ZEALAND TO THE SECRETARY OF STATE.

79

A.—No la.

amongst the most loyal of those under her extended sway; her troops never sustained the slightest repulse, even of a moment's duration; then confidence was never for an instant shaken so that it became doubtful if they would follow their officers; no debt incurred in military expenditure was ever entailed upon a Colony where I was. 6. It is true that differences have arisen between two Officers Commanding the Eorces in New Zealand since 1863; but it should be remembered that although there have been two Generals here in that time, there has only been the same military staff in this country. This is an important point. 7. My differences with these Generals arose in part from powers which belonged to me having been assumed by the Military Authorities under the sanction of the War Department; and. from my efforts to get an end put to a system which led to an expenditure of life, money, and resources, which, when measured by the insignificance of the enemy and of the results obtained, is, I believe, unparalleled in our history; which led to disastrous repulses, to a wavering in the confidence of our men, to the spread of rebellion, the ruin of parts of the country, the contraction of an enormous public debt upon military objects which will cripple the resources of New Zealand for many years, and to other evils not less serious than those I have named. 8. At last, amidst all difficulties, and notwithstanding the frequent attacks made upon me by the Military Authorities and the support which has invariably been given to them from home, I have had the happiness of seeing a sounder system again established, and of witnessing the first-fruits of its success; and I can bear with tranquility all the odium to which I have been subjected, especially as I feel sure that an impartial examination of the correspondence which has passed will show that I have, throughout, preserved the equanimity of my temper, and that I have been, in all instances, the assailed party; and that no man who had the interests of the Empire at heart could have refrained from feeling deeply grieved at the misfortunes, the useless waste of life, of money, of resources, which I was obliged to witness, or from doing his utmost, at all risks to himself, to have a wiser and sounder mode of proceeding established. I have, &c, The Right Hon. the Earl of Carnarvon. G. GREY.

No. 31. Copy of a DESPATCH from Governor Sir George Grey, K.C.8., to the Right Hon. the Earl of Carnarvon. Government House, Auckland, My Lord,— 31st May, 1867. I have the honor to transmit a Memorandum of my Responsible Advisers, in which is enclosed a copy of a Resolution passed by the House of Representatives during the last Session of the General Assembly, on the subject of the establishment of Vice-Admiralty Courts in the several Provinces of New Zealand; and in which they state that they believe there is a pressing necessity for the establishment of such Courts in (lifferent places, arising from the great distances of the most important ports from each other, and the comparatively unfrequent communication between some ports of the Colony. I have, &c., The Right Hon. the Earl of Carnarvon. G. GREY.

Enclosure in No. 31. Memorandum by Mr. Stafford. Ministers have had under their consideration the following Besolution passed by the House of Bepresentatives during the last Session of the General Assembly. Ministers request that a copy of this Besolution be forwarded to the Secretary of State for the Colonies. Ministers believe that there is a pressing necessity for the establishment of Vice-Admiralty Courts in different places arising from the great distances of the most important ports from each other, and the comparatively unfrequent communication between some ports of the Colony. Ministers enclose a copy of a report by the Attorney-General of New Zealand, from which will