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That whatever may bo the error they have committed in so doing, they cannot be viewed in the light of mere rebels. That to secure this island from foreign interference Captain Hobson took possession of the whole in the name of Her Majesty, but neither he nor any of his successors have ever attempted to exercise any rights of sovereignty over the interior tribes. When subdued, therefore, they will have a claim to be treated as any other sovereign power subdued by our arms. That whilst it may be advisable and salutary to punish the leaders of this war by the confiscation of their lands, it cannot be claimed just or equitable to confiscate the entire territory of the hostile tribes. That the knowledge of such intention is calculated to retard the pacification of tho island, and to prolong the struggle of a race so pre-eminently warlike, to the last extremity, in every corner of the Island° That in fact it gives no other alternative to the Natives, nor any sufficient inducement to submit ; but on the contrary, were honorable and liberal terms offered, on condition of their submitting to Her Majesty's rule, it is highly probable so shrewd and sensible a people would at once accept them, and voluntarily lay down their arms. Trusting that this statement will fully explain my views on this subject, T have, &c, &c, BictiAßi) Tayloi?. The Private Secretary, Government House. No. 7. MINUTE by the Colonial Secektabx. The Colonial Secretary begs to acknowledge His Excellency's Memoranda of the 2nd and 3rd May, relative to a passage quoted by the former, from a book by the Eev. Mr. Taylor, in his remarks on Lord Chichester's letter. The Colonial Secretary wasuot aware that his Memorandum, intended for His Excellency's, His Grace the Duke of Newcastle's, and Lord Chichester's perusal, would be subjected to criticism by any other person in the Colony before its transmission to England, —the less so, because, at His Excellency's request, he altered the form of the Memorandum, as originally sent in, expressly to render it unnecessary that His Excellency should accompany it by any remarks of his own. The Colonial Secretary is not aware that he has drawn any inference from the passage quoted from Mr. Taylor's book other than a perfectly legitimate one, which, in a rather remarkable manner, illustrates his statement that the idea of confiscation per se was not novel to tho mind, nor repugnant to the moral sense of the Natives. He sees no reason why tho force of his argument (whatever it may amount to) should be weakened by an opportunity afforded to Mr. Taylor, not only to explain away the meaning of the quoted passage, but to argue, on independent grounds, the question of confiscation. The Colonial Secietary thinks that Mr. Taylor's argument conld be very easily answered, but he respectfully declines having his official remarks subjected to such out-of-door criticism, while still in official custody, and he has really neither the time nor the inclination to engage in controversy with every person from whose printed books he may cite a passage in support of his opinion. Iv the present instance, however, it seems to the Colonial Secretary of very little consequence whether the quotation is appended or not, — and, if His Excellency will oblige him by returning the documents, he will erase the quotation, and the roference to it. William Fox. Auckland, 3rd May, 18G4. This is the passage to which His Excellency called Mr. Taylor's attention, and which was subsequently altered, by leaving out the allusion to that gentlemen. W. Fox. Appendix C. The following passage, from the " Ika-A-Malt," by the Eeverend E. Taylor, a missionary of upwards of twenty years' experience, illustrates the feelings of the Natives on confiscation, and their habit of enforcing" it in their own wars. Speaking of Governor Fitzroy's condonation of the Wairau massacre, he says:—■ " It is a pity the Governor was not acquainted with Native customs, otherwise he would have claimed the district as having been paid for with blood ; this was what the chiefs themselves expected. It would have asserted our power, and made a salutary impression on the Native mind, for it is a fixed custom among themselves. Captain Fitzroy's not doing so made that chief Eangihaeata entertain a very low opinion of Bi itish power. He is reported to have said, 'He Paukena tc Paheha '—' The Governor is soft, he is a pumpkin.'" No. 8. MEMOEANDUM by the Goteiijtob. The Governor has received the Colonial Secretary's Memorandum regarding a quotation from Mr. Taylor's work. He thinks a misunderstanding has arisen. He has not submitted the Colonial Secretary's Memorandum to the criticism of any person whatever.

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PAPERS RELATIVE TO NATIVE A.FFAIRS.