E.—No. 1.

His Excellency no sooner received the draft instructions to the commission, which showed how searching an investigation they were prepared to direct, than His Excellency expressed his intention to abandon the enquiry altogether. Ministers are contented to let this part of the question remain as it is. In thus yielding to Jlis Excellency's wishes. Ministers understand that they cease, as for as it is constitutionally possible for them to do bo, to be in any way responsible for the custody or disposal of the rebel prisoners, which will rest entirely with His Excellency cm that basis on which he has placed it in his memorandum of the 28rd instant and on the terms as to refund to the Colony of the expenses, expressed in the memorandum of Ministers of the previous day. In conclusion. Ministers must observe that had His Excellency, when the rebel prisoners were tirsl taken, assumed the position which he now does in relation to this subject, viz.. that having been taken by Imperial troops their detention and disposal were matters for his administration as tinRepresentative of the Imperial Government, Ministers would probably not have opposed His Excellency's views, though they would have claimed the right to advise as to their ultimate disposal as being a question of vital and local importance to the Colony. Biit His Excellency never even hinted at such a proposition at that time. The prisoners were handed over by the Imperial authorities to the Colonial Government, not on the request of the latter, which has had on its shoulders ever since the grave responsibility and anxietj attending their detention. Now, at the end of more than six months. His Excellency reclaims the prisoners on the ground that they were taken by Imperial troops. Ministers cannot help suggesting that if His Excellency's present views are correct, a grave error was committed by him in taking the prisoners out of the custody of the Imperial officers and placing them in that of thi' Colonial Government, and they beg to repeat that so long as they were in their custody they can only consider that they were mo on the usual terms of Responsible Government. ' L». r)th June, ISfil." Wimjam Fox.

No. CO. DRAFT INSTRUCTIONS to Dr. Shohtlaxd forwarded, to His Eycku.km j with No. 1!». His Excellency Inning taken charge of the rebel prisoners on account of the Imperial Government» the Colonial Government is very desirous of avoiding for the future both the reality and the appearance of responsibility in connexion with their detention or custody. You will be so good as inform the officers in charge of the prisoners that the Colonial Government has no longer anything to do with the custody or maintenance of the prisoners, and direct them no longer to report or communicate with the Native Office on the subject, but directly with His Excellency; and you will be so good as take care that no officers of the Native Department have for the future anything to do with the matter. If His Excellency should wish for any assistance from that department, he will no doubt request it in the usual way through the Colonial Secretary. As the Colonial Government would be exceedingly sorry to put His Excellency to the smallest; inconvenience, the services of Mr. T. A. White, of the Native Office, now acting as Interpreter and Superintendent of Prisoners on board the hulk, and who probably could not be easily replaced, will be ;ii His Excellency's disposal should he wish it; but he must be recognized as transferred for the time to His Excellency, and will take his instructions exclusively and directly from him. and his salary for the time will not be chargeable to the Colonial Government. You will also be so good as inform the Rev. C. Baker, and Rev. T. Buddie, that the passes issued by me arc cancelled, and that if they wish them to lie continued they must apply to His Excellency. Inform Dr. Sam and any other gentlemen who hold appointments in connection with this branch of administration, that their services are no longer required by the Colonial Government, but that they will be paid by it up to the date when they may be engaged by His Excellency, or (if he does not require their services) till tho end of the ensuing month (July). Bequest Dr. Knight (Auditor General) to furnish, as early as he conveniently can, a full account of all the expenses connected with flic imprisonment of the rebels, from the day of their arrival in Auckland, including purchase of hulk, food, clothing, buildings, repairs, salaries of officers, and extra pin of guard of Colonial troops employed on board the ship. "William Pox.

No. 51. MTgMTYRA TSTTtTTM of His Excxlugkcy, in reply to Ministers' Memorandum of 25th June. The Governor has received and considered the Ministerial memorandum of the 25th instant, in which Ministers inform him that they conclude he is determined to carry out his views regardless of his Responsible Advisers, lie regrets this should have been said. He imagined the suggestion made by themselves in their memorandum of the 3rd of June, was made in a friendly spirit of accommodation, and that in accepting it he would not have been met with such a statement as he has above quoted, after which he cannot carry out his intention of accepting the suggestion made by Ministers in their memorandum of the 23rd of June. Any further action the Governor takes in this matter he can only take after careful deliberation as to the manner iv which he can constitutionally have that done which he may think ought to be done. Tnere are other reasons arising out of the Ministerial memorandum of the 25th instant which would prevent the Governor from at present carrying out his intentions as expressed in his memorandum of the 24th instant. Ministers now tell the Governor that they have consulted many of the persons best qualified to judge on the subject, and that those persons have been unanimous in their condemnation of the release of the prisoners as a body, either absolutely or on parole, at the present time. If the Governor now accepted tho proposal of Ministers as made in their memorandum of the 25th, it might be thought that he had proposed to liberate tho prisoners as a body. On the contrary, h»

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RELATIVE TO MAORI PRISONERS.