b.— m. sM

Enclosure 2 in No. 3 The Assistant Military Secretary to the Private Secretary. Sir, Head Quarters, Wellington, 30t-h March, 186fi. I have the honor, by direction of the Major-General Commanding,' to acknowledge the receipt of your letter of yesterday's date, enclosing the copy of a communication addressed to Commissary-General Jones, C.8., by the Honorable the Colonial Secretary, in which it is stated that the Government has recently received information to the effect that frauds on the Colony have been perpetrated by persons in the service of the Imperial Government. The Major-General requests that His Excellency the Governor may be pleased to cause him to be placed in possession of the information referred to, in order that the Major-General may institute the necessary enquiry into the matter, and this he is most anxious to do with as little delay as possible, for, i" consequence of the reduction of the Force in the Colony, many civilian clerks, issuers, etc., are being discharged, and the non-commissioned officers and men of the Commissariat Staff Corps are about to embark for England, of whom some may be required. I have, drc., G. W. Deax Pitt, Lieut.-Colonel. The Private Secretary, Government House, Wellington. A.M.S.

No .. Copy of a Despatch from Governor Sir George Grey, K. C. 8., to the Right Honorable the Earl of Carnarvon. (No. 37.) Government JT< use, Wellington. My Lord, — Oth April, 18C7. I have the honor at the request of my Responsible Advisers, to transmit for your information a copy of a correspondence between the Honorable Major Richardson, and Commissary General Jones, 0.8., who were appointed for the purpose of examining the accounts which relate to claims and counter-claims of the Imperial Government for Military Expenditure in New Zealand. From this correspondence your Lordship will learn that Commissary General Jones has decided upon quitting New Zealand for England upon Monday next, the Bth instant, leaving unfinished the enquiry, which was rapidly approaching completion, and upon which a large amount of labor and gome cost has been consequently uselessly expended. The Right Honorable the Earl of Carnarvon, I have, &c, &c, (fee, <tc. G. Grey.

Enclosure in No. 1. MEMORANDUM by Ma.TOR IIICHAItDSOX. Wellington, April Ctb. li.Gr. To His Excellency Sm G. Grey, Knight, Commander of tlie Most Honorable Order of the Bath, Governor and Commander-in-Chief of the Colony of New Zealand, and Vice Admiral of the same, <tc, &c. May it Please Your Excellency,— I have the honor to submit to your Excellency a copy of a correspondence which has taken place between Mr. Commissary General Jones, and myself in execution of the duties which Your Excellency was pleased to entrust to me, in conjunction with that officer. Your Excellency will learn from these documents that after having agreed on a certain plan of procedure, which in my opinion has worked well, considering the constant reference which was obliged to be made to Auckland by the Commissariat, Mr. Jones departs for England on Monday next, leaving the work, which was rapidly approaching completion, unfinished. His reasons for acting thus will be found in the correspondence, together with my counter objections. I received on the 4th instant a coniulete account of the Imperial claims against the Colony, amounting to .£1,304963 17s. Id., differing from that professedly incomplete account •-•endered in October, viz., .£444,429 2s. 4d. The Colonial counterclaim would in all probability have I.een presented complete this day, had not the Imperial Commissioner adopted the unusual and illegal course of charging compound interest, which has had the effect of arresting the Treasurer's interest account ]>eiiding consideration of the subject. An approximate account similar to that rendered by the Fmperial Commissioner, was rendered to me early in October, and forwiirded to Mr. Commissary General Jones on the 23rd January. It is a source of much regret to me that when by a persistence in a judicious course of examination we were rapidly approaching the termination of our duties, the Imperial Commissioner should have retired from the work. An accountant and clerk have been almost constantly at work thoroughly examining the Imperial Vouchers, under my general instructions, at which examination being merely accountant's work there was no need of my actual presence —this work is all but complete, but, by the departure of Mr. Jones, cannot be made available by the present Commissioners. I will do myself the honor, at an early date, of drawing up a progress report, and of soliciting your Excellency's further instructions. J. RIf'HARDSOK.

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OF THE IMPERIAL AND COLONIAL GOVERNMENTS.