B.—No. 5.

I regret that you should have delayed for a Memorandum to be sent so shortly before your embarkation, what may be considered as a reflection on the way in which I have discharged my duty. If your Memorandum were read, as you had penned it, it would probably mislead the Imperial authorities. I am, therefore, sure you will be glad that I should remind you that your incomplete account was put by me into my accountant's hands in October last, in accordance with our plan, so that he might "go minutely into the examination of the several items," as desired by the Imperial Treasury, and that having done this, I took the necessary books down to the South for that careful investigation into the history of the past, and past negociations and correspondence, which was essentially necessary to enable me to report to His Excellency in such a manner as would meet Mr. Cardvvell's desire that " some definite agreement might be arrived at as to the precise liabilities incurred by the Colony." You, as Imperial Commissioner, on the contrary, were presenting your own accounts as Commitsariat Officer, of the justness of which you could have no question, and of nearly every item of which you had a thorough knowledge from having been engaged on them for some past years. I may also remind you that I was in regular postal and telegraphic communication with the Treasury and my accountant. You, at this time, were, for a short, period, in the Middle Island, on the full understanding with me that the accountant's work would take some time, which I may say arose, in no small measure, from the delay which occurred in sending to Auckland for vouchers and other documents, which the Commissariat had to procure. When I was on duty with His Excellency in the Middle Island, I was still within telegraphic reach and was expecting and prepared to be relieved, if the accountant's work was ready, at any moment. You, I believe, visited Auckland twice during this interval, which was beyond the reach of telegraphic communication with myself. Ido not specify the period of your stay on each occasion, as you have deemed it expedient to do in my case. The duty I had undertaken was being performed by me, in the exact mode we had agreed upon, and my actual personal presence was not constantly necessary during the preliminary examination. I gather from a portion of your remarks that you deemed an intimation of your intention to embark for England on a certain date a sufficient direction to me to conclude my duty by that time. I take a different view of the case, and am of opinion that, when a question concerning more than a million and a-half of money is under examination the greatest circumspection is necessary. This opinion I communicated to you in my Memorandum of the 4th of October, when I wrote "that it is but justice to the trust confided to me that I should not act hastily nor unadvisedly." There is one more important point I must beg leave to notice. In endeavouring to refute the arguments I adduced in former Memoranda in favor of the system we deliberately adopted, in which I referred to vouchers in support of the Imperial claim being removed to England, while those in support of the counter claim were remaining in New Zealand, you wrote on the 4th of April, " they," referring to the vouchers, "will be sent to Auckland to remain there, and can always be referred to hereafter by communicating with the senior Commissariat Officer," but you now write in your Memorandum under reply, " I am not aware of ever having stated that the vouchers would remain in Auckland after the whole of the Imperial troops leave the Colony." I thought you were well acquainted with the intention of the General Commanding the Forces to remove all the troops from New Zealand, in compliance with instructions from home. I inferred this from knowing that you were in communication with General Chute when he was here a few days ago. As such removal is intended, and as you state " that the vouchers will be removed with the last Commissariat books and papers," I am sure that you will readily admit the wisdom of the system we adopted when we entered on our investigation, and will do me the justice to acknowledge that the pertinacity with which I adhered to the system has been justified by the result. J. Richardson, Colonial Commissioner.

Sub-Enclosure 3 to Enclosure in No. 9. Memorandum by Commissary-General Jones, C.B. Bth April, 1867. To the Honorable Major Eiciiardson, — I have just (10 a.m.) received your Memorandum dated yesterday, in reply to mine of 6th instant. As I embark almost immediately, it is impossible that I can reply to the several points alluded to by you. I consider it right to correct you in one particular.. I have been but once in Auckland since September last, and that visit was expressly in crnnection with the claims against the Colony : it extended over a period of eleven days, including passage there and back. This visit was made during your absence in the South. H. Stanley Jones, Commissary-General. P.S.—My visit in the South was during the period of the first three months which you demanded aa necessary to prepare the Colonial accounts, when I was waiting with actually nothing to do connected with this duty.—H. S. J.

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OF THE IMPEEIAL AND COLONIAL GOVERNMENTS.