The Sun.
London, England, 1862-09-13 00:00:00

are necessary from ►persons whose lives and pro-.
perty are in danger. Mr. Reader Wood states that
the annual revenue of the colony (independently of

the land revenue) is £272,000. He mentions that
£90,000 of that sum are paid to provincial govern-

meats, and he observes that the land fund is pro-
vincial revenue, and expended in colonisation and
public works. But it does not appear to occur to
him that the revenue itself might be increased
by the imposition of fresh taxation ; that the por-
tion of that revenue which is so applied as to relieve

municipalities from the necessity of imposing local
taxes might be applied in whole or in part to the

more pressing Lads of the colony, and that the

portion of that revenue which is devoted to public

works and colonisation may, in times of disaster,

particularly in time of civil war, which is disaster,
be diverted to the paramount object of averting
absolute ruin. No doubt, in steps like these, the

colonly would be making sacrifices. But this is
exactly what the British Government has a right
to expect from them. Those who are expending
half a million a year in the defence of the colonists

and their property (a very appreciable item among
those which fix on the British tax payer theeburden
of an income tax) are entitled to expect from these
colonists that, instead of having recourse to the
momentary relief of a loan, exhausted it would seem

almost before it was raised, they should by some
immediate, general, end lasting sacrifice of the kind
which I have indicated, give some pledge of their

readiness to take their share, as far as their means

will allow, in the defence of their country. And,
in connection with this subject, I cannot pass with-

out remark that passage in the colonial treasurer's
financial statement of 23d Suly, 1861,..in which he

characterises as "most unfairly charged against the
colony" demands properly made against the Colo-
nial Government by the commissariat, nor the very
strong animadversions made in the colonial legis-
lature on the conduct of the commissariat officer in
bringing forward these claims in the simple dis-
charge of his duty. Little, however, as lam satis-

fled with the contents of your despatches in these
respects, I am earnestly desirous to afford the colony

in a time of undoubted trial the utmost assistance
which can be given with any justice to this country.
I therefore proceed to communicate to you, as ex-
plicitly as is now possible, the decision of her Ma-
jesty's Government on the questions which you have
raised. lam ready to sanction the important step
you have taken in placing the management of the
natives under the control of the Assembly. Ido so
partly in reliance on your own capacity to perceive,
and your desire to do, what is best for those in whose
welfare I know you are so much interested. But I
do it also because I cannot disguise from myself
that the endeavour to keep the management
of the natives under the control of the home govern-
ment has failed. It can only be mischievous to re-
tain a shadow of responsibility when the beneficial
exeroise of power has become impossible. I cannot
hold out to you any hopes that a large military force
will for any length of time be kept in New Zealand.
It is for the colonists themselves to provide such a
military police force as will protect their outsettlers.
If it is not worth while to the colony to provide such
protection, it would seem to follow that is not worth
while to retain these outsettlements. You must
therefore expect, though not an immediate, yet a
speedy and considerable diminution of the force now
employed. I doubt whether, under present mili
tart' regulations, an officer can be detached from
his regiment to serve as commissioner in a native
district ; but in case this should prove practicable,
her Majesty's Government can only assent to such
an arrangement on the understanding that the
whole pay of the officer shall be defrayed by the
colony. I can hold out no prospect that this coun-
try will consent to bear any part of the expense of
the local militia and volunteers. All existing and
future liabilities on this score must be paid by the
colony. This sum appears to have amounted on the
29th of October last to £193,180. The agreement
lately entered into by the colonial government for the
contribution of £5 per man to the cost of the troops
stationed in the colony must also be fulfilled up to
the close of the year 1861. But, in consideration
of the present difficulties of the colony, and in com-
pliance with your advice, her Majesty's government
will be prepared, under the following conditions, to
reckon as military contribution all sums shown to
be expended in a manner approved by you on native
government, or other purely native objects, in ex-
cess of £26,000, which I understand to be the
amount now paid from the colonial revenue towards
these objects. The conditions subject to which I
am able to authorise this concession are the follow-
ing i--" 1. The amount furnished by the colonial
government shall not be less than £26,000, and that
furnished by the imperial government shall not ex-
ceed the amount of military contribution due from
the colonial to the imperial government, calculated
at the rate of £5 a head for every soldier em-
ployed. 2. No other imperial funds are to be
employed, nor any advances procured from the
treasury chest towards paying the expenses of the
scheme. 3. An account of these expenses must be
furnished to the Controller of the Treasury, Chest,
for the information of her Majesty's government
and of Parliament, showing the amount and appli-
cation of this imperial contribution. 4. The pre-
sent arrangement is to last for three years, that is
te oe say
m b
erf,rloBm64t,hwe
hlesnt Jitainsutaorybe hoped that the colonyo 1862, to the 31st De-
may be in a position to provide for the well-being
and government of the natives, so far as the insti-
tutions which you propose to introduce shall not
have been self-supporting, by means of local taxa-
tion, a result which you will keep steadily in view,
and the importance of which I cannot too earnestly
impress upon you. 5. In giving up for a limited
period the claim of this country to a portion of the
present military contribution, no pledge is to be
implied as to the continuance of that contribution
Ia permanent arrangement, but it is clearly to be
understood that the aid to be required from New
Zealand for military protection shall remain subject
to any general measure which parliament or her
Majesty's government
may adopt with regard to
the maintenance of imperial troops in the colonies.
You will not fail, I trust, to recognise in these con-
cessions the desire of her Majesty's government to
co-operate in a spirit of liberality and confidence
with yourself and the colony in the important and
hopeful attempt which you and your ministers are
now making to introduce such civilizing institu-
tions among the native tribes as may, under the
blessing of Providence, save both races of her Ma-
jesty's subjects in New Zealand from the miseries
of civil war, and the Imperial and colonial govern-
ments from the heavy burdens which it entails.—l
have, &c., (Signed) NEWCASTLE,
Governor Sir George
Grey, K.C.8., &e.