E.—No. 1.

thai the power bestowed was real and not deceptive, assumed pecuniary and other burdens unequalled in the history of any Colony, it is noi just nor right that the imperial Government should resume the power so bestowed, while it leaves the Colony subject to the burdens. 2. That if the question of the disposal of the prisoners is removed from the font rol of the Colonial Ministry, and open to be settled against their advice, the present disturbances may In1 terminated on a, basis Which will involve the elements of future difficulties with the natives. For any such future difficulties the Imperial Government, and not the Colonial, will be morally liable. 3. If the prisoners are to be held under the absolute control of the Governor as the representative of the Imperial Government, and to he disposed of at his pleasure against the advice of his Kesponsible Ministers, then their custody, with ita responsibility and eosl, ought to be undertaken by the Imperial Government. : Ah-. Cardwell bases his decision chiefly on the fact that " active operations are being carried on under the conduct of Her Majesty's officers, and in the main by Her Majesty's military and naval forces." Had this argument been used by the Duke of Newcastle as a ground for withholding responsible government altogether it might have had weight. But the same circumstances existed at the date of his despatch. Large bodies of Her Majesty's military and naval forces were then in the country ; the temporary truce which existed at that time was only secured by the presence of those forces, and Ministers cannot admit that their continued presence or the resumption of active operations by them affords any ground for a departure from the terms on whicli responsible government was conferred by the Duke of Newcastle. If the presence of such force was no bar to responsible government being given, it affords no reason for its resumption. 5. Mr. Cardwell states that " while lie fully recognises the right of the Colonial Government to deal with matters of native policy propei'ty so called," he considers that this case does not fall within that category, [t is to be regretted thai Mr. Cardwell should have used terms m vague and ambiguous. What is meant by "native policy properly so called" ? If Mr. Cardwell means the mere ordinary details of official routine, the appointment ot assessors or constables, the providing of lodgings tor natives visit in:.; Auckland, or the distribution of " Hour and sugar,'' it should be stated that this is not what the colonists understood when they accepted "responsible government in native affairs," to be exercised (to use His Excellency's words) in the same manner as in European affairs. They understood it to mean such a substant ial powCT of directing the policy of Government as might affect great political issues, the maintenance of peace, and the future of the two races. Nothing less, in their opinion, is consistent with good faith on the part of the Imperial Government. And if so very grave a question in reference to the termination of tin- present rebellion as the disposal of the prisoners is to be removed from the control of the Colonial Ministry by the absolute decision of the Secretary of State they cannot but regard it as a very great departure from the compact which was established between Her Majesty's Goverameni and the Colony in 1868. If it is intended to withdraw the power incident to responsible government. Ministers submit that both sides of the question ought to be looked at. The Imperial Government, by the arrangement of 1868, proposes to shift on to the shoulders of the Colony the whole cost and responsibility of any native disturbances subsequent to the present. The Colony willingly accepts the position, on condition that i) has substantial power in bringing to a conclusion the existing difficulties. If responsible government is to be withdrawn piecemeal, by instructions from the Secretary of State issued from time to time, the Colony will find itself stripped by degrees of the power while it retains the burden, and the Imperial Government will exercise all the power while it shifts the burden on to the Colony. (!. Ministers are satisfied with the arrangement lately made for the custody of the prisoners by their removal to Kawau. and have no reason to doubt that His Excellency also approves of it. They regret that Mr. Cardwell, writing in ignorance of the circumstances which led to a difference of opinion between His Excellency and liis Ministers, should have expressed himself in terms the tendency of which is to unsettle that arrangement, and which oblige Ministers to protest against the.conclusions at which he has arrived. Ministers will be obliged by His Excellency forwarding to Her Majesty's Principal Secretary of State for the Colonies a copy of this memorandum. 6th September, 1861. WniiAM Fox.

No. 71. MEMORANDUM of If is Excellency respecting the rranßiniswion of Ministers' Memorandum of 6th September, to Skcbetaki of State. The Governor has received the Ministerial memorandum of the 6th instant, upon the subject of the treatment of prisoners taken by Her Majesty's Forces during the existing disturbances. In compliance with the wish of his Advisers, the Governor has transmitted it to the Secretary of State for the Colonies, and has accompanied it with the Despatch, a copy of which is enclosed. Auckland, September 7th, L 864. (i. $ssr.

Enclosure 1 to No. 71. Government House, Auckland, 7th September, 1864. Bray— My Responsible Ads isera have requested me to transmit the enclosed copy of a memorandum in which they enter a prutestagainst your Despatch No. 76, of the 27th June, 1861, on the subject of Prisoners taken by Her Majesty's Forces during the disturbancesDrevailing in this Colony. 2. lam anxious that the real question at issut in this case should be understood, and I wish, therefore, to point out that my Responsible Advisers have, in my belief, in the enclosed memorandum, lost sight of what I regard as the point which is to be determined. 1 understand them to say that

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RELATIVE TO MAORI PRISONERS.