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(5.) Officers and men, on mobilisation, to receive pay at the same rates as those adopted for the Permanent forces of Australia. When serving outside Australia they will be subject to the Army Act. (6.) Mobilisation stores, to enable the Force to take the field fully equipped, to be maintained locally in Australia. (7.) All other details of organization to be settled by the local authorities, but so far as possible the officers and men should be organized in peace in the battalions, regiments, and brigade divisions, or at least in the batteries, companies, and squadrons to which they would belong in war. The scheme for bringing these units together into a higher organization on mobilisation must be carefully worked out in peace, and be complete in every detail. 12. It will be observed that the above lines are suggested as those on which the Commonwealth Ministry should be encouraged to work. How and in what form these suggestions can be best laid before the Australian Ministry is a delicate matter which needs careful consideration. It is believed to be the policy of His Majesty's Government not to press the self-governing colonies in such matters, but to look rather to the colonies to take the initiative. It is understood, however, that the subject of colonial co-operation in Imperial defence is likely to be mentioned at a Conference of Colonial Premiers, which will probably be held on the occasion of the King's coronation ; if so, this would be an admirable opportunity for the free exchange of the views of His Majesty's and the colonial Governments. The matter is, however, one on which it is desirable that the Colonial Office should be consulted, and possibly it may be also thought expedient that the details of this scheme should be referred to the Colonial Defence Committee for consideration. New Zealand. 13. The military forces of New Zealand consist of—(1) Permanent militia, (2) militia, (3) Volunteers. Force (2) comprises all male inhabitants (except Volunteers and seamen) between the ages of seventeen and fifty-five, and is liable to an annual training not exceeding 168 hours in the year, but at present it is neither trained nor organized. The strength of the trained forces of the colony was as follows on the 31st December last:— All Banks. Permanent ... . ... ... ... ... ... 299 Volunteers ... ... ... ... ... ... .. 17,003 Total ... ... ... ... ... ... 17,302 The New Zealand forces have, in training, organization, and discipline, been in past years somewhat behind the Australian Colonies. Nevertheless, New Zealand may take great credit in that it is the first and, as yet, the only colony in the Empire to enact legislation permitting the enrolment of colonists as an Imperial Reserve. The section of " The New Zealand Defence Act Amendment Act, 1900," creating this reserve is printed in the Appendix of Memorandum No. 271 M of the Colonial Defence Committee, which discusses in detail the effect of this measure. It will be observed that the Committee recommend that the reserve should be organized as a separate field force on the same lines as the Australian Field Force. The Secretary of State for War has approved of this recommendation, and it may therefore be assumed that the same policy should be adopted as regards the treatment of this question in New Zealand as has been already proposed for Australia. The contingent from this colony might be termed " the Imperial New Zealand Force," and the conditions suggested in paragraph 11 might be applied mutatis mutandis. The present war has caused a remarkable military revival in the colony, and during the last year the mounted rifles increased in strength from 1,194 to 6,474, and the infantry from 4,997 to 7,873. If these figures are maintained it would seem possible to organize for Imperial service a mounted brigade and two battalions of infantry—say, in all about four thousand men. South Africa. 14. The excellent material which exists in the manhood of South Africa for building up in the future a valuable addition to tbe forces of the Empire is very manifest. The war has further shown that life on the veldt even in peace-time insures the possession of that readiness of resource and natural instinct which are essential to a soldier in the field under the conditions of modern war. It is evident that men in possession of these natural advantages require less training for war than lads born and bred in the large cities of civilised countries. It may be hoped that in the future, therefore, we may be able to take advantage of this admirable recruiting-ground, and that both the Dutch as well as the English colonists of South Africa may some day fight for the Empire side by side with the regular army. It is obvious, however, that at the present moment the consideration of any scheme for the organization of an Imperial South African Force would be mere academical labour. Canada. 15. The Canadian military Force consists entirely of militia, in which all male inhabitants of Canada between the ages of fifteen and sixty (excepting only ministers of religion, Judges, professors, &c.) are liable to serve. This force is divided into—(l) Permanent, (2) Active, (3) Reserve. The two first classes are recruited by voluntary enlistment; the third, which is untrained and unorganized, comprises the rest of the male population.

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