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(b) hats already been tentatively tried by certain squadrons at their own expense, with marked success, and I estimate that the expenses of concentration and of providing the necessary forage and rations will not greatly exceed the amount saved in travelling-expenses of instructors both under this heading and under (c). Reference (o paragraph 26 of my last year's report will show that I then recommended these concentrations for country units of the Territorial Force, but the necessary arrangements could not then be made. (c) means a closer adherence to Lord Kitchener's area system, on which the whole scheme was based, and a stricter insistence on the principle originally laid down at the first trainingcamp at Tauherenikau in 1911—that all permanent officers and non-commissioned officers except those employed with the more technical units must be qualified to instruct Horse, Foot, and Cadets, and must not specialize in any one of these branches of the service, or be specially earmarked for instructional duty with any one of the three except in camp or on mobilization. In future each of these permanent officers and non-commissioned officers available for instructional duties will have a definite geographical responsibility for all training in an assigned area. No increase of personnel is involved, and a saving in travelling-expenses wil! be effected by the adoption of this recommendation. A further and most important point to which the Inspector-General draws attention (paragraph 87 of his report) is the necessity for the passing of a Manoeuvre Act such as exists in England and Australia. I hope that this question may receive the consideration of the Government at an early date. During the past year the periods of engagement of many of the Imperial officers serving in the Dominion have expired, and in other cases their expiry has become imminent. The most important of the appointments which have been made will be found in Appendix C. I stated in my last report that it had been decided definitely to establish the principle of appointment of officers from the ranks only, and that for this purpose a competitive examination of N.C.O.s for commissions had been instituted. This system is now normal, and it is only in cases where the list of those N.C.O.s who have qualified for promotion to commissioned rank has become exhausted that appointments to commissions are made in any other way. In the exceptional cases where such appointments are necessary they are made on probation, and lapse at the end of a year if the officer appointed has not by then passed the qualifying examination for the rank lie holds. As regards the main points of my report, I have divided them into the three branches under which they would come in accordance with the recommendations of the Inspector-General. Under Section I, the General Staff Branch, will be found my remarks on the past year's training and my proposals for next year's camps. I am reporting to you separately and confidentially on certain strategical questions which have arisen out of our Staff exercises during the past two years. Under Section 11, the Adjutant-General's Branch, is all that relates to the personnel, establishments, organization, and discipline of the Forces. Under Section 111, the Quarter-master-General's Branch, is all that concerns the business administration of the Department. With regard to this, I would draw your attention to the fact that at the camps this year the average cost per day of the ration per man was Is. 4'3d. and of the forage per horse 10'4d., as against the 2s. per man and Is. 6d. per horse which has, as a rule, been hitherto paid. Further details of the proposed organization are printed in Appendix D. In conclusion, I wish to place on record my conviction of the great and lasting value to the Forces of the Dominion of the visit of the Inspector-General of the Oversea Forces. Not only have all of us officers who are responsible for the training and administration of the Army benefited by his advice and criticism, but the encouragement to the troops of being inspected by so distinguished a soldier will have a far-reaching effect on the efficiency of the Citizen Army. I trust that in the future periodical inspections of the same nature will be made by senior General Officers from the Mother-country. In no way can co-operation, uniformity, and reciprocity in matters of defence between the various portions of the Empire be more certainly assured. May I add, sir. that it was a source of much satisfaction to all ranks of the Forces that you were able to be present at all the camps, and at most of the Cadet concentrations, to see for yourself the progress that has been made during the year. I have the honour to be, Sir, Your obedient servant, Alex. J. Godley, Major-General, Commanding New Zealand Military Forces.

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