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shall be encamped and disposed at their war stations according to the approved schemes, and that while they are so encamped small mobile columns of all arms, consisting, as it rulu, of v regiment of Mounted Rifles, a brigade or. battery of Artilleiy, and a battalion of Infantry, shall be encamped outside these cities and within striking distance of them. The Coast Defence Commanders of the South Island and Brigadiers and Commanders of other units will, 1 trust, be able to attend these camps as well as their own. There will be many valuable lessons to be learnt. Up till the last two or three days units will be at the sole disposal of their Commanders. The state of war which will then exist will afford a valuable test not only of the defence of the ports, but also of the mobility of the columns which will attack them. In all other cases throughout (he Dominion the camps will be by units and entirely at the disposal of their commanders for putting into practice the principles which I trust they have learnt during the past two years. Appendix G gives a more detailed statement of the camps for next year. All unit camps will be held between the Ist March and the 30th April, leaving May free for the " casual " camps. The Mounted Rifle camp in the South Island will probably be held during the first half of March, the Wellington Coast Defence camp during the last half of March, and the Auckland Coast Defence camp during the first half of April. As soon as the dates of these camps are definitely determined all other unit camps may be fixed, at times other than these, as best suit local requirements. Arrangements should be put in hand at once by Officers Commanding Districts for the squadron and company concentrations recommended by the Inspector-General for country units. These may either take the form of sepaiate camps earlier in the 3'ear, or of arrival at the place of the annual statutory camp ii week before the eleven days now required. I prefer the former alternative, as it will better ensure that the equadron or company commander has his men to himself, and that he sees them twice in the year; also, I think that in this way it may frequently be arranged locally in barns or billets without camp equipment. But 1 wish squadron and company commanders to be given a free hand to choose for themselves which they will do, and camp equipment will be forthcoming if required. It should be realized by ilie public and by all concerned that this system entails no increase of training. It is exactly the same amount (if anything a little less) than that which has hitherto been demanded, but it is arranged in this way as much to suit the convenience of farmers and employers in the country as for any military reason. A schedule of my proposals for the courses of instruction and all training for next year is piinted as Appendix G (2).

SECTION lI.—THE BRANCH OF THE ADJUTANT-GENERAL TO THE FORCES. 28. The Rotal New Zealand Artillery. The regiment is now up to establishment—viz., 315. Since the conditions of pay and service have been improved no difficulty has been experienced in obtaining recruits of a suitable type, including some ex Imperial Artillerymen of exemplary character who have come to settle in New Zealand.- Enlistments during the year, 59. Discharges: By purchase, 8; at own request, 5; as unsuitable, 10; medically unfit, 3; retired for age, 4; on transfer to the Permanent Staff, 6; misconduct, 1; transferred to Public Seivice, 2; death, 1; desertion, 1 : total, 41. 29. New Zealand Staff Corps. Including Cadets at the Royal Australian Military College, the establishment of the corps (100) is now complete. 30. New Zealand Permanent Staff. r The following is- now the establishment:— Area sergeants-major ... ... ... ... ... ... 56 Regimental sergeants-major ... ... ... ... ... 29 Regimental quartermaster-sergeants (including 2 for New Zealand Railway Battalions) ... ... ... ... .. ... 31 Brigade sergeants-major ... . . ... . . ... 8 Field Artillery instructor .. ... ... ... ... 1 Engineer instructors ... . .. ... ... ... 12 Field Ambulance instructors ... ... .. ... ... 4 Army Service Corps instructors ... ... .. ... ... 4 Sergeant instructors in areas ... .. ... ... ... 48 Group orderly-room and quartermaster-sergeants ... ... ... 18 Total ... ... ... ... ... ... 211 The increase of six in the establishment has been necessitated by the development of the following Engineer units—viz., Mounted Signal troops, divisional Signal Companies, and Railway Battalions. I trust that the increase of pay, proportionate to that which was last year granted Jo the R.N.Z.A., which has been recommended for this very deserving body of warrant and non-com-missioned officers, may be sanctioned. 31. Medical Services. The work done by those officers of the New Zealand Medical Corps who attended the camps was very good, but I regret to say that there is still a number of officers in the New Zealand Medical Corps who under present conditions seem to find it impossible to come to the annual camp.

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