: -No. 2.

In conclusion, with reference to His Excellency's statement, that His Excellency for the first time was made aware, by the Minister for the Colonial Defence, at Pukcrimu, on the 15th of April last, of the points on which it was proposed to locate the Waikato Militia, Ministers beg most respectfully to Btate • (1) That the frontier proposed to be established with the military settlers was stated in the General Assembly to be a line from Raglan or Kawhia to Tauranga ; and (2) Most respectfully to recall to His Excellency's recollection that an Executive Council, at which His Excellency presided, was, at the request of General Cameron, held on the 14th of December, 1863, when Ministers advised that the frontier line referred to should be established and held, and Ministers were undur the impression that the military operations in the Waikato district since that time have been carried on with that object in view • (3) To the same end, Ministers, in their Memorandum of the 27th of February, expressed their approval of General Cameron's proposal, conveyed to them by the Governor, to hold possession of Awamutu, Eangiawhia, and Kihikihi, and although Ministers did not think it necessary that the line between Rangiwahia and Kihikihi should be then occupied, they stated that they deemed it of the first importance that a position as far up the Waikato as was conveniently navigable by steam boats should be taken and held. Indeed, from the time His Excellency's present advisers took office till the present time they have never proposed or contemplated any other line of frontier than the one from Raglan or Kawhia to Tauranga. Ist July, 1864. Fbedk. Wiiitakeb. No. 19. MEMORANDUM by the Goyernob. The Governor begs to be allowed to make a few remarks on the Ministerial Memorandum of the Ist instant, regarding the location of the AVaikato Regiments. 1. On the subject of the Executive Council, held on the 14th of December. The Governor has seen the General on this point ; neither of them have any recollection of any mention being made at the Council of a frontier line between Kawhia and Tauranga being established and held. On the contrary, the General's impression is that the subject of Tauranga was only mentioned in a conversation which passed between the General and Mr. Whitaker in the Council room, after the Council was over. 2. With regard to the Ministerial Memorandum of the 27th of February, the Governor still cannot find anything in it which could have created in his mind the impression that it was proposed to locate permanently the Waikato Regiments on a line extending from Kawhia to Tauranga. 3. The Governor, in his Memorandum of the 19th of January, 1864, in which he reluctantly assented to the expedition to Tauranga, was then so far unaware that it was intended by Ministers to permanently occupy Tauranga with one of the Waikato Regiments that he only assented to the expedition there on the condition that it should be of a temporary character, and might be at any moment withdrawn if any urgent cause rendered such a course desirable. 4 The Governor would again state that he never, until the 15th of April, at Pukerimu, heard that the Waikato Regiments were to be stationed on a line extending from Kawhia to Tauranga. The Minister for Colonial Defence then told him that this arrangement was to be made, and that it was shewn o;i a plan which he had. A note of the points at which it was proposed to locate the Waikato Regiments WM then shewn to the Governor that he might communicate with the General on the subject. J G. Gket. Government House, July sth, 1864. No. 20. CORRESPONDENCE REFERRED TO IN MEMORANDUM No. 8 OF THIS PAPER. COPT of a Letter from Lieut.-General Cameiion, X.C.8., to Governor Sib Geoege Geet, K.C.B. Head Quarters, Auckland, 25th May, 1864. Sim, 1 have the honour to inform your Excellency that arrangements are being made by the Commiefariiit Department, and will shortly be completed, for the transport of supplies during the winter the whole distance from the Waikato Heads to Te Rori and Pukerimu, mid that, as far as regards the supply of the troops in the positions they at present occupy in the Province of Auckland, the Land Transport establishment may be considerably reduced. Your Excellency, however, in your letter of the 10th instant, having expressed a wish that military operations may be carried on in the country between Taranaki and Whanganui, and having also implied the possibility of future operations at Tauranga, it appears to me that a very trifling, if any, reduction ought to be made in the Land Transports. I have been instructed to keep dowu the expenditure on account of transport to the lowest point consistent with the requirements of the public service ; but so much delay and embarrassment Vas experienced in the operations on the Waikato from want of transport, and from the difliculty of collecting and organizing its quality, that great care is necessary not to reduce it prematurely. The amount of transport required for operations south of New Plymouth will of course depend on the strength of the force employed, and the distance at which it will have to bo supplied ; but it is difficult for me to form avy judgment upon these points, as I am ignorant of the object and extent of the operations contemplated by the Government. I would observe that it will hardly bo

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