B.—No, 5,

Sub-Enclosure 1 to Enclosure in No. 4. Memorandum by Major Richardson. Wellington, 2nd October, 1866. To Commissary General Jones, C.B., — Having made enquiry of the Colonial Treasurer as to the probable time at which I might hope to receive a statement of the claims preferred by the Government of the Colony against the Imperial Government—duly supported by the production of copies of authority for such claims, and Vouchers—-I have to state that I am informed that the account may be furnished in about three months. As the Treasury minutes of Mr. Hamilton, of the 24th March last, instructs you " to go minutely into the several items comprehended" in the accounts, and, as my instructions, as communicated in my commission, a copy of which I enclose, are equally comprehensive, I think that too much care cannot be taken in preparing the respective claims and counter-claims, if, as may be hoped, it is expected that the reports to be made on this long outstanding question may lead to a final and satisfactory adjustment. I shall be glad to learn when the entire claims of the Imperial Government against the Colony, supported by authorities and Vouchers, will be ready for examination. J. Richardson, Commissioner for Colonial Government.

Sub-Enclosure 2 to Enclosure in No. 4. Memorandum by Commissary General Jones, C. B. <(No. 19.) Wellington, New Zealand, 4th October, 1866. In acknowledging the receipt yesterday of your Memo, of the 2nd instant, I cannot refrain from submitting the following remarks for your consideration; and in doing so I beg to disclaim the remotest desire to press forward the duty imposed upon us by the two Governments, in any way that may be considered as tending to the prejudice of the Colony. Indeed my great desire is to approach the task before us with deliberation and impartiality, having solely in view a final settlement of those long outstanding claims satisfactorily to both Governments. Having thus expressed my views and desires I trust I shall not be misunderstood in what I now proceed to record. By the Parliamentary papers you were kind enough to send to me, I find that a copy of the Treasury letter to myself of the 24th March, directing this enquiry, was received by His Excellency the Governor, in Wellington, on the 23rd May last, and that so far back as the 10th April last, a statement was prepared by the Colony of the Colonial claims against the Imperial Government, amounting to .£405,146 11s. On the 11th August last, when I was informed that His Excellency had appointed Dr. Knight for the duty you have now been commissioned to perform, I wrote to him suggesting that an account of Colonial claims should be then prepared in order to expedite the work. From all these circumstances I am led to the hope that the three months you allude to as necessary to prepare the Colonial accounts have by this time nearly expired, and that a short period will now suffice to bring them into a sufficiently advanced state for us to take them into consideration. In the meantime I would recommend that the Imperial claim should be at once considered. These claims are complete with the exception of the three or four items, the information connected with which I hope to receive before the discussion upon the other items is concluded, when they can be considered and placed in their proper place in the account which it will be our duty to prepare. Referring to the concluding paragraph of your Memo, it seems to me that we are not altogether in accord upon one point in the nature of the duty before us; you appear to expect that complete accounts of all claims by both Governments supported by authorities and Vouchers will be submitted for examination. But I think you will gather from a reference to the various Treasury letters, published in the Parliamentary Papers you sent me, that the complete statement of these accounts is to be prepared by ourselves, and I am now ready to proceed at once to discuss the several claims and prepare tbe statement in question. In the copy of your Commission, signed by His Excellency the Governor, several letters between the Imperial Government and His Excellency are referred to on subjects relating to these claims, and I am quite prepared to consider them in so far as they relate exclusively to accounts. But as it appears by the copy of your Commission that you are required to go " into such other accounts as may by you be considered to arise between these Governments out of the Native Disturbances," and as portions of the correspondence to which you are specially referred relate to matters beyond mere accounts, and virtually calling in question the Military proceedings and policy of the General Officer Commanding Her Majesty's Troops during the period of active service in the field, you will I trust concur with me that it is neither expedient nor possible for me to discuss them with you. Before proceeding further, it would be well that this point be clearly understood, and I hope it may j>rove that there exists no reason for sujsposing that it is intended to import into our proceedings any such exteaneous subjects as those I have referred to. I would again guard against the idea oi my being actuated by any motive other than a conscientious discharge of the duty entrusted to me, and I consider that I shall best discharge that duty by uniting with you in a mutual and cordial effort to bring the respective claims to an. amicable adjustment. As, however, my detention and duty now in this Colony are solely for the adjustment of these accounts, I can entertain no doubt that I shall be held to have failed seriously in my duty were I not in a position to show that I have exhausted every means in my power to avoid any delay- that may not be absolutely necessary. The Hon. Major Richardson, H. Stanley Jones, &c, &c, &c. Commissary General.

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PAPERS RELATIVE TO CLAIMS AND COUNTER-CLAIMS