8.-^d. 2.

Governor, " that the Colouial Ministers are of opinion that Mr. Wood is in all respects qualified to acquaint your Grace, whenever you may require him to do so, with the views and opinions of the present Government of New Zealand on the state of the country and its requirements. For my own part I am quite satisfied that Mr. Reader Wood's large experience of New Zealand will enable him to afford your Grace much valuable information upon all questions conuected with its interests." Amongst the documents sent to England by His Excellency, for the information of the Secretary of State, was the financial statement of the Colonial Treasurer, in the concluding part of which the proposed frontier line from Tauranga to Eaglan is pointed out, together with the positions at which Ministers proposed to locate the different regiments of the Waikato Militia. The Governor also, in his despatch dated January 6, 1864, " earnestly recommended" the Secretary of State to aid the Colony by granting the Imperial guarantee to the loan of £3,000,000, which loan was for the purpose of enabling the Government to suppress the rebellion, to fill up the confiscated country with emigrants, and to undertake public works for the maintenance of the emigrants on their arrival; in fact, to carry into full effect the policy which was affirmed by the General Assembly. On his arrival in England the Colonial Treasurer found considerable anxiety prevailing at the Colonial Office as to the intentions of the Government in carrying out the details of the Settlement Act, and as to the extent to which the principle of confiscation would be applied. Upon these points the Colonial Treasurer gave full detailed information ; he traced on the map repeatedly the frontier line from Tauranga to Eaglan; he pointed out the localities at the head of the navigation of the various rivers as to the sites on which the military settlers would be located, who would be looked to to defend that frontier line, and for which purpose, after peace was made, no trooj>s would be required. 11 c explained, in fact, to the Secretary of State for the Colonies the whole plan as it had been exhibited by Ministers in the House of Eepresehtatives, and in addition he used, as he felt himself entitled to do, from the conversation with His Excellency specially referred to, and from many others at different times, the Governor's name as a willingly assenting party to the confiscation of territory to that extent. He is under the impression that he satisfied the Secretary of State that the Ministers desired to confiscate no more land in the rebel districts than that which had been justly forfeited by the misconduct of the Natives; that they intended to act with liberality by giving land to a considerable extent to Natives who would agree to live under English law within the defensible frontier line ; and that they had, in the operations they proposed to undertake, no other object than that of securing a permanent and lasting peace The Colonial Treasurer has reason to believe that had Her Majesty's Secretary of State been aware that His Excellency, at the time the measure left New Zealand, had never heard of the Ministers' proposed plan of operations, and was quite ignorant of its extent and scope, he would have regarded the plan less favourably than he appeared to do ; and when he learns from His Excellency's minute that he heard of it for the first time on April 15th from the Minister for Colonial Defence, the statements of the Colonial Treasurer will appear to have been a tissue of misrepresentations. The Colonial Treasurer would not have accepted on any consideration the mission to England which he undertook, had he not felt assured that the Government of which he was a member was in exact accord with His Excellency upon this subject of confiscation, nor would he in any way have been a party to offering inducements to emigrants to come out here had he not felt the most perfect assurance that there would be more than a sufficiency of land for their location ; in fact, the, as he believed, perfect accordance between the Governor and his Advisers upon this point formed the basis of the whole course of action he took in England, of the statements he made and of the pledges which he gave ; a basis which, from some misunderstanding or change of view, appears now to be swept away. As this is a matter which appears to the Colonial Treasurer to affect his veracity and his personal honour, he trusts that His Excellency will deem it of such importance as to enable him to comply with his request that this memorandum be transmitted to England for the information of the Secretary of State, Eeadeb Wood. Treasury, 2!) th September, 1864. MEMORANDA NOTIFYING RESIGNATION OF MINISTERS. Ministers enclose a memorandum from the hon. Colonial Treasurer on the subject of an interview which he had tne honor to hold yesterday with His Excellency the Governor. Ministers are unanimously of the same opinion as that expressed by Mr. Wood in this memorandum, and beg most respectfully to transmit herewith their resignations of the offices they hold. FeBDK. WIIITAKEE. 30th September, 1864. The Colonial Treasurer, on his return from England, waited officially on His Excellency to-day, at this interview the Governor was pleased to enter fully into the present state of affairs, and in the course of conversation the Colonial Treasurer understood His Excellency to say that the conduct of Ministers in standing in the way of his publishing the proclamation transmitted with His Excellency's memorandum of the 6th instant was prolonging the war, and closing the avenues of peace. Under these circumstances, considering the gravity of the accusation made by Her Majesty's Eepresentative, the Colonial Treasurer thinks there is no other course open to Ministers than to place

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PAPERS RELATIVE TO NATIVE AFFAIRS.