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higher the standard of efficiency of an officer or non-commissioned officer the higher the efficiency of those under his command, and the more economical a unit becomes in life and treasure. By means of Diminion and District exercises it is hoped to give careful training to all those responsible for the future instruction of the Territorial and Cadet Forces. The present war has taken from the Dominion the large majority of the most experienced officers and non-oommissioned officers and soldiers of the Territorial and Cadet Forces, only a percentage of whom have yet returned. As a. result the bulk of the rank and file now serving in the ranks of the Territorial Force are recruits. This hns in consequence reduced the standard of efficiency, and the training required from unit officers is of an elementary and individual nature. It has long been recognized in all armies that upon this preliminary training depends the whole future success of a regiment or army. Faulty or too advanced a standard of training must result in indifferent or superficial soldiers. The greatest care is therefore being taken to ensure that all officers of both forces realize their responsibility in this matter, and are qualified or become qualified to undertake the training of those under their charge. A Dominion Staff exercise will again he held for senior Staff Officers, followed by a district exercise in all four districts, which will be attended by senior regimental officers. These will bo held by the Director of Military Training. Following these exercises will come the usual district refresher courses, which will ensure all members of the Permanent and Temporary Staff, and all officers and non-commissioned officers of the Territorial and Cadet Forces, being up to date and competent as instructors prior to the annual training of their units. SECTION II.—THE DEPARTMENT OF THE ADJUTANT-GENERAL TO THE FORCES. 18. Royal New Zealand Artillery. The establishment of officers of the regiment of Royal New Zealand Artillery is fourteen. The present strength is twenty, or six over establishment. Only five of these are on duty in New Zealand with the regiment, fourteen being on active service and one in the Expeditionary Force camps. The latter is a graduate of the Royal Military College of Australia, Duntroon. During the year four officers have been killed in action. The establishment of the regiment other than officers is 295. The present strength is 285. 153 non-commissioned officers and men are serving with the Expeditionary Force. During the year four non-commissioned officers and men have been killed in action. Applicants for enlistment who are of military age for the N.Z.E.F. arc not being accepted during the war, but a number of men who are unfit for. active service have been taken on temporarily in relief of those absent witli the Expeditionary Force. Four men returned from the Expeditionary Force invalided were found unfit for further service in the regiment, and have been discharged accordingly. 19. New Zealand Staff Corps. On the outbreak of war the New Zealand Staff Corps was eighty-four strong; since then seventeen cadets from the Duntroon College have been taken on strength : total, 101. Tin; following table shows the disposition of these in respect to the present war :-— Transferred to Royal New Zealand Artillery and on active service ... 10 Left New Zealand on active service ... ... ... ... ... 74 Now awaiting embarkation for active service ... ... ... ... 3 Retained in New Zealand to (ill special appointment ... ... ... 3 Retired ... ... ... ... ... ... ... ... 1 Unfit for service or over age ... ... ... ... ... 10 101 The following table shows the present disposition of seventy-four officers who left New Zealand on active service :— Killed in action ... ... ... ... ... ... 7 Died of disease ... ... ... ... ... ... 1 Still serving with the Expeditionary Force ... ... ... 45 Invalided to New Zealand and now disposed of as under :— Now on duty in Dominion ... ... ... ... ... 17 Retired ... ... ... ... ... ... ... 2 On leave pending retirement ... ... ... ... ] Still in hospital ... ... ... ... ... 1 — 21 74 At present there are twenty-nine cadets under instruction at the Royal Military College of Australia, Duntroon, who will receive commissions in the New Zealand Staff Corps as they qualify. • As the establishment at present authorized will not be sufficient to meet future requirements, an increase in the various ranks at the close of the war is under consideration, and it is proposed that a, number of vacancies for Lieutenants be thrown open to the warrant officers and noncommissioned officers of the R.N.Z.A. and N.Z.P.S. in recognition of their services in the commissioned ranks of the Expeditionary Force and in temporary appointments in the Dominion. It is proposed to make appointments to these vacancies on the results of a competitive examination.