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In centres where only a company, half-company, or .squad, or even smaller body of men was availably for training, District Staffs were instructed to approach local bodies, &c, with a view to obtaining the free use —or at nominal rates, to assist the universal-training movement—of halls, sheds, schools, and schoolgrounds, for training purposes. A circular requesting the co-operation in this respect of all County Councils, Education Boards, Borough Councils, Town Boards, Road Boards, &c, was issued, and in many centres assistance has been given by placing the use of the buildings at the disposal of the local military authorities for one or more nights a week. In several cases where Coronation memorial halls are being erected with the assistance of Government subsidies, store-rooms for equipment are being provided and the buildings used for training purposes. In the larger centres, where none or insufficient drill-shed accommodation existed, the renting or leasing of suitable premises has been approved, such as Hamilton, where the increased number of units established necessitated the leasing of the Horse Bazaar, and letting the existing drill-shed and grounds to meet same; Pahnerston North, where the Manawatu Agricultural and Pastoral Association's premises have been leased; and Hawera, where negotiations for the lease of the local Winter Show Society's premises are under way. The Dunedin Garrison Hall being unequal to requirements, a new site has been acquired on behalf of the local trustees, who propose disposing of the existing property, and providing an up-to-date drill-shed, &c. The increased number of units, and the fact that the buildings are now required continuously for training purposes, preclude any revenue being derived from them to meet charges for liabilities. The latter have therefore been assumed by the Department in the case of the Dannevirke and Pahiatua drill-sheds and Alexandra orderly-room, which have been taken over from the local trustees. A grant of £600 has been approved to secure the extension and use of the Petone Navals drill-shed for four other companies. Grants for additions or repairs have been made in the case of drill-sheds at Auckland and Greymouth, and minor alterations and repairs have been carried out in other cases where necessary. Sites for drill-sheds have been acquired at AVhangarei and Thames, and an extension to the drill-shed reserve has been obtained at Timaru. Similar arrangements and negotiations are in progress throughout the country, and by degrees we shall set all drill-halls on a satisfactory footing. 29. Artillery Gun-sheds and Stables. The establishment of field batteries in the various centres necessitated the provision of accommodation, where such did not exist, for the horses and guns to be stationed there. Plans and specifications for the requirements in this direction have been approved, and the necessary buildings will be erected as early as possible at Hamilton, Wellington, Christehurch, Nelson, Dunedin, Auckland, Napier, Palmerston North, and Invercargill. 30. Stores, Offices, and Magazines. Additions to the Headquarters offices, Wellington, necessary to provide accommodation for the Staff, have been made. A new clothing-store building, in brick, has recently been provided in Wellington, being keenly wanted to ensure the safety, and to facilitate the handling, of the large supply of clothing and miscellaneous stores required for the equipment of the Territorial Force and Senior Cadets. An office for the Director of Stores and his clerical staff is also being erected, to replace the old and insanitary premises previously occupied, and which were originally erected by the Imperial troops some sixty years ago. Repairs and additions to the District Storekeeper's residence, Auckland, have been carried out. Additions to the district store at Auckland are under consideration, to cope with the increased requirements in that direction. The provision of another small-arms-ammunition store or magazine in the Otago District is considered necessary, to relieve pressure on existing magazines. 31. Training-grounds. The reservation of the training areas in the Waimarino district, in the North Island, and in the Waimakariri district, in the South Island, has been completed. A certain amount of treeplanting for shelter and tactical purposes has been carried out on the Waimakariri Reserve. As the past year has been the initial one for the Territorial Force, and training has been restricted to regimental camps in suitable local centres, no concentration at these sites for manoeuvre purposes has yet taken place. 32. Clothing and Equipment. fa. J Accoutrements. Sixteen thousand sets of the Mills web Infantry equipment; and 16,000 water-bottles, Mark VI, were ordered, and of these some 10,000 sets have come to hand. Ihese are being issued to Infantry regiments, from whom the buff and brown leather equipment is being withdrawn. The Mounted regiments are equipped with the brown-leather bandolier equipment, an additional order for 1,000 sets, to complete, having been placed in the Dominion. The Garrison Artillery, Field Artillery, and Engineers are equipped with brown leather acoutrements, in addition to which these and Mounted Rifle regiments are equipped with the Mark IV water-bottle.

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