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partially occupying themselves, and which had been granted through the Native Land Court to members of their tribe, who were not in occupation of any part of it, and who drew rents for the depasturage of stock on it. A supposed private wrong led Purukutu to uphold what he considered to be Tawhiao's so-called law against the alienation of land by lease or sale. This is the political, or public reason for his act. Manuhiri, in a conversation with Paora Tuhaere, at Tokangamutu, on the 11th May last, distinctly states —" It is said that Tawhiao was the cause of Purukutu's act. Purukutu committed murder for his own land. Another man kills a European for his own land." It may be asked if Sullivan was not killed in consequence of instructions from the King; how is it that he has now found an asylum at Tokangamutu ? In my opinion, Purukutu went unwillingly to Tokangamutu, as numerous messengers were despatched to him before he would comply with Tawhiao's request. I believe he was sent for to keep him from doing further mischief, and to prevent him from precipitating a war with the Europeans, when the Hauhau party were not ready to fight. Manuhiri, in a recent conversation with Nini Kukutai, at Tokangamutu, said —" Purukutu will not be allowed to return to Maungatautari. If he goes, it will be on his own responsibility, and not on Tawhiao's, because Tawhiao does not want to fight." Tawhiao knows that if he delivers Purukutu over to the Europeans, a large number of his people will immediately secede from him, and his power and influence become a thing of the past. The Natives are all aware that Mohi Hotuhotu Purukutu is, according to Maori custom, one of the owners of the Pukekura block ; that the issue of the Crown Grant, and subsequent leasing and occupation of the land by Mr. Walker, has helped to deprive him of his rights ; that Tawhiao, and his Eunanga laid down what they consider to be a law, forbidding the sale or lease of lands outside the confiscated boundary, for which death was to be inflicted on any European concerned, or any Kupapa (friendly) Native. It is true Tawhiao had subsequently said, " That tho sword should be sheathed." Purukutu did not recognize that this repealed the penal clause of the first so-called law, and by a mis-interpretation he killed Sullivan. It is my firm conviction that, as seen from the Hauhau point of view, the above are the reasons why Purukutu is not handed over to be tried by the law in answer to the demands made by the Government. I wish it most distinctly to be understood that the above remarks are not my ideas of what is right or wrong in the matter, but merely an exposition of the feelings of the Hauhau party arrived at by me after much observation and reflection. I paid two visits to Te Waotu to the Ngatiraukawa Tribe, and also had an interview with Eewi Maniapoto at Te Kopua. I believe I can safely say that the Ngatimaniapoto and Ngatiraukawa Tribes will not join in any hostile movement against the Europeans arising out of Purukutu's proceedings. In considering the question of the defence of this district, it must always be borne in mind that the AVaikato and Ngatihaua Tribes have no land of their own at Tokangamatu, and that some subdivisions (hapus) of Waikato lost the whole of their lands by confiscation. These are the men who smart under the feeling that they are mere sojourners on the lands of Eewi and Ngatimaniapoto, and it is against them that the Government of the country must at all times be upon their guard, and keep the frontier in good defensive order, or there will be numerous repetitions of acts similar to that of Mohi Hotuhotu Purukutu. The alarm and excitement which at first prevailed in the AVaikato amongst the frontier settlers after the murder of the unfortunate Timothy Sullivan has subsided, and they are now quietly following their usual avocations with a feeling of security not before experienced in this district. It is, however, a very prevalent opinion in their minds that the murderers of Timothy Sullivan should be brought to justice, which they consider would prevent the recurrence of similar outrages. I do not think it would bo right to close this report without drawing the attention of the Government to the very cordial manner in which I have been assisted in my duties in this district by the whole of the officers of the Government: and I would point out that Mr. Eeynolds, Telegraphist and Postmaster at Cambridge, and Mr. Eayner, who holds a similar office at Ngaruawahia, are two most efficient and deserving officers, and have shown a large amount of zeal for the public service during a period when their duties have been very arduous. Mounted Constable Collins, who acts as my orderly, appears to be a man worthy of promotion, and he has accompanied me to some Native settlements, where there was risk, and has invariably conducted himself in a praiseworthy and efficient manner. A Native lad named Pari, of the Ngatihaua Tribe, has been a very trustworthy messenger and collector of information ; and on one occasion, when I sent very important letters by him to Wharepapa, ho was captured by Purukutu, tied up, and would have been killed but for the intercession of some of his relations; he however contrived to retain the letters and procure the information required. I enclose herewith a rough sketch showing the position of the posts on the frontier, the patrol road as surveyed, and the line of telegraph now in course of construction. I hope the sketch may be useful in explaining certain portions of this report. I have, &c, The Hon. the Native Minister, James Mackay, Jun., Wellington. Agent General Government, Waikato.