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those serving in the colony, at present have ever been through a proper detail course of instruction in artillery duties. The three artillery instructors from the Imperial service we now have in the colony continue to give every satisfaction, and the artillery portion of the Volunteer Force throughout the colony are deriving much benefit from their instruction. So that we may not altogether lose the services of trained men who leave the Force after having put in a few years' service, I have submitted to you for approval my proposals for the future terms of enlistment, which provides for the formation of a reserve to the Permanent Force. Both the pay and position of the artificers has been approved during the past year. I again recommend that married quarters should be erected at the four centres for the married men of the Force, and that recreation-rooms and gymnasiums should be provided. Volunteers. The establishment of corps as sanctioned by regulations is now practically complete. During the past year the following corps have been accepted : Four corps of Mounted Eifles, one Engineer corps, six Infantry corps, one Bearer corps. The following is the present District Establishment of the Volunteer Force ; — Auckland District — x 2 naval artillery corps, 1 company engineers, 1 garrison artillery corps, 15 companies infantry (2 battalions), 1 submarine-mining corps, 1 cycle corps (under offer), 4 companies mounted rifles (1 battalion), 1 bearer corps; 1 battery field artillery, Wellington District — 2 naval artillery corps, 1 battery field artillery, 1 submarine-mining corps, 19 companies infantry (3 battalions), 5 companies mounted rifles (1 battalion), 1 cycle corps ; Canterbury District — 1 naval artillery corps, 1 company engineers, 1 company garrison artillery, 16 companies infantry (2 battalions), 4 companies mounted infantry, 1 cycle corps, 1 battery field artillery, 1 bearer corps; Otago District — 2 companies naval artillery, 16 companies infantry (2 battalions), 4 companies mounted rifles (1 battalion), 1 cycle corps, 1 battery field artillery), 1 bearer corps ; 1 company engineers, Nelson District — 1 company mounted rifles, 9 companies infantry : 1 field battery (2 guns), Making a total for the colony of— 7 companies naval artillery, 3 companies engineers, 2 companies garrison artillery, 75 companies infantry, 2 submarine-mining corps, 4 cycle corps, 18 companies mounted rifles, 3 bearer corps ; 5 field batteries, with a total enrolled strength on the 30th June, 1899, of over 7,000 men. In. addition to the above, three companies of infantry are in course of voluntary disbandment. During the past year the enthusiasm for volunteering has been very great, and offers of the . services of corps have been received from all parts of the colony. Owing to the authorised strength of the volunteering establishment being practically complete, we have had to refuse the services of not less than fifty proposed new corps. The Government have it, I understand, under consideration to ask for extra funds for extra corps in localities where their services could be quickly utilised in the general defence scheme of the colony. Mounted Corps. I was able to get three corps of the Wellington Battalion of Mounted Eifles into combined camp last September ; but in none of the other districts could this be arranged, except at Easter time, during the past year. A proposal which emanated from the officer commanding the Otago Battalion of Mounted Eifles that the mounted corps should all be allowed to remain in camp at Easter for seven days was sanctioned, but the results were most disappointing. This may probably have been due to the fact that not sufficient notice was given to the Volunteers of the concession being granted. In the Auckland District alone did the men remain out for more than four days at Easter. For the extra days they were in camp they drew 2s. 6d. a day, with an addition of Is. 6d. daily for forage. It is of the utmost importance that the companies should be instructed to work together, and I propose giving it another trial this year. As I pointed out in my last annual report, the mounted men only get the same allowance for their company camp as the infantry Volunteers, and have to pay for the forage of their horses out

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