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The added interest and amusement these institutions provide the soldiers is of incalculable value, and the best thanks are due to all concerned for the work which they did and the recreation they provided. 3. Training generally of the Territorial Force*. Although the Territorial Force has been still further depleted of a large number of its permanent officers, those who remain have made every effort to increase the efficiency of their units. A certain number of officers and non-commissioned officers have rejoined their units from the Expeditionary Force, and are doing useful work. The up-to-date knowledge and military value of these officers and non-commissioned officers will be appreciated. Every possible endeavour has been made on the part of the Headquarters and District Staffs to give officers the vi »1 assistance in regard to the latest teachings and lessons of modern war and training by means of Staff, district, and regimental exercises. These were conducted by the Director of Military Training and the General Staff Officers of all districts, and have proved of the utmost value to all concerned, particularly to those officers who will serve with the Expeditionary Force. The majority of the officers of the Territorial Force have every opportunity to benefit by these courses of instruction, the effect of which has been most noticeable in the unit camps. The work of the officers of the New Zealand Staff Corps and non-commissioned officers of the Permanent Staff in the instruction of the Territorial Force and Cadets has been most satisfactory. Officers and non-commissioned officers temporarily posted for duty with the Permanent Force have made considerable improvement, and in the majority of cases have worked with zeal and efficiency. Since the introduction of the Military Service Act it has been recognized that the majority of the Territorial Force will be required to serve in the Expeditionary Force. The whole effort of the Territorial Staff is therefore being directed to send the Territorial officer, the noncommissioned officer, and soldier into the Expeditionary Force with a satisfactory standard of discipline and individual efficiency. 4. Staff, District, and Regimental Exercises. A district exercise for the instruction of senior Territorial Force and Cadet officers was held in each of the four military districts under the direction of the Director of Military Training. One hundred and sixty senior officers attended the four exercises. Apart from other advantages, these exercises tend to ensure a uniform system of training throughout the Territorial and Cadet Forces in the Dominion. Commanding Officers were encouraged in uvvry way to hold regimental exercises for the instruction of their officers and non-commissioned officers, and it is hoped that good results will be obtained. In addition each district held courses of instruction for the officers and non-commissioned officers of the Permanent and Temporary Staff, and for the instruction of officers and noncommissioned officers of Territorial and Cadet units prior to the annual camps, and to certain examinations. The Wellington and Canterbury Districts were again particularly successful in regard to their courses, which produced good results. The experiment was tried in (he Wellington District of brigading all machine-gun detachments in one camp of instruction. This proved most successful, and much valuable work was done. 5. Mounted Rifles. Considering the shortage of experienced officers, and the inexperience of tin: majority of the rank and file, the progress made by Mounted Rifle units during the past training-year can be considered as satisfactory. Instruction lias been confined to elementary mounted and dismounted drill, horsemanship, &c. The large percentage of recruits to be found in the Mounted Rifle ranks has considerably accentuated the vital importance of maintaining the Territorial training. Owing to the keenness and good work of officers and non-commissioned officers, and the soldierly spirit prevailing in the'majority of units, the annual training gave sufficient opportunity to bring units to a satisfactory standard of discipline and efficiency, and enabled them to retain the regimental traditions so essential to military efficiency. 6. Territorial Field Artillery. (a.) Field Artillery Cadres. During the year the Royal New Zealand Artillery Cadres have been replaced by temporary men enlisted from returned soldiers and men unfit for the Expeditionary Force. These recruits were pul through a course of training at the Field Artillery Depot, Wellington, for four months, and are now stationed with the various cadres. This lias enabled the balance of the Royal New Zealand Artillery (Field Section) to join the Expeditionary Force Reinforcement drafts. (b.) Buildings. The cadre buildings throughout the Dominion are in good repair, and are practically complete, with the exception of Palmerston North, where the drill-shed has not yet been erected.