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B. Forces handled by Department. pre-war. In 1914, before the war, the strength of the Defence Force was, — (a.) Territorial Foree —all ranks .. .. .. .. 33,000 (b.) Senior Cadets .. .. .. .. .. .. 30,000 (c.) Rifle Clubs .. .. .. .. .. .. 8,000 71,000 SINCE WAR COMMENCED. Territorial Force maintained, — (a.) Territorial Force .. .. .. .. 22,933 (6.) Senior Cadets .. .. .. .. ..30,668 (c.) Rifle Clubs .. .. .. .. .. 7,252 60,853 From August, 1914, to date, 1918, the lilxpeditionary Force requirements handled by the Defence Department were, — *(a.) Before September, 1.916, estimated number of men. handled between August, 1914, and September, 1916, rejected before entering into camp . . 50,000 *(&.) Before September, 1916, men discharged from camp as unfit for service abroad . . . . . . 4,476 (c.) After September, 1916, total who, although volunteered or drawn by ballot, were found on examination not medically Jit, or for other reasons were not sent to camp . . .. . . . . 75,355 129,831 (d.) Total gone abroad, in camp, or wearing uniform for general service .. .. .. .. ..111,055 301,739 * Before September, 11)16, recruiting was voluntary only. C. In the absence of a Naval Section in New Zealand, all sea transport fitting, equipping, and running the troop transports has been carried out by the Defence Department. We took evidence in the four principal military centres, winding up at General Headquarters ; our proceedings were open to the Press, and were fully reported. We also advertised in the daily newspapers in each centre, inviting all who cared so to do to come forward and give evidence ; so that the public were afforded full opportunity to tell all they might know. With special, satisfaction we desire to emphasize the fact that, with an expenditure of £40,000,000, we have discovered no case of fraud, embezzlement, or collusion, which, as far as we can ascertain, is a unique record. We have divided our report into the eleven sections set out in Your Excellency's Commission. 1. Headquarters and other Administrative Branches of the Service. Your Excellency, by virtue of your office as Governor-General, is Commander-in-Chief of the New Zealand Military Forces, and the Minister of Defence is in control of the Department and responsible to Parliament. Under him is the General Officer Commanding, through whom the policy of the Government is enforced, and to whom the Minister looks for advice. Under the General Officer should come the Quartermaster-General, responsible for all Administration ; but the two offices of General Officer Commanding and Quartermaster-General, since the departure of the Expeditionary Force, have been united in one man. The General Officer Commanding at that time went on active service in command of the New Zealand Division, and the most experienced officer had to be left behind —which was a serious blow for