the most successful. When, therefore, former wars terminated, the natives were very generously treated, and no large forfeiture of lands declared. In one way this policy was certainly eminently successful; for in the present war our former enemies, had they joined against us, might have inflicted the most serious injury upon us ; whereas they have I believe, to a man, refrained from in any way taking advantage of our present difficulties; and many of them have earnestly expressed their readiness to aid us if we wished them to do so. 5. I do not think the same policy would now succeed to the same extent. The natives have acquired too many arms and too much ammunition. The war has become more a war of races ; we have used no native allies in this war; it has lasted longer than any previous war, and more tribes have been drawn into it, and it originated, at least in the estimation of a large number of the natives, in an attempt on our part to establish a new principle in procuring native lands, and in an overlooking of their interests in other respects. Hence a wide-spread distrust and dislike of the Government has sprung up. The early successes of the natives at Taranaki have also emboldened their young men. All these causes make me think that it is necessary now to take lands from the natives who have been in arms, and to locate an European population upon them. But acting upon the principle of the great wisdom of showing a large generosity towards defeated rebel subjects, I would not carry the system too far. 6. I would call your Grace's attention to the remarks of my Responsible Advisers upon the "New Zealand Loan Act," and to their earnest request that the Imperial Guarantee may be given for the

DESPATCHES FROM HIS EXCELLENCY SIR GEORGE GREY, K.C.8., TO THE RIGHT HON. THE SECRETARY OF STATE.