H.—l9.

7

Intelligence. A section for intelligence has been formed. This very important department of a military service is naturally in many ways of a confidential, often secret, character. Much important and valuable information has already been circulated to those concerned. The collection of intelligence now in hand will shortly enable exchange to be completed with the War Office, Canada, and Australia, and cannot fail to produce better preparedness in our forces. The work of this section is being made to conform to the methods laid down by the Imperial service so that the exchangesbear more than local significance. Mobilisation. This most important question has in the past been barely touched, but is now receiving close attention. Without some general system no Force can be made use of to the best advantage at short notice, or provided for until they reach their destination. To meet this, and enable all concerned to become acquainted with their duties, a set of regulations and instructions for mobilisation suited to local requirements is now well forward. These will be printed and taken into general use when completed. With a better knowledge of the duties, many irregularities and unsoldierly methods of assembling troops for manoeuvres will give place to the method which should obtain when called up for service. The necessity of a nucleus of an army service corps will be at once apparent with these regulations. The efficient carrying-out of the several defence schemes for the colony is really dependent on a sound mobilisation system not only as applied to the active Force, but also to its upkeep, and the augmenting same, as the exigencies of the service demand. War Regulations. These regulations, being of a more or less confidential nature, need not here be detailed, sufficient to say that they, bear a close relation to the defence schemes. Senior officers are being taken more into confidence in this respect, and given opportunities to become more acquainted with their duties in war, it being obvious, if these matters are kept locked up in one place, officers concerned, not having the chance to study them, cannot be expected to carry out their duties should the emergency suddenly arise. Department of Adjutant and Quartermaster-General. Musketry. The Annual Course of Musketry has this year been issued in pamphlet form for convenience. In addition to the usual course a large amount of useful information in shooting, &c, with a number of detailed schemes for field-service practices, have been introduced. In view of the large proportion in each company who do not shoot well, it was not considered advisable this year to alter the course. There are on an average ten to twenty men in each corps who qualify as marksmen are excellent or good shots, and improve themselves. About the same number may be termed fair'to medium shots, and require to be helped to improve. The remainder of the corps generally are not good shots, and, it is feared, in many instances do not complete or fire even the elementary practices, or take the slightest interest in rifle-shooting. It is intended for next year to arrange the Musketry Course into three classes, especially with the object of improving the latter two classes, securing more supervision and instruction on the range during the course, making the classes progressive, and releasing the first-class shots from annually repeating the elementary or training course. Medical. The further organization of the Medical corps is to be gone into on arrival of the AdjutantGeneral Excellent Field Hospital and Bearer corps exist at each centre, but there is no organization or system for the Medical Staff. Regulations for guidance of the medical services and equipment of same will in due course be compiled and issued. Veterinary. On the return of the Principal Veterinary Officer from Great Britain, and the arrival of the Adjutant-General, this department will be organized and regulations issued. Appointments, Promotions, and Resignation of Officers. During last Volunteer year, 196 officers were granted appointments, 180 resigned 25 appointments lapsed through failure to pass examination (the majority of these being renewed for second trial), 4 were cancelled for absence from the colony without leave, and 227 promotions were effected. Department of Finance. The amount expended on Defence services last year out of the Consolidated Fund was £152,765. For this year the Council estimate that £184,024 will be required, an increase of £31 259 This is accounted for in having to provide extra for small-arms ammunition cordite, &c, ±8,000; tor payment of postage and telegrams consequent on the abolition of frankmg-powers, £2,000 ; for miniature-rifle ranges, £600; for capitation to Volunteers, £10,000, a large proportion of which was due for last year, the returns not having been rendered in time for payment before the 31st March; to provide for pay of Permanent Force according to establishment, £5,000; and £5,000 for salaries and allowances of Headquarters and Instructional Staff. _■ . . ■- . The forms of estimates of expenditure for the current year have been altered to show the Permanent Force as distinct from that of the Volunteers and rifle clubs, so that the cost of the maintenance of the different Forces to the colony may be seen at a glance. Provision will have to be