THE NEW ZEALAND GAZETTE. 285

their views upon forfeiture and military
settlement. They said they felt assured that
as this would be the first, so it would also be
the last occasion on which any Aboriginal in-
habitant of New Zealand would be deprived
of land against his will.

I trust that on their part there will be no
unwillingness to co-operate with you in con-
fining the measures of severity to which it
may be necessary to have recourse, within
those just and moderate limits to which I
have referred.

I now turn to the Act which authorizes
a Loan of £3,000,000, for which it is de-
sired to obtain the guarantee of the British
Parliament. I observe that of the total sum
which it is proposed to raise, £1,000,000 is
allotted to the expenses of the War,
£200,000 to the repayment of a debt to the
Imperial Government which has probably
doubled since that time, £200,000 to the
compensation of the Taranaki settlers, and
the rest in the main in the settlement of the
country. The bulk of it appears to be appro-
priated to the plan of Military Settlement to
which I have already adverted.

Her Majesty's Government recognise as
exceptional the expenses occasioned to the
Colony by the native war. And they are
not unwilling to entertain the question of
extending the guarantee of £500,000, which
they have already conditionally promised to
submit to Parliament, to such a further sum
as will cover the increased debt of the Colony
to the Imperial Exchequer, and so much of
these Military expenses, including £200,000
for compensation to the Taranaki settlers, as
may properly be defrayed not out of the
current revenue of the Colony, but by loan.

But the same reasons do not, in their
judgment, apply to the settlement of the
country, which, whether successful or not as
a measure of defence, is mainly a matter of
Colonial interest, inasmuch as its success is
calculated to add to the wealth and population
of the Colony. To a purpose of this kind
the Imperial credit is not generally applicable;
and Her Majesty's Government do not con-
sider that the land which it is proposed to
acquire under the Settlement Act is of any
such definite value as materially to add to the
security on which the guarantee of Parlia-
ment could be given. The omission of this
sum will reduce the whole loan within much
narrower limits, and I will consider
and write you on a future occasion
how far the revenue of New Zealand
pledged by the terms of the Act,
and the considerations to which I have
referred may justify Her Majesty's
Government in increasing the proposal they
have already promised to make to Parlia-
ment. Under any circumstances, the sum
will doubtless appear to Parliament larger
than it has hitherto been usual to
guarantee to a Colony of the size and
resources of New Zealand, and could only be
proposed by the Government with any pros-
pect of success in connexion with the peculiar
circumstances of the present loan, and in the
well-founded hope of a final pacification and
settlement.

I must now call your attention to the
importance of reducing as rapidly as possible,
after the conclusion of the troubles, the large
force now maintained in New Zealand, and I
confidently expect to receive from you such
information as may enable me to communicate
to the Secretary of State for War the possi-
bility of a great reduction in the number of
men, and consequently in the Estimate for
the year 1865-6. I must also remind you
that for the great expense which this country
has already incurred in putting down the
present insurrection, the Home Government
only calls upon the Colony for that almost
nominal contribution which it has already
engaged to pay.

The arrangement at present in force re-
specting the amount of the military contribu-
tion, and the proportion of it which is to be
returned to the Colony, to be employed for
the benefit of the natives, will terminate with
the close of the present year. In consenting
to guarantee a large loan for the Colony, the
Imperial Government will feel it necessary to
require that if at the close of that period the
Colony should continue to require assistance
of the mother country, a much more adequate
contribution shall be made to the Imperial
Exchequer. I am, however, unable at this
moment to convey to you any definite deci-
sion on this part of the subject. It is under
the consideration of the Government, and I
shall take an early opportunity of addressing
you again upon it.

I conclude by expressing an earnest hope
that the operation in which General Cameron
has been engaged may already have terminated
the war; and shall rejoice when I am able to
congratulate you on having succeeded by the
wisdom of your own measures and those of
your Government, by the skill of that dis-
tinguished Commander, and by the valour of
the Queen's troops and seamen and of the
Colonial Forces engaged in the conflict, in
restoring the blessings of order and good go-
vernment to the country entrusted to your
care.

I have, &c.,
EDWARD CARDWELL.

His Excellency Sir G. Grey, K.C.B.

Southland Representation Ordinance, 1864,
Assented to.

Colonial Secretary's Office,
Auckland, 18th June, 1864.

THE following Bill, passed by the Provin-
cial Council of the Province of South-
land, intituled
"Representation Ordinance, 1864,"
which Bill was reserved for the signification
of the Governor's pleasure thereon, having
been laid before the Governor, His Excel-
lency has been pleased to Assent to the
same.

WILLIAM FOX.

Printed and published by ROBERT J. CREIGHTON and ALFRED SCALES, for the New Zealand Government,
at the Printing Office, O'Connell-street.