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SECTION I.—THE DOMINION SECTION OF THE IMPERIAL GENERAL STAFF. 1. Drill and Parades. Notwithstanding the great difficulties inseparable from the present abnormal strain, the drills and parades of both the Territorial and Cadet Forces have been, carried out satisfactorily during the past training-year. The majority of officers of both forces have displayed an encouraging spirit of keenness, evidenced by the record attendances they have made at district camps of instruction. Both forces have been handicapped by reason of so many experienced officers having joined the Expeditionary Force, This has been largely compensated for by the reduced size of units, brought about by the number of exemptions from military training granted by the Defence Department. These have been granted in all cases where undue hardships would otherwise have been inflicted on a man or employer engaged in essential industries, The officer of to-day must necessarily also be an instructor. Unless those under his command recognize his professional superiority it is impossible to expect intelligent work or good discipline. Apart from this it is essential that the military work be made so interesting as to appeal to the imagination of the soldier. This is recognized by the majority of senior officers. Junior officers, as far as possible, are not permitted to lend or instruct until thoroughly versed in all branches of military work. This principle lias been accepted by the majority of the junior officers in a most satisfactory spirit, and will produce good results. A considerable improvement has taken place in regard to discipline, and, considering the difficulties of the present abnormal time, the machinery of Territorial and Cadet training has worked smoothly and with excellent results. 2. Tebkitobial Training-camps. In conformation with the policy of the Defence Department, and acting on the knowledge within its possession, it was considered essential to hold the annual training-camps. Every possible endeavour was made to place the minimum strain on both employer and employee engaged in essential industries. The most careful arrangements were also made to ensure that as few employees as possible from any particular firm attended camp at any one time. Those Territorials who were not entitled to total exemption were permitted to attend camps at any time between the Ist February and 31st May. The Territorial soldier employed in an essential industry was given the opportunity of electing to attend (a) the camp of his own unit, (b) that of some other unit, (c) a casual camp. The additional heavy strain thrown on a depleted Territorial training staff by reason of the necessity for granting such liberal concessions to the individual Territorial soldier will be appreciated. Thanks to the spirit and energy with which the Staff has worked, all difficulties were surmounted and good results obtained. A large proportion of (hose attending camps were recruits, many of whom had little military experience. The advantage of giving these Territorials the benefit of a week's fresh air and exercise, in addition to military training and discipline, was most apparent. The opinion has been expressed that the loss of labour due to the week spent in camp fry an employee is more than compensated for by his increased power for work as a result of the physical and military training in the open. Tin' results achieved in such a short training were extraordinarily good in the majority of cases. The health of the Territorial troops in camps has again been excellent. The localities of camps held throughout the Dominion are given in Appendix C, which will be printed separately and submitted as a supplement. Thanks are dm: to the landowners who allowed the troops to camp and train on their lands. On the completion of the main animal camps casual camps were held for those men who were unable to attend the camps of units. The Commandant and Chief of the General Staff were unable to visit many camps owing to pressure of war work. The majority were, however, visited by the Director of Military Training. As a proof of the necessity for holding the Territorial camps at a time when military discipline and efficiency is of paramount importance, it may be mentioned that more than 300 officers and over 12,000 other ranks who attended the Territorial camps during 1916 have been enlisted in the Expeditionary Force. Of those trained this year an even greater proportion will join the Expeditionary Force. To ensure units working on the same lines a syllabus of training was issued from Headquarters which provided that the work should be of a systematic and elementary nature suitable for the age and experience of the average Territorial recruit under existing conditions. The work seen in camp was good, and all ranks appeared keen and anxious to become efficient. The standard of discipline has been high. The policy of concentrating the best instructors for each unit camp was again adopted, and proved economical and valuable in practice. All ranks of the Expeditionary Force owe much to the training they have received in the Territorial Force. The greatest credit is due to the officers and non-conimissioned officers of the Headquarters and District Staff and units, particularly those who have returned from active service, who have worked efficiently and well to help forward (he efficiency of the Territorial Force in the face of great difficulties, and in spite of the added strain brought about by (he Military Service Act. The arrangements for the attendance of Medical Officers at the various camps were satisfactory, and the work performed by the Medical Officers extremely creditable. The sanitary arrangements of all camps inspected were found to be excellent. The various religious denominations were represented at the camps, and amongst others the V.M.C.A., C.E.M.S., and Salvation Army had institutions in the majority of the camps.