E.—No. 1.

The Governor reacta Mr. Cardwcll's Despatch of the 27th of Juno, as applying to prisoners actually in custody, and he regards the present case as one in which he should receive tho advice of his Responsible Advisers. Ho will be happy to receive that advice, and to co-operate with them in every way in putting an end to the state of alarm of wiiicli the Matakana settlers so naturally complain. The subject regarding which they have complained to the Government, is one in relation to which the Governor thinks that some steps should be taken without delay. He regards tho matter as so serious a one, that he will in any way in. his power aid his Ministers in the steps they inav think necessary to take. October Bth, 1864. G. Gbey.

No. 31. MEMORANDUM of Ministehs regarding Mr. Caedwell's Despatch to Hrs Excellehct. Ministers beg most respectfully to state that they do not read Mr. Cardwell's Despatch in the restricted sense which His Excellency places on it. They cannot, see a substantial distinction between prisoners in custody and prisoners who have been admitted to parole and broke it. At the same time Ministers consider the case as so urgent that they are willing to forego their opinion, with a view to meet this pressing difficulty, and to co-operate in any way that they can render efficient assistance. As His Excellency, on the escape of tho prisoners from Kawau Island, took tho matter in his own hands, and carried on negotiations with them to return or to settle on the main land opposite the island, and made other proposals, reported by Mr. White in documents already forwarded to His Excellency, Ministers feel that His Excellency is in a far better position to suggest a course than his Ministers. Tho matter has now become very complicated, and Ministers fool at a loss what courseto recommend, but as His Excellency requests that Ministers should render him advice, they will endeavour to do so to the best of their ability ; but before they take the matter into consideration they beg that His Excellency will be pleased to inform them whether it would bo possible to capture the late prisoners by a military expedition, and if so whether Her Majesty's naval and military forces would bo available for the purpose. Bth October, 1864. Feed. Wiiitakeb.

No. 32. MEMORANDUM of His Excellency, respecting the Mahurangi and Matakana Settlers. Tae Governor, in reply to tho Ministerial Memorandum, dated 10th October, 1564, regarding the Mahurangi and Matakana settlers, would offer the following remarks: — If these escaped prisoners who quitted the Kawau have done so with the intention of bringing thei horrors of war on the peaceable and inoffensive northern districts, this is clearly a case in which overy effort should be made to bring them to condign punishment. There may prove to be an additional reason for this. The Governor always feared that tho murders committed by Ruarangi were committed with the knowledge and connivance of other natives for the purpose of bringing on a war. He understands that T&whitu, a rolative of Rnarangi's, states that he induced the natives to leave the Kawau, with the express object of obtaining revenge for Ruarangi's death. If the Governor is rightly informed on this poinf, then it seems more probable that the murders committed by Ruarangi were political murders, and that his associates, if they find they can gather sufficient strength to commence a war, may at once do so. If such an evil is to fall upon the country, looking to tho fact that the Northern district is an existing settlement, with farms scattered through it, and in some parts well inhabited by most industrious and deserving people, the Governor would for a time neglect all other considerations which were of less Dressing importance to save the Northern district and its inhabitants. What he would advise therefore is that the deputation of settlers should bo seen, and every information regarding the district, and the positions occupied by its inhabitants, should be obtained from them, and that a comprehensive plan should at onco bo framed for the protection of tho district, and for active operations against tho natives who may be in arms, and that preparations should without delay be mado for carrying these out the moment the real intentions of tho prisoners and those natives who arc with them are manifested. The Governor has taken means for ascertaining, with some degree* of certainty within tho next few days, what their intentions are, and in the meantime ho thinks that the other measures he has indicated should be taken as speedily aa nossiblo, and in a manner that may draw no moro attention to them than is absolutely necessary. The Governor sends with this tw» letters from the Bay of Islands chiefs, which he received this morning, expressing their serious objection to the course the escaped prisoners are pursuing. If it should happily prove that no disturbance does tako place in the Northern district no harm can result from the precautions which will have been taken to be prepared for it if it comes. Government Houso, Auckland, 10th October, 1864. Gr. Geet.

No. 33. MEMORANDUM regarding the Mahurangi and Matakana Settlers. The deputation of Matakana sottlers that called on Mr. Whitaker on "Saturday, as they stated bj direction of His Excellency, with a petition in reference to tho escaped native prisoners, will call again, this morning lor an answer. Mr. Whitaker is desirous of receiving 1113 Excellency's instructions as to what he wishes done.Will II is Excellency see the deputation himsielf, as it is to him that the petition is addressed, and the depul ation came to see him ? or would His Excellency prefer making a communication to them through Mr. Whitaker ; and if so, of what nature-? 10th October, 1864. Fred. "Whitakeb.

79

RELATIVE TO MAORI PRISONERS.