E.—No. 1.

Ashwell. who asked for a few minutes conversation with me. lie said it was about the prisoners going to kawau. 1 laughed, and said. " I know whose heifer you are ploughing with." After,further conversation at that time, and on the following Monday when I again met him >>•• appointment. I agreed that Mr. Auhwell should write me a letter proposing the plan, which might enable me to open communications with His Excellency on the subject. This he did as follows: — " Auckland. July 11th. IKGI. "Sin. —A tew weeks ago I had a conversation with His Excellency the Governor on the best means of preserving the natives from the demoralization which in all probability would be the consequences of the war. "It occurred to me that at least a remnant of the Waikato natives might be saved, if the prisoners now mi hoard the hulk were located in some isolated position and a plan in some measure similar to the Moravian were adopted for them. They would then lie free from the temptations to which they would otherwise be exposed by their proximity to the military posts on the Waikato. The Kawau Island, I am convinced, would be a good location to try the experiment, and I believe I am not mistaken in thinking that His Excellency Sir George Grey would give his assent to the plan. " If this plan should meet the approbation of the Government, would yon kindly mention it to the Governor. "I can only add that I shall be most happy to forward your views as tar as I am permitted by the Church Missionary Society. " I have, &c, "To the Hon. the Colonial Secretary. "B. V. Asiiwki.l." On the day following the receipt of this letter, 1 forwarded it to His EisceMeney, with a memorandum in the following words:— "Ministers beg respectfully to forward for His Excellency's perusal a letter, addressed by the Rev. B. Y. Ashwell to the Colonial Secretary. AV rill His Excellency oblige Ministers by stating ■whether Mr. Ashwell'is correct in believing that His Excellency would give his assent to the plan r "12th July. 1864. " William Fox." —Having first marked in the margin tin' passage referring to His Excellency's assent. His Excellency's reply is as follows: — " The Governor would gladly assent to such a plan if it were to be carried out in a manner which afforded a fair probability of success. " July 12th. 1864. ' " G. Geev." On receipt of this, preparations were immediately made for the removal of the prisoners, by His Excellency. Mr. White, Tapihana, and five or six other natiu-s going to Kawau. where they inspected the ground, and determined on the site for their operations. Wiu.iam Fox.

% No. (')[. MEMORANDUM on His Excblkkxct's sending Mr. Wiiitk to Mr. Tom relative to the Prisoners going to Kawau. On the Sth or i'th of July last, Mr. White caae to the Colonial Secretary's office about 3 p.m. He informed the Colonial Secretary that he had just left His Excellency the Governor. That His Excellency had consulted him as to a plan for sending the prisoners to Kawau. where he proposed I let them cultivate part of the island, and settle down there. Mr. White said thai His Excellency had directed him to see the Colonial Secretary about it, and to ask whether he would agree to the plan. The Colonial Secretary discussed the subject with Mr. White, but told him that he could not receive such a proposition from a subordinate officer of the Government: that if His Excellency wished to consult him as a Minister it must be done in the usual way, by direct communication, and not by a verbal message through a third party. The above statement is_correct. T. A. Whitk. Auckland. 26th September, 1864.

No. 66. MEMORANDUM on proposed removal to Kawau. Referring to Hi* Excellency's Memorandum on Mr. Ashwell's letter, the Colonial Secretary begs to inform His Excellency that he has discussed that gentleman's proposal with him personally, and that it amounts' in substance to this : that the prisoners should bo located at Kawau, giving a pledge thai they would not leave without permission of the Government ; that their wives and families should be allowed to join them there, and that with His Excellency's consent they should cultivate so much of the island as should be necessary for their maintenance ; that the Government should bear the cost of establishing them there in the first instance, providing implements, seed, &c.; that afterwards they would be a self-supporting community. A magistrate and a medical officer would form part of the establishment, and Mr. Ashwell would give his own services as a missionary and clergyman. The details of such a plan would not be very difficult to settle, but the Kawau being His Excellency's private property. Ministers would not wish to take any step in the matter without full concurrence. All that they can say at present is that they enter very cordially into the proposal, and will be prepared to give every assistance in their power towards carrying it into execution. July 12th, IS(H.' Winr.iAM Fox.

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MEMORANDA AND REPORTS