Enclosure 2.
Memorandum by the Assistant Native Secretary.

With reference to the subject of your Excellency's memorandum of the 30th ultimo, I, have the honour to state briefly my opinion, that it is highly desirable that some of the principal Native chiefs should assist the Executive Government with their advice in the conduct of Native affairs; and that such an arrangement, if made with the general concurrence of the Native people, would materially tend to secure their confidence, in the Government. At the same time I feel bound to express to your Excellency my conviction that the present time is not the most opportune for initiating the new system. I fear that, until the establishment of more cordial relations between the Government and, the Native race generally, the acceptance by any Native chief of such an appointment as is proposed, involving removal from among his own people would place him in an invidious position, and that by identifying him with the Government under present circumstances it would tend to impair the influence which he might otherwise exercise.

As a means towards bringing the present war to a termination, I see no ground for anticipating any good result from, an immediate carrying-out of the proposed arrangement. The selection must necessarily be restricted to those chiefs whose sympathies or professions are unequivocally on the side of the Government, and who by the declaration of their sentiments have rendered themselves more or less obnoxious to many of their countrymen. Such men would probably render better service to the Government by remaining among their own people. As a prominent feature in a new system to be introduced when peace is restored, the proposed arrangement is calculated to produce the best results'; but, while so large a portion of the Native population is either disaffected or wavering, I should hesitate to recommend its initiation.

I am also of opinion that the concurrence of the Natives in any new plans for their government is essential. To secure this, such plans should in the first place be suggested as matter for consideration, 'rather, than announced as the determination of the Government arrived at without consulting the wishes of the people for whose benefit they are designed. The Native Conference would afford an opportunity for bringing forward the subject, and I have little doubt that a proposal such as that contained in your Excellency's memorandum would there meet with general approval.

As the selection of men would be a matter of some delicacy, it might be well to invite the Conference to prepare a list of chiefs of standing and intelligence, and enjoying the confidence of their respective tribes, to be submitted to the Governor. From such a list a certain number might be selected and appointed councilors to hold office for a limited period, at the expiration of which another selection should be made, and from time to time repeated, so that all might hold office in turn. With these I would propose to associate a few of the principal chiefs to be selected by the Governor, whose appointments should be considered permanent during good behaviour. A Council of twelve chiefs might be thus constituted', who should be consulted by the Executive Government in all matters pertaining to the administration of Native affairs. As it would be desirable that the members of such a Council should reside principally at the seat of Government, suitable accommodation should be provided for them, and they should receive salaries sufficient to enable them to maintain a position in society befitting their rank and office It would be undesirable to initiate the proposed plan unless a guarantee for its permanency can be secured.

As-respects the precise number or mode of selecting the Native Councillors, no strict rule need be laid down: these and" similar matters of detail might be made the subject of deliberation in the Native Conference.

In the introduction of the proposed system, I submit; as important points; first, that the expressed wishes of the Natives themselves should be made the basis of all action on the part of the Government; page 68and, secondly, that the Governor should exercise an independent discretion in the selection of not less than one-half of the members of the proposed Council to hold permanent appointments.