MILITARY FORCES OF NEW ZEALAND. ANNUAL REPORT OF THE CHIEF OF THE GENERAL STAFF.

Appendix to the Journals of the House of Representatives, 1940 Session I, H-19

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1940. NEW ZEALAND.

MILITARY FORCES OF NEW ZEALAND. ANNUAL REPORT OF THE CHIEF OF THE GENERAL STAFF.

Presented to both Houses of the General Assembly by Command of His Excellency.

REPORT. Wellington, 15th June, 1940. The Hon. the Minister op Defence. Sir, — I have the honour to submit the following report on the New Zealand Military Forces for the period Ist June, 1939, to 31st May, 1940. GENERAL REMARKS. The past year has been one of intense activity. At the commencement of the year the Territorial Force was in the process of reorganization from a cadre to a peace establishment within reasonable reach of its war establishment. This involved an increase of 6,000 all ranks. The staff to deal with these extra numbers was in the process of expansion. The National Military Reserve was in process of formation. Plans for home defence were being revised and completed. Shortly after the outbreak of war on 3rd September the Government decided to raise a special force of one division and ancillary troops for service overseas or for home defence. This necessitated not only a continuance of the added activities mentioned above, but also the task of raising, training, accommodating, and equipping this force, as well as the extra stalf necessitated by this rapid expansion. The results achieved can be regarded as very satisfactory. I wish to thank the other armed services and those Government Departments which have assisted the Army in the war effort. Without exception appeals for help have been answered with the utmost promptitude, efficiency, and cordiality. IMMEDIATE MEASURES ON THE OUTBREAK OF WAR. Manning Coast Defences. Immediately on the outbreak of war measures were taken to man coast artillery and anti-aircraft defences at the three defended ports of Auckland, Wellington, and Lyttelton. The units concerned were brought up to war strength by embodiment of those already serving, and the enlistment and training of the number required for this purpose. This manning was carried out with the most satisfactory despatch. The establishment has been maintained in spite of a continual turnover of men released to join the Expeditionary Force. In this respect the Special Reservists who were trained over the twelve months prior to the outbreak of war proved most valuable and fully justified the money expended on their training in peace. Coast-watching Stations. All coast-watching stations allowed for in our mobilization plans were established within a few days of the outbreak of war. The personnel for these stations are found by the Navy, the Army, and the Marine Department, and in some cases by Harbour Boards. Over some portions of the coast-line aerial reconnaissance is provided at regular intervals. The position is under frequent review by the appropriate committee of the Organization for National Security.

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Guards on Vital Points. In accordance with war plans, all guards on vital points were provided by Army personnel. These points included Army, Navy, and Air Force establishments, civilian explosives magazines, bulk oil installations, and important cable and wireless stations and vital points connected with the railway system. The actual points guarded, as well as the scale on which guards should be maintained, are under constant review by the appropriate committee of the Organization for National Security. The personnel required from the Army for coast-watching stations, and guards for vital points, are found from the National Military Reserve, Class 11, and, if for no other reason, the formation of this reserve prior to the outbreak of war was fully justified. These men have carried out a monotonous and, in many cases, a lonely task with commendable application. RAISING AND TRAINING SECOND NEW ZEALAND EXPEDITIONARY FORCE. General. Within a few days of the outbreak of war the Government decided to raise a special force for service within or outside New Zealand, as circumstances might dictate. The first echelon of this force entered camp at the beginning of November, after one month's prior training of the officers and N.C.O.s concerned. It consisted of approximately one-third of a division at British war establishments, with the addition of certain non-divisional troops, notably a machine-gun battalion and the bulk of a Reserve M.T. Company. When this echelon entered camp it was not definitely known whether it would proceed overseas. It was therefore decided that training should be pushed on as rapidly as possible in order that the force might be in the best shape in the shortest possible time for employment as circumstances might dictate. As soon as it was definitely known that the force was to proceed overseas the syllabus of training was reconsidered, and on assurance being given that all troops on arrival overseas would be granted an opportunity of carrying out further training before being employed in active operations it was decided that the training in New Zealand should aim at the following objects :— (a) To produce soldiers confident in their individual weapons and capable of taking part in further individual and collective training ; (b) To afford specialists a grounding in their specialist subjects so that they would be capable of taking advantage of more advanced training. The training of subsequent drafts was therefore based on that carried out by units of the militia in the United Kingdom during their corresponding period of preliminary training, but, taking into account the ability of the young New-Zealander to absorb instruction easily, somewhat faster progress than that anticipated in the United Kingdom was allowed for. All units of the Expeditionary Force are at their war establishments, with a reserve in all units. Plans are in existence for the maintenance of the New Zealand Expeditionary Force at its war establishments by the periodical despatch of reinforcement drafts as required. The total number trained, or under training, for the New Zealand Expeditionary Force is approximately 20,000 all ranks. Recruiting and Enlistment, Second New Zealand Expeditionary Force. The registrations for service overseas reached 38,400 on the 25th May. Recent events have had a decided stimulus, resulting in a substantial increase in enlistments. In addition, 3,235 Maoris have registered for service overseas ; this gives a total of 41,635 registrations for the Dominion. Recruiting for the Fourth Reinforcements is now proceeding rapidly, and it is confidently anticipated that the number required will be enlisted, medically examined, and passed as fit during the next few weeks. In addition to the above 'effort, a total of 4,443 all ranks are engaged with the Regular Forces, also in Home Defence units, temporary instructional and administrative staffs, and general military duties in New Zealand. There are also 763 civilians employed on various duties in the Army Department. Officers and N.C.O.s Training. Owing to the necessity of the rapid concentration of the First Echelon, its officers and N.C.O.s received only one month's prior training. It was, however, possible with the Second and Third Echelons to grant the officers and N.C.O.s at least two months' prior training. In future N.C.O.s will receive three months', and officers and those selected to be granted commissions five months', preliminary training. This latter course is dictated by the fact that most of the officers of the Territorial Force who are eligible as regards age and medical fitness have already joined the New Zealand Expeditionary Force, with the result that officers for future drafts will be composed very largely of newly-commissioned officers. These officers will, however, be reinforcements for formed units overseas, and their comparative inexperience will not be a disability.

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Production of Officers. The shortage of officers available owing to the rapidity of the raising of an entirely new force — viz.. the New Zealand Expeditionary Force —has necessitated the production of a large number of junior officers to fill the establishment of the various units. For these units, up to and including the Third Echelon, a large number of N.C.O.s have received training at the Officer-Cadet Training Unit of the Army School, and have been granted commissions. Courses of Instruction. In addition to the preliminary courses at district schools for officers and N.C.O.s and courses at the Army School for the production of the extra officers required, a comprehensive programme of courses at the Army School has been necessitated by the raising and training of the New Zealand Expeditionary Force. The courses held are — (a) Courses for the training of temporary staff: Officers and N.C.O.s to replace regular personnel drafted to the Expeditionary Force and to provide for the inevitable expansion of the skeleton staff maintained in peace : (b) Courses for field and anti-tank artillery officers : (c) Courses for officers and' N.C.O.s of the Corps of Signals and for Regimental Signal Officers and N.C.O.s of cavalry and infantry units : (d) A snipers' course : (e) An intelligence course : (/) Three courses for officers and N.C.O.s of the Machine Gun Battalion : (g) Cookery courses at the Cookery Wing. ARMY AND DISTRICT SCHOOLS OF INSTRUCTION. Quite apart from the activities of these schools prior to the outbreak of war in training officers, N.C.O.s, and other ranks, the effect of which undoubtedly facilitated the early raising and training of the New Zealand Expeditionary Force, the establishment of these schools has been fully justfied since the outbreak of war. The training of the New Zealand Expeditionary Force has been, to a very large extent, dependent upon the officers and N.C.O.s of the units concerned, and without the prior training of these officers and N.C.O.s at these schools the results obtained could never have been achieved. Although established in the first place for the training of the Territorial Force, the schools stepped into the breach at the outbreak of war, and their activities since that date have been almost entirely devoted to this end. Every opportunity has however been taken to hold courses for members of the Territorial Force whenever accommodation and instructors have been available. TRAINING OF THE TERRITORIAL FORCE. General. It was inevitable with the raising of the Expeditionary Force that the training of the Territorial Force should suffer to some extent. In the main this has been confined to the unavoidable curtailment of courses for the Territorial Force at the Army and District Schools of Instruction. Otherwise a full year's programme of training has been carried out, and all units will have completed their annual training in camp within the next few weeks. The average attendance at camps to date has been 56 per cent. It will be remembered that the Territorial Force was raised from a " Cadre " basis to a reasonable peace establishment only in the few months preceding the outbreak of war. This, combined with the raising of the New Zealand Expeditionary Force, has left the Territorial Force with a very large proportion of young men with insufficient training, and dependent on officers from the reserve, who are in many cases somewhat out of touch with modern training, and N.C.O.s who require more experience. The strength of the Territorial Force, however, has been maintained practically at its Peace Establishment. Intensive Training. Provision has recently been made for an intensive programme of training for the Territorial Force over the next few months, which will allow of all units of the Territorial Force, at their Peace Establishment, receiving three months' continuous training — officers and N.C.O.s receiving a preliminary course of two months' duration. It is safe to say that when this training is complete the Territorial Force will be more efficient than at any period of its history. The strength of the Territorial Force is given in the Appendix. TRAINING OF NATIONAL MILITARY RESERVE. Registrations for the National Military Reserve were closed on 21st October, 1939. The numbers who registered were as follows :— Class I (ex-Territorials) .. .. •• ■■ •• • • 5,169 Class II (returned soldiers) .. .. •• •• •• •• 12,676 Class 111 (other registrations) .. -. •• 10,312-

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Arrangements were made for the training of Classes I and 11, the former in many cases being posted to existing units of the Territorial Force as a reserve. The training of these classes was interfered with owing to the outbreak of war and the more urgent need for the diversion of the bulk of the available resources in instructors and equipment to the training of the New Zealand Expeditionary Force. A programme for the training of portions of Class II is now being undertaken, as described later in this report. TRAINING OF CADETS. Training of Cadet units at secondary schools has continued throughout the year. It was unaviodable that the course of instruction usually held for officers and N.C.O.s of Cadet units during the summer vacation had to be cancelled owing to all energies being devoted to the more important matter of training the New Zealand Expeditionary Force and Territorial Force. The present strength of Cadets is shown in the Appendix. EDUCATION ABROAD. During the year two officers completed the Senior Staff College Course at Minley Manor and one the Junior Course at Camberley. One officer completed the Gunnery Staff Course, specializing in Coast and Anti-aircraft Artillery subjects. Fourteen Cadets graduated at the Royal Military College of Australia in December, 1939, and were granted commissions in the New Zealand Staff Corps. This number included nine who carried out a short course of six months. Ten Cadets commenced a course at the Royal Military College of Australia in February, 1940. The number of Cadets at the College is now twenty. MAPPING AND SURVEY. Arrangements have been made during the year for the aerial survey of several areas of which maps are required for training and home defence. The mapping from these surveys is being carried out as rapidly as possible by the Lands and Survey Department. The mapping of further areas by air-survey methods is now in progress. TRAINING MANUALS. The added activities undertaken during the year caused an initial shortage of training manuals. This shortage has now been overcome by ordering supplies from Australia and by reprinting locally with the permission of H.M. Stationery Office and the War Office in the United Kingdom. MEASURES FOR HOME DEFENCE. As previously stated, Coast Defence and Anti-aircraft Artillery units are maintained at their war establishments. In addition, provision is made for the guarding of vital points against sabotage. The Territorial Force will, under the programme now approved, be rapidly built up to and maintained at its full peace establishment of trained officers and other ranks, and as required will be brought up to its full war establishment. With the object of providing assistance to fortress troops and garrisons at secondary ports, the equipping, arming, clothing, and training of ranks of a force from the National Military Reserve is being undertaken immediately. The measures outlined above will ensure that should the necessity arise, there will be available in New Zealand trained personnel of the Territorial Force and the National Military Reserve adequate to undertake the following duties : — (а) The full manning of all Coast Defence Artillery : (б) Garrisons for all defended ports : (c) Garrisons for secondary ports : (d) Guards on vital points : (e) A mobile striking force in each of the three districts : (/) A centrally-placed Army Headquarters mobile reserve for employment when and where circumstances dictate. Plans for the mobilization and employment of these various forces are in existence, and are the subject of constant revision by the Commanders and staffs responsible. EXPANSION AT ARMY AND DISTRICT HEADQUARTERS. On the outbreak of war immediate steps were taken to expand the staffs at Army and District Headquarters in accordance with scales worked out in peace. For purposes of comparison a summary is given of the situation in September, 1939, and at the present time, of the total staffs at Army and the three District Headquarters : April, September, May, Affi 1 1 1939 " 1939 " 194 °- Umcers and other ranks .. .. .. 439 434 505 In the same period the Army School grew from 81 officers and other ranks to 96.

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REGULAR FORCE. (a) Commands. On 17th December, 1939, on being seconded for duty with the Second New Zealand Expeditionary Force, Colonel E. Puttick, D.5.0., A.D.C. to the King, relinquished his appointment as Officer Commanding, Central Military District, and was succeeded by Lieut.-Colonel R. A. Row, D.5.0., who was granted the temporary rank of Colonel. On being appointed Quartermaster-General and Third Military Member of the Army Board on 29th February, 1940, vice Colonel R. Miles, D.5.0., M.C., seconded to the Second New Zealand Expeditionary Force, Colonel P. H. Bell, D.5.0., relinquished the appointment of Officer Commanding, Southern Military District, and was succeeded by Lieut.-Colonel E. T. Rowllings, who was granted the temporary rank of Colonel. (b) Casualties. During the year there were 30 discharges of W.O.'s, N.C.O.'s, and men. Of this number, 15 were discharged at their own request (9 by purchase), 1 reached the retiring-age, 10 were medically unfit, and 4 were discharged. One warrant officer of the British Army returned to England in February, 1940, on termination of his period of engagement with the New Zealand Military Forces. (c) Strength, New Zealand Regular Force. The present strength of the New Zealand Regular Force (including those seconded for service with the second New Zealand Expeditionary Force) is shown in tables in the Appendix. MEDICAL SERVICES. Prior to the outbreak of war the staff of the New Zealand Medical Corps was wholly Territorial and consisted of the following administrative officers, each of whom received an honorarium:— Director of Medical Services (Army Headquarters), Deputy Assistant Director of Medical "Services (Army Headquarters), An Assistant Director of Medical Services for each of the three Military Districts. On the outbreak of war the staff of the N.Z.M.C. was increased to the following Army Headquarters. Director-General of Medical Services (Army and Air), Assistant Director of Medical Services, Staff Officer and Quartermaster, Civilian Staff of four. All these were employed on a whole-time basis. District Administration. An Assistant Director of Medical Services was employed on a half-time basis for each of the three military districts. With the raising of the New Zealand Expeditionary Force a whole-time Senior Medical Officer was appointed to each mobilization camp, and later three Assistant Medical Officers were appointed. Subsequently full-time medical officers were stationed at Narrow Neck, Motutapu, and Fort Dorset, while part-time medical officers were appointed to fortress troops at Wellington and Lyttelton. New Zealand Dental Services. Prior to the war the Dental Corps consisted of a Director of Dental Services, three Assistant Directors, and six Dental Officers attached to Field Ambulances. When war broke out the Director of Dental Services and later an Assistant Director of Dental Services were employed on a whole-time basis at Army Headquarters, together with an Assistant Director of Dental Services for each of the Northern and Southern Military Districts, these two latter being part-time officers. All dental treatment is now being carried out at the expense of the State, and, with minor exceptions, this is done after the recruit enters camp. For this purpose dental hospitals have been established in each of the three mobilization camps. Camp Hospitals. Camp hospitals, with the most modern equipment, have been erected in the three mobilization camps, each having accommodation for 30 to 50 patients. Each has an establishment of 5 members of the New Zealand Army Nursing Service and 2 officers and 25 other ranks. Smaller camp hospitals are being established at Fort Dorset and Narrow Neck. In consequence of the policy laid down by the Organization for National Security all medical and surgical cases which are unlikely to recover within twenty-four to forty-eight hours are evacuated to the nearest civil base hospital. The Hospital Boards concerned guarantee accommodation for all sick soldiers who may require in-patient treatment. The soldier, therefore, is under complete civilian control during his stay in or attendance at the hospital.

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Preventive Treatment. X-ray of the chests of the whole of the Expeditionary Force, with the exception of part of the first Echelon, has been undertaken. The wisdom of the policy of X-raying the troops is shown by the fact that about 1 per cent showed evidence of latent or active T.B. Tetanus toxoid is now given to all the troops as a preventive measure against tetanus (lock-jaw). Blood-grouping and blood-typing is also carried out. Mortality Rate. It is gratifying to be able to state that the death-rate amongst troops in camp has been remarkably low. Since the mobilization of the Special Force only 18 deaths have occurred amongst troops in camp, and of these, 12 were due to accident. Health op Troops. The efficiency of the medical organizations was severely tried in the latter part of October, and during November, 1939, owing to an epidemic of influenza in which between 40 per cent, and 60 per cent, of the troops were effected. The fact that there was not a single death and only four cases of true pneumonia as a result of this infection is evidence of the success of the measures taken. AMMUNITION. Small-arms. At the beginning of the training year negotiations were in progress with the Colonial Ammunition Company regarding the supply of small-arms ammunition. The negotiations have resulted in an arrangement with the company, which has greatly increased its output, and the ammunition reserve situation is being steadily improved. Gun. Last year steps were taken to increase the quantity of gun ammunition held in New Zealand. Large orders were placed overseas, and the number of rounds per gun has been considerably increased. ARMS AND EQUIPMENT. Orders have been placed for a considerable amount of modern equipment of new types, which have recently been adopted in the British Army. The whole of the Field Artillery has been mechanised. BUILDINGS, WORKS, AND CAMPS. Between the commencement of the training year and the outbreak of war the situation regarding military buildings and works was as follows (a) Coast-defence stations as selected in consultation with the Imperial authorities were in the course of improvement, both in respect to armament and accommodation : (b) Detailed plans had been prepared for the establishment of camps adequate for the mobilization for home defence of the whole Territorial Force : (c) Accommodation for the established Army School and the three district schools was in the process of being increased and improved. (d) Plans for the field-works in connection with the defence of fortress areas had been prepared in detail, and the sources of supply of the necessary materials had been investigated and recorded : (e) Permanent ordnance stores were in the course of erection at Trentham and Burnham. Consideration was being given to the replacement of the existing ordnance workshops by larger and more modern structures : (/) A complete survey of all Army buildings throughout the country —i.e., drill-halls, district and area offices and stores, magazines, &c. —had been made, and a plan framed for new buildings and the rebuilding, extension, improvement, and repair of existing buildings. The programme was made out on a priority basis, and particular provision was made for amenities such as club-rooms, &c., for social and recreational purposes. Coast-defence Stations. On the manning of these stations it became necessary to make immediate provision for housing the personnel. This was done by providing tented camps and hastily erected huts, together with the usual service buildings. The tents have now been replaced by huts or barrack blocks, and the temporary huts are being improved or replaced as rapidly as possible. At all permanent coast-defence stations the pre-war plans for erecting buildings, &c., for the housing, comfort, and training of the troops are being put into effect, although in some cases such works have had to give place in order of priority to works necessary for the actual fighting of the guns.

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Mobilization Camps. As a result of the decision to send overseas a New Zealand Expeditionary Force preparations were immediately made for the erection of hutted camps at the mobilization centres in each military districts—viz., at Papakura, Trent-ham, and Burnham. Tented camps were established at Ngaruawahia, Waiouru, Trentham, Burnham, and later at Palmerston North (for the Maori Battalion) to accommodate the troops while the hutted camps were being erected. The rapid erection of the hutted camps represents a magnificent effort on the part of the Public Works Department, the contractors, and their workmen, all of whom rose to the emergency with a most commendable spirit of keenness and an obvious desire to produce their best and fastest work. The result was that at Burnham and Papakura there were built, in what must have been record time, camps that are probably second to none in the Empire in their provision for the comfort and health of the troops, and in their layout and completeness. At Trentham the situation was complicated by the fact that it was necessary to adapt the existing hutted camp to modern requirements and to provide additional huts in a limited space. Also, owing to lack of space, ordnance stores and equipment had been stored in living huts and these had to be transferred as the accommodation in the new stores became available. However, these difficulties have been gradually overcome, and the building programme at this camp also is practically completed. To sum up, there was built within seven months of the commencement of the war three mobilization camps providing a total accommodation for approximately 7,000 men, and each having iti addition to the normal camp services— Picture-theatre : Post-office : Library : Institutes (Y.M.C.A., Church Army, Salvation Army, &c.) : Wet and dry canteens : Shopping block : Hot and cold showers, drying-rooms, laundry, &c. : Hospital (including contagious-diseases hospital) : Dental hospital : Tar-sealed roads and adequate drainage. Army and District Schools. These are located at Narrow Neck, Trentham, and Burnham, and since the outbreak of war have been used primarily for the training of officers, N.C.O.s, and specialists for the Expeditionary Force. The existing buildings have been amplified and improved, and there is now accommodation and training facilities at the schools for a total of 1,730 all ranks. Ordnance Workshops. Owing to urgent requirements in other directions it was decided to continue using the present ordnance workshops, but to make provision for motor-transport workshops in the three mobilization camps. The number of Army motor-vehicles is now approaching 700, and not only does the maintenance and repair of those vehicles require up-to-date workshops, but the housing of them—especially in the winter months—is essential to prevent deterioration. Suitable garage accommodation is therefore being erected in each of the mobilization camps. Drill Halls, etc. Owing to the more urgent requirements of the mobilization camps and fortress defences only the most urgent work in connection with drill-halls, offices, &c., is being carried out. Accommodation for Vital Point Guards. Owing to the posting of guards at vital points and the establishment of coast-watching stations throughout the country, it was - necessary to make immediate, and in some cases, temporary arrangements for their accommodation. Many of these posts are in isolated positions, and adequate accommodation and rationing presented some difficult problems. These problems have been gradually overcome, and steps have been taken to improve or replace all summer quarters. The position now is that these guards have quarters that will be reasonably comfortable in all seasons. Canvas Training Camps. For temporary accommodation and for field training canvas camps were established at Waiouru, Ngaruawahia, and Cave. At Waiouru, cookhouses, ablution houses, latrines, store-rooms, &c., were erected, and certain main-camp roads were laid down and tar-sealed. This camp area provides the only artillery and field firing-range in the North Island, and if the training of the Territorial Force is to be increased more key buildings will be required. The camp is at present vacant, but will be brought into use again in the spring.

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The use of Ngaruawahia as a training camp was discontinued on the completion of the mobilization camp at Papakura. It still remains the Ordnance Depot for the Northern Military District. Cave Camp was used for the field training of South Island units of the First Echelon and certain Territorial units. This camp can be re-established at short notice and can be used for summer field training for Expeditionary Force or Territorial units as may be required. MOVEMENT OF TROOPS. The movement of personnel within the Dominion from the time of mobilizing an echelon, daily and home leave, and the final entraining to embarkation ports has involved elaborate arrangements covering railways, shipping, road, and air travel. In ordinary times any one of these movements would be considered a major and probably a much publicized event. A rough approximation of journeys already arranged would be about 60,000. Over 13,000 personnel have been despatched on long sea journeys, which create considerable problems. For obvious reasons these problems cannot be mentioned in detail, but, in addition to victualling, arrangements were necessary for the equipping of the troops for overseas climates and for the despatch of military stores for those already gone overseas. Overseas movements have been carried out in co-ordination with the British and Australian Governments not only in respect to supplying and escorting the conveys, but also for loading the ships with produce and for equipping them for the conveyance of troops. The arrangements made for each ship are such that each is a complete military community in itself, highly organized in all essentials. As an example of this not only is provision made for military training on the voyage, but all ships are equipped with hospitals, dental services, postal and pay services, canteens, and/or gift distribution and social amenities. That the movements have so far been carried out so smoothly in New Zealand is attributable to the willing co-operation given by all concerned, and in this respect some special tribute must be paid to the services given by the New Zealand Railways, Harbour Boards, and police and traffic personnel. TRANSPORT. (a) At the beginning of the training year the number of army motor-vehicles, &c., in use in New Zealand was 86. Since the outbreak of war the number has risen to 666, including 136 about to be delivered. (b) Marmon Herringtons (Ford Chassis). —These vehicles were ordered prior to the outbreak of war for use as Field Artillery tractors for the Territorial Force. The number ordered are now all available and will prove most valuable in training of both New Zealand Expeditionary Forces reinforcements and the Territorial Force. (c) Motor-cycles (Norton). —Sufficient motor-cycles have been ordered for the training of the New Zealand Expeditionary Force, and are coming to hand at a satisfactory rate. (d) Breakdown Trucks. —Sufficient vehicles of this type are being built for Leyland chassis by the New Zealand Railways, and will be available at an early date. (<?) Workshop Trucks.—These are in production by New Zealand Railways, and delivery is expected early in July. (/) Maintenance. —A special staff of selected technical engineers has been set up in each district, and workshops and buildings are being provided for maintenance and garaging in each district station. CLOTHING. In the provision of clothing for men proceeding overseas with the Expeditionary Force and for embodied troops in New Zealand the Ministry of Supply has been of the greatest possible assistance, and this applies also to other forms of equipment and materials required for the armed Forces. The close contact that has been kept with manufacturers has enabled orders to be placed and requirements to be fulfilled with the maximum speed and efficiency. Our demands have necessitated an expansion of the production of the woollen-mills, clothing-manufaturers, and boot-manufacturers, and only by the closest co-operation of the manufacturers concerned and a system of planned production has it been possible for our requirements with regard to materials and garments manufactured in this country to have been met. The change-over from service dress to battle-dress slowed down production for a time owing to difficulties met with in the initial stages of manufacture. As these difficulties were overcome and the operatives became more used to the work, the output of the factories increased, until it has now been possible to plan battle-dress production on a weekly output of 2,250 suits. Some difficulty has been experienced in obtaining adequate supplies of cotton materials from overseas, but this difficulty has now been overcome, and supplies for the next six months have been arranged. It is of interest to note that 111,134 yards of cotton trimmings and 254,315 yards of cotton drill have been purchased locally or imported, and that 590,000 yards of cotton drill are on order. In addition to cotton drill already received and on order, it will be necessary to obtain a further 1,000,000 yards to meet our requirements up to December, 194.1. Provision of 54,800 towels, by purchase either in New Zealand or from Australia, has also been made.

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Up to the middle of May, 1940, the following deliveries by manufacturers of materials and garments had been made in New Zealand : Cloth, worsted, medium (for battle-dress) .. .. .. 173,106 yards. Cloth, overcoating .. .. .. .. .. .. 101,932 yards. Tweed, medium .. .. .. .. .. .. 7,767 yards. Tweed, heavy .. .. .. .. .. .. 6,106 yards. Shirting .. .. .. .. .. .. .. 442,176 yards. Blankets .. .. .. .. .. .. .. 92,632 Socks .. .. .. .. .. .. .. 268,266 pairs. Vests, woollen, under .. .. .. .. .. 97,986 Shorts, woollen, under .. .. .. .. .. 97,575 Jerseys .. .. .. .. .. .. .. 36,132 Shirts .. .. .. .. .. .. .. 120,470 Braces .. .. .. .. .. .. 33,220 Boots, ankle .. .. .. .. .. .. 110,584 pairs. *Kit-bags .. .. .. .. .. .. 24,200 *Bags, sea-kit .. .. .. .. .. 27,980 Jackets, service dress .. .. .. .. .. 6,954 Trousers, service dress .. .. .. .. .. 15,000 * Jackets, khaki drill .. .. .. .. .. .. 30,501 *Trousers, khaki drill.. .. .. .. .. .. 29,360 * Jackets, denim .. .. .. .. .. .. 24,603 *Trousers, denim .. .. .. .. .. 23,458 Battle-dress blouses .. .. .. .. .. 14,893 Battle-dress trousers .. .. .. .. .. 18,311 Greatcoats .. .. . . .. .. 22,640 *Hats, felt .. .. .. .. .. .. .. 8 051 Caps, field service .. .. .. .. .. 17,000 * Shoes, canvas .. .. .. .. .. .. 23,000 *Badges .. .. .. .. .. .. .. 81,338 All troops already despatched from New Zealand have been supplied with clothing from the quantities shown above. Under an arrangement with the British Government, New Zealand has undertaken to maintain the Expeditionary Force in certain articles of clothing which can be manufactured in the Dominion. In accordance with this agreement the following have already been despatched overseas to make up wastage : — Socks .. .. .. .. .. .. .. 64,251 pairs. Vests, woollen, under .. .. .. .. .. 18,128 Shorts, woollen, under .. .. .. .. .. 18,128 Jerseys .. .. .. .. .. .. .. 2,016 Shirts .. .. .. .. .. .. .. 18,127 Braces . . .. .. . . . . .. .. 1,100 Boots .. .. .. .. .. .. .. 24,168 pairs. Jackets, service dress .. .. .. .. .. 3,348 Trousers, service dress .. . . . . .. .. 3,348 Greatcoats .. .. .. .. .. .. 2,000 Blankets .. .. .. .. .. .. .. 2,000 A further consignment of these articles will be made at an early date, and it is also intended to send at the same time 20,000 suits of battle dress for the reclothing of troops who have already proceeded overseas. Arrangements have been made with the clothing manufacturers for the rapid production of this clothing. CAMP EQUIPMENT. It has been necessary to make provision for a wide range of articles in very large quantities for the equipping of the mobilization camps. This equipment has been obtained, firstly, from local sources —i.e., either by manufacture or purchase from stocks held—and, secondly, from overseas sources those articles which could not be secured or produced in this country. Included in the list of the articles made in New Zealand are Cookers, 500-man. • Aluminium jugs. Cookers, 200-man. Forks. Cookers, portable. Spoons. Boilers, 20-gallon. Plates, bakelite. Boilers, 8-gallon. Plates, tin. Meat-dishes. Cooks' knives. Steamers. Bed cots.

* Manufactured from materials imported into New Zealand.

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In the early days of mobilization a considerable number of men were, owing to the shortage of hutments, accommodated under canvas. The tentage provided had been in use at the Territorial Force camps for many years, and as a result of its continued use considerable wastage occurred. In order to make up this wastage and to meet any future emergency, arrangements have been made for the manufacture in New Zealand of 2,000 bell tents from materials held by the Army Department. An order has also been placed on the United Kingdom for 150 marquees, for which material was unobtainable in New Zealand. RATIONS AND SUPPLIES. The A.S.C. establishment, which consisted of only 18 all ranks on the outbreak of war, has been built up by the transfer of officers from the Reserve and Territorials unfit for active service, and other ranks enlisted for home service to a strength necessary for the big task of supplying all camps and schools of instruction with the necessary foodstuffs, fuel, forage, and disinfectants. A system of rationing on a cost basis in place of a set scale has been introduced. This has resulted in a marked improvement in the variety, balance, and dietetic values of menus provided in the men's messes, to the satisfaction of all concerned. The present cost of a daily ration is fixed at Is. 9d. CANTEENS. The canteens in training camps are stocked and managed by the Canteen Board. These canteens are proving satisfactory, being well controlled and providing many amenities for the troops. The troopship canteens are provided under War Office charter by the shipping companies concerned. The lists of articles stocked are carefully scrutinized, and addition of New Zealand products made to meet the estimated requirements of the troops during the voyage. Prices of stocks from United Kingdom sources are in accordance with the War Office charter, the local items are sold at cost price (New Zealand currency), the money taken in the canteens being redeemed at sterling rates. This ensures the troops obtaining their requirements at prices far below those obtained in New Zealand. FINANCE. For the year ending 31st March, 194-0, provision was made in the annual vote for a gross expenditure of £1,64-5,84-8, reducible by credits-in-aid of £51,380 to a net sum of £1,594,468, to be found from the Consolidated Fund. In addition, a net expenditure of £600,000 for land, buildings, munitions, and equipment was allowed for from the Public Works Fund, vote " Defence," making, with the before-mentioned figure of £1,594,468, a grand total of £2,194:,468 provided for Army purposes. Under the authority of the War Expenses Act, 1939, a War Expenses Account was established, to which was transferred the unexpended balance of the " Army " vote, and at the same time all moneys expended out of the sum provided in the Public Works Fund, vote " Defence," were made a charge against the War Expenses Account. The total expenditure upon the Army for the year ended 31st March, 1940, amounted to £4,137,230, reduced by credits-in-aid and miscellaneous receipts to a net sum of £4,076,397. CONCLUSION. In conclusion, I wish to state that the results obtained in the very heavy programme undertaken during the year could not have been achieved without the whole-hearted co-operation and devotion to duty of all members of the staff, both military and civil. Loyalty and team-work are essential to success both in peace and in war. All concerned have worked hard and for long hours, and I wish to place on record my appreciation of the help I have received in these respects." I have, &c., J. E. Duigan, Major-General, Chief of the General Staff.

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APPENDIX. Tables showing (strength of the New Zealand Military Forces as at 31st May, 1940 : — (a) New Zealand Regular Force— (i) Present strength. (ii) Personnel in New Zealand Expeditionary Force and elsewhere overseas. (iii) Short-service appointments. (iv) Temporary personnel. (v) Reservists and personnel recalled. (h) Territorial Force. (c) National Military Reserve, Class 11. (d) Senior Cadets. (e) Rifle clubs. (a) New Zealand Regular Force. (i) Present Strength. Officers, 143 ; Officer Cadets, 20 ; other ranks, 552 : total, 715. (ii) Personnel in New Zealand Expeditionary Force and Overseas. Officers, 55 ; other ranks, 187 : total, 242. (iii) Short-service Appointments. Officers, 14 ; other ranks, 18. (iv) Temporary Personnel. Officers, 152 ; other ranks, 898. (v) Reservists and Personnel Recalled. Officers, 12 ; other ranks, 46. (b) Territorial Force (Active List Only). Officers, 755 ; other ranks, 14,694 : total, 15,449. (c) National Military Reserve, Class 11. Total, 11,769. (d) Senior Cadets. District. Officers. Other Ranks. Total. Northern 121 5,073 5,194 Central .. .. .. ..98 5,640 5,738 Southern .. .. .. .. 136 6,406 6,542 Totals 355 17,119 17,474 (e) Defence Rifle Clubs. . Number of Number of District. Clubs. Members. Northern .. .. .. •• •• ..26 1,170 Central .. .. .. •• ..59 2,006 Southern .. .. ■■ •• ..70 2,303 Totals .. .. .. •• 155 5,479

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