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2. I have to request that you will inform Sir George Grey tbat his letter has been duly received by the Prime Minister, who has communicated it to me to be considered and answered. 3. The story to which Sir George Grey's attention has been drawn appeared in the Marcli number of " Macmillan's Magazine," and on referring to the article I find that the charge against Sir Theophilus Shepstone is merely part of a resume of political events as they appeared to the narrator (who is a native printer), and is not stated to have been derived by him from the Zulu King. The story is, in my judgment, wholly incredible, because Sir Theophilus Shepstone could bave had no expectation of any conflict with the Boers, as he was, in fact, advancing into their country on a friendly mission, with an escort of no more than twenty-five policemen. So far from inciting the Zulu King to attack the Boers, tbe Natal authorities, including Sir H. Bulwer and Sir Theophilus Shepstone, had for some time previous strenuously and successfully exerted themselves to prevent Ketchwayo from invading the Transvaal. 4. In communicating these remarks to Sir George Grey you will suggest to him in courteous terms that, while Her Majesty's Government will at all times pay attention to any representations which he may desire to bring before them, they will be obliged by his transmitting them in tbe usual way to the Secretary of State for the Colonies, through the Governor of his colony. I have, &c, M. E. HICKS BEACH. Governor the Most Hon. the Marquis of Normanby, G.C.M.G., &c.

Enclosure in No. 8. Sir George Grey to the Earl of Beaconseield. My Lord, — Wellington, New Zealand, 4th June, 1878. On the 12th April last I sent to you a telegram regarding a line of policy stated to have been pursued in South Africa in the name and under the authority of the Queen of England : I now propose to state in detail the circumstances to which 1 alluded in that telegram. 2. I feel sure that your Lordship will thank me for thus affording an opportunity to the British Government of putting on record a denial that it either contemplated or authorized arrangements stated to have been made in South Africa which might have resulted in what I believe would have been a great national calamity. 3. For your Lordship's convenience I have annexed, as an enclosure to this despatch, a copy of an extract from a paper written by a Zulu Kaffir for the Bishop of Natal, detailing a visit which he paid to Ketchwayo, the King of the Zulu nation. 4. An important part of this statement is : "I wish to tell you that all the Zulus across the Tugela (refugees in Natal) wish to return here to-day, being oppressed with trouble coming from the black men having to pay much money to the Government and the white landowners. A little while ago Somtseu (Sir T. Shepstone), son of Sonzica (Mr. Shepstone, a missionary), sent a message to Ketchwayo to say that he was going to set the Boers to rights, and that Ketchwayo must collect an armed force to assist him in case anything should happen from the Boers fighting with him. So Ketchwayo mustered the whole tribe of the Aba-Zulus, which live to the north, and said they were to stay assembled at Somtseu''s word, and to attend to Somtseu's word, and in case the Boers should fight with him, then the Aba-Zulus were to render help and go at once to assist Somtseu. Ketchwayo did all that, wishing to obey the commands of the Queen, though he did not want to do it, since no occasion had arisen for his fighting with the Boers, as they had not attacked him • but from what I saw at Maizekauye he is well prepared with ammunition, &c., in case any one should attack him. Well, so the Aba-Zulus stayed on in full force until Kaitshama came, sent by Somtseu to say that all was right—there was no fighting among the Boers • and then the Aba-Zulus dispersed to their homes." 5. It consequently appears, if the above statement is true, that the arrangement made was as follows : That if the Boers resisted the annexation of the Transvaal to the British Empire, and any fighting took place, a large portion of the Zulu nation were to fight against the Boers for the purpose of assisting the British Government in the contest, although the Zulu King stated that they had no cause of war against the Boers, and had suffered no wrong from them. 6. It is calculated that the fighting force of the Zulu King is about 50,000 fighting warriors, .-all of them barbarians, and brought up under a system which accustoms them to witness constantly ihe performance of atrocious actions.