Bi—No. 6.*

6

PAPERS RELATIVE TO THE IMPERIAL CLAIM

ment, which concurred in the plan, that, so far as " relates to military expenditure, Ministers will pay from Colonial funds all that is connected with militia and volunteers." This appears to have been accepted by the Legislature, and was embodied in the arrangement between the two Governments respecting the payment of £5 per head. 32. From this statement it is apparent that, anterior to January, 1862, the Colony agreed to pay for the militia and volunteers, under protest; but since that time the Colony has borne the entire expense under a mutual arrangement. It will then appear that, in provisionally admitting the liability of the Colony for the items which are charged against it to the close of 1861, I am only acting under the conviction that it could not be the intention of the Imperial Government to press for a payment of £74,807 16s. 2d., being the amount of pay and rations for that period, from a population of 99,021, whose ordinary revenue, charged with all the departments of Government, only amounted to £324,116, especially at a time when the settlers in the North Island were in a state of great distress and anxiety, but who, nevertheless, rallied to the call of the Queen's representative, even at a great sacrifice of life, time, and property, when questions connected with the continuance of Her Majesty's sovereignty over these islands, and the security of the European inhabitants were involved. 33. With respect to the Construction and Maintenance of Military Roads, for which there is a charge amounting to £35,694 4s. Bd., it may be said that, in order to the efficient conduct of military operations, it soon became evident that it was necessary that such roads should be immediately undertaken, and the construction pressed forward with the greatest vigor. These roads, although of a permanent character, and thus of benefit to the Colony, would not, under ordinary circumstances, have been undertaken by it for many years to come, by wliich time population would have multiplied, the rate of wages would have decreased, money might have been obtainable at rates less unfavorable, and the resources of the Colony would have become able to bear such additional demands upon them. It should further be remembered that the North Island, unlike the Middle Island which has a landed estate of some forty-five millions of acres, has not had a single acre beyond what the Governor could from time to time purchase from the Natives, and that, therefore, the inhabitants have not had the necessary means to make roads, except through the medium of the ordinary revenue, which, in each of the four Provinces constituting the Northern Island, was already most severely burthened. 34. On an application being made in 1862 for the services of the military in the construction of roads within the Province of New Plymouth, the request was granted by the General Commanding Her Majesty's forces, on condition that the troops so employed were to bo paid at the rate of nine-pence (9d.) per day, and that the roads " were to be constructed for the defence of the settlement, and with reference to future military operations." 35. In December, 1861, the attitude of the tribes on the Upper Waikato was so unmistakably hostile that your Excellency, in addressing General Cameron, recommended, in order to remove a state of things " which entirely crippled our operations," that the road from Auckland to Havelock " should, without delay, be constructed, and put in such a state that troops can move rapidly along it at all seasons of the year;" and your Excellency requested that the construction of this road "should be undertaken as a military work" by the troops under the General's command, leaving to Her Majesty's Government hereafter to determine from what source the working pay of the officers and men employed on this duty was to be refunded to the military chest. In reply to this communication, General Cameron states that 2,500 men will be immediately employed on the work referred to, and that the Commissariat Department will be instructed to keep a separate account of the working pay, additional expense of field allowance for the officers, transport for the supply of troops, conveyance of road material, the hire of building for stores, &c., &c, "in order that the amount may be charged against the Colony, should it be so decided." The Duke of Newcastle, on the 17th of May, 1862, expresses his approval of extending the road from Auckland to the Waikato River, but instructs your Excellency to give directions for the repayment to the military chest of the amount expended on this account. There apparently then remained no other resource to the Colonial Government but compliance under protest; and the Colonial Treasurer, on the 20th of October, 1862, desires it to be distinctly understood that Ministers " do not regard either the payment of the Militia expenses, the re-establishment of the Province of Taranaki, or roads constructed for strategical purposes, as fair «harges against the Colony," and that the question should be decided on the final adjustment of accounts between the Governments. 36. Under these circumstances, it is desirable that there should be a compromise, based on the considerations I have submitted, and I think that, as out of the sum of £35,694 4s. Bd., no less than £4,368 12s. 9d. was expended in felling timber adjacent to the road, with the view of preventing the convoys being surprised by the rebels, the Imperial Government is fairly chargeable with at least twothirds of the whole amount. I should, however, mention that there is a sum of £1593 18s. 4d., which I would have considered myself justified in inserting in the column headed "objected to," were it not that the information in my possession is net entirely conclusive on the subject. Nevertheless, I am of opinion that the following items may, upon further information, be found to be incorrectly entered in the Great South Road Account, viz.:—Overcharge of Field Allowance, £737 lis.; Fuel and Light issued to Mr. White, Interpreter (who was at this time, as I am informed, employed on other work), £8 19s. 9d.; Items unvouched, £88 os. 10d.; Working Pay of the Royal .Artillery, (which Mr. Jones states, in his Memo.of the 3rd January, 1862, "will remain chargeable to Army funds"), £245 10s. 3d.; and a charge of £512 Is. 6d. for special transport by the same corps. 37. The question of the erection of Block Houses and Military Posts for the safe conduct of military operations in the suppression of rebellion has, from time to time, been under the consideration of the Imperial and Colonial Governments. In December, 1861, your ExceUency, in noting the hostile and threatening attitude of the Upper Waikatos, recommended the erection of defensible works on the Waikato river; and on the 29th December, 1864, the Government, with reference to the military operations about to be commenced between Taranaki and Wanganui, pending the embarkation of the troops, agreed to bear the expense of such Block Houses at Wanganui and Taranaki as your Excellency and Colonel Warre might report to be necessary. It will, therefore, be evident that the claim for such defensive works in 1860 cannot be admitted. 38. With reference to the question of granting Extra Allowance to Her Majesty's Troops, the Duke ►of Newcastle instructed Governor Browne, on the 7th of March, 1861, to move the Legislature to make