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BEPOJKT. I. The Military Institutions of New Zealand. Headquarters Organization. 1. The Minister of Defence is responsible to Parliament both for the Navy and the Army of New Zealand. The General Officer Commanding the New Zealand Forces is the responsible adviser of the Minister, and, under him, controls the Military Forces. He is assisted by the following heads of departments : — The Chief of the General Staff ; The Adjutant-General to the Forces ; The Quartermaster-General to the Forces : The Director of Ordnance ; The Director of Accounts. The distribution of duties amongst the Staff at Headquarters is shown in Appendix I. Territorial Organization. 2. The Dominion of New Zealand is divided into four military districts each under a Permanent District Commander assisted by a Staff, as shown in Appendix 11. There are two districts in each Island, their boundaries corresponding generally with those of the four land districts—viz., Auckland, Wellington, Canterbury, and Otago. Each district is divided into four or five " area groups or " areas," each commanded by a Permanent officer*. An area as a rule furnishes a complete Infantry regiment (of one battalion), as well as other units, or portions of units, and Cadets. An area is divided into two or, as a rule, more sub-areas, each in charge of a Permanent nonen in missioned officer. Unit Organization. 3. The organization and establishments of units are, speaking generally, the same in peace as in war. They are composed of Territorial officers and men. There are no units composed wholly of Permanent men. A slight mixture of the Permanent element is permitted in Territorial units as follows : — (a.) Each battalion of Infantry and regiment of Mounted Rifles has a Permanent Adjutant, sergeant-major, and quartermaster-sergeant. (b.) Each Field Artillery brigade has an Adjutant, a battery sergeant-major, a battery quartermaster-sergeant, a farrier-sergeant, and a saddler-quartermaster-sergeant. In addition, each battery has a Permanent cadre of two non-commissioned officers and eight men (gunners and drivers) and twelve horses. This personnel belongs to tin . Royal New Zealand Artillery. (c.) Each fort ha's a small cadre of Permanent Garrison Artillery. These cadres supply the assistant "instructors, specialists, district gunners, &c, necessary when the forts are manned for service practice or instruction. These also belong to the Royal New Zealand Artillery. Liability to serve in Time of War. i. Under section 27 (1), Defence Act, 1909, all male inhabitants of New Zealand between the ages of seventeen and fifty-five, not exempted, are liable to serve in the Militia. Under section 28 (1), Defence Act, 1909, the whole or any part of the .Militia may be called out in time of war by Proclamation, and, when so called out, becomes a part of the Defence Forces. In so far as all males between the ages of seventeen and fifty-five can be called upon to serve in the Militia, all military bodies in New Zealand whose members are between the above-mentioned ages (e.g., Territorial Force, Reserve, General Training Section, and Rifle Clubs) would be included in the term " Militia." Separate provision exists under section 71 (1) of the Defence Amendment Act, 1912, for calling out the Territorial Force or any part thereof for active service without having recourse to section 28 (1) of the Defence Act, 1909, above referred to.

* Organization has now reached a stage when the group of areas formed under the Kitchener scheme has become in itself an administrative area. I recommend, therefore, the " area group " being termed the " area "in future, any subdivisions of it being " sub-areas." I have used these expressions throughout my report.