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A.—No. Ib.

AND THE GOVERNOR OE NEW ZEALAND.

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transmitted to your Excellency on the 30th of the same month, I have now the honor to acquaint you that it is my intention to take measures, in concert with the Senior Naval Officer, for the removal of the 2-18 th Eegiment from New Zealand, according to my " original instructions." With this view orders have been issued for their immediate concentration at Auckland prior to distribution amongst the Australian Colonies. I have, &c, His Excellency Sir G. E. Bowen, G.C.M.G., T. Chute, Major-General. Governor of New Zealand.

Enclosure 2 in No. 4. Governor Sir G. E. Bowen to Major-General Sir Trevoe Chute. Government House, Wellington, Sir, —■ New Zealand, 30th June, 1869. I havo the honor to acknowledge the receipt, yesterday, of your letter of the 17th instant, enclosing a copy of a letter from the War Office, directing the transfer of the 2-18 th Eegiment from New Zealand to Australia. In reply to Despatches in which I had pointed out (as you also did in your letter to the War Office of 12th October ultimo) that the entire removal of the regular troops might probably lead to more extensive risings of the rebel Maoris, I had been already informed by the Secretary of State for the Colonies that this was the final decision of the Imperial Authorities. The execution of it is left to yourself and to the Senior Naval Officer, and no action on my part appears to be required. It is, therefore, unnecessary for mo to repeat what I have said to you on former occasions, namely, that you will always find mo ready to assist, so far as I can, in carrying out the instructions of Her Majesty's Government. I have, &c, Major-General Sir T. Chute, K.C.B. G. F. Bowen.

Enclosure 3 in No. 4. Memorandum by Mr. Fox. Wellington, 6th July, 1869. Ministers beg to thank His Excellency for communicating to them the letter received by him from General Sir T. Chute, informing him that orders have been issued by that officer directing that the detachments of Her Majesty's 18th Regiment, now distributed at several centres of population in New Zealand, shall be immediately massed at Auckland for the purpose of their removal, without delay, from the Colony. Ministers have received this information with the deepest regret. The Colony is in a condition of imminent peril, and it is the duty of Ministers to advise His Excellency that the removal of the troops may result in very serious disasters in the North Island, and that the lives of many of Her Majesty's subjects may be sacrificed. Tho successes, if such they may be called, obtained during the last few months, have been partial and local, and have been gained over the rebels who represented comparatively small sections of tho disaffected Maori community. The King party and the tribes under its influence have hitherto, except / so far as individuals are concerned, held aloof from the struggle. The progress of operations conducted by the late Government has, however, been in the direction of the King country, and at the time of the present Ministry taking office, a week ago, had actually reached its verge. The result is a very excited state amongst that section of the Native population, and reported threats on their part. The rebel chiefs who are engaged in open hostilities are understood at this moment to be personally urging on | the King and his immediate adherents tho expediency of joining them. The pecuniary resources of the Colony are quite inadequate to continuing the struggle at the present rate of expenditure, and the immediate reduction of the local forces appears inevitable. Including the provision which the Assembly is about making for meeting the liabilities which will have to be satisfied during the next few weeks, the floating local debt of the Colony in short-dated obligations will amount to nearly half a million, besides the loan liabilities. Clearly an expenditure in excess of revenue in reliance upon local loans cannot be continued. Still, if no new phase of the question arises, the Colony hopes to hold its own, until its position can be again laid fully before the Imperial Government, unless, by the removal of the troops, fresh encouragement is given to tho rebels to commit acts of aggression. The Natives are known to have been anxiously watching the action of the Imperial Government in reference to the removal of troops. So long as a single regiment remains, they are impressed with the belief that the Queen has not abandoned the Colony. But they have often said, " Wait till the tide is out," meaning till the last soldier leaves the Colony. When that event takes place, a direct encouragement will be given to rebel Natives to commit further acts of hostility; the loyal Natives will be greatly disheartened, and an impression will be produced amongst all classes of Natives that they may < choose their own time for involving the Colony in a war of races. A force far larger than was ever contemplated by those who projected the system of self-reliance has been employed during the past year, at a cost which the Colony is utterly unable to continue ; while the results have been only partial local successes, to a greater extent counterbalanced by reverses. The prospect of peace, in the opinion of Ministers, materially depends on the retention of a small body of Imperial troops in the Colony, as an assurance to the hesitating King party that the Colony is not finally and absolutely deserted by the Imperial Government. Ministers deem it their duty to represent to His Excellency these very grave circumstances, so full of peril to the lives of Her Majesty's subjects in this Colony, and to express their earnest trust

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