H.—l9,

When the quota now due for transfer to the Reserve has been eliminated, the remainder of the Territorial Force, together with all Cadets becoming eligible for Territorial training, will be classified in certain graded categories of physical development, and only those of the highest physical standard and who are actually required to complete units to their respective peace establishment will be posted to the Territorial Force, any surplus to these requirements will be posted to the Non-effective List. During the period which has elapsed since the war many important developments have taken place in military armament and equipment. After exhaustive experiments and trial by the War Office some of this new equipment has now been standardized and incorporated as part of the war equipment of the Military Forces. In order that the training of the Territorial Force of this Dominion should be brought up to date, the time has now arrived when certain nucleus units should be formed and equipment provided, so that our Military Forces shall become familiar with the new armament, armoured and mechanized weapons and vehicles with which they will be equipped and have to handle in war. To provide for our initial requirements in this direction it will be necessary to divert portion of the Defence vote for this purpose, and correspondingly to reduce part of our training expenditure. With this object, and for the reasons previously stated, the Territorial Force will be reduced to peace establishment during the current year, and, in addition, to effect a further saving, camp training will not be required from the first-year recruits of Territorial units. The standard of recruits for the Territorial Force being higher should result in more progressive training being carried out during the first year. The result will be a higher-trained soldier going with his unit to camp. More advanced training will be possible, and a higher standard reached. Therefore, after very careful consideration, I feel confident that the existing interest, esprit de corps, and efficiency of our Territorial units will not suffer, and that the fighting-value of the N.Z. Field Force as a whole will be increased by these measures. The foregoing reduction and changes will in no way affect the present establishment and higher training required from the officers, warrant and non-commissioned officers of the Territorial Force, or of those seconded for service with their affiliated Cadet units. As at present, all officers and noncommissioned officers will be required to attend the camps and special course of instruction of their unit held during their Territorial service. A very complete series of special courses of instruction for selected officers and non-commissioned officers has been included in the obligatory training laid down for the coming year. These special courses are designed to provide more advanced and progressive tactical instruction to fit them for their responsible duties as leaders and instructors of the men they command in peace and may be called upon to lead in war. It is unnecessary for me to again stress the great importance I attach to the more advanced training of the officers and non-commissioned officers of the Territorial Force, and also those serving with our Cadet units. Every encouragement should be given them to qualify for their responsible duties. It is hoped that during the coming camp training we shall be able to offer to the senior noncommissioned officers certain financial recognition and encouragement to continue their service beyond the age of twenty-one, when normally they would transfer to the Reserve. The greatest care has been exercised in arranging for this special training of the officers and non-commissioned officers, both in selecting the actual period of courses and the numbers attending, so as to interfere as little as possible with the civil vocation of those required to attend and the requirements of employers. Speaking generally, employers have been most helpful in granting leave to their employees who are called upon to serve in the Territorial Force, and I feel sure that they will continue to assist by granting leave without prejudice to those in their service who are required to give extra time in preparation for their higher and more responsible duties as officers and noncommissioned officers in the N.Z. Territorial Force. (c) Regimental Colours and Battle Honours. The N.Z. Infantry Regiments have for some years had the honour of carrying colours ; the Mounted Rifle Regiments have not enjoyed this privilege. In the British Army the Household Cavalry and the Dragon Guards carry standards, and the Dragoons carry guidons. Hussar and Lancer regiments do not carry either. His Majesty the King has recently been graciously pleased to approve the carrying of guidons by N.Z. Mounted Rifle Regiments, and the emblazoning thereon of ten of the battle honours earned in the Great War. This honour is greatly appreciated. (d) Medical Corps. (i) Organization. —A new unit has been formed during the year at the Medical School of the Otago University, known as the Otago University Company, N.Z.M.C. This company is somewhat similar to the Otago University Officers' Training Corps which existed from 1916 to 1922, and was then disbanded owing to financial stringency. It is formed to give special training to medical and dental students from whom the future supply of Medical and Dental Officers will come. The new company has the support of the medical profession, and is commanded by Lieut.-Colonel C. E. Hercus, D.5.0., 0.8. E., M.8., N.Z.M.C., Professor of Hygiene at the University. Its present strength is three officers and sixty-three other ranks. (ii) Training.—Two innovations have been made this year in connection with the training of the N.Z. Medical Corps. By arrangement with the Public Hospital Boards and Superintendents of Hospitals at Auckland, Wellington, and Christchurch, twenty selected men from each of the Medical Depots have attended the public hospitals for six days' continuous training as nursing orderlies in lieu of camp training. This arrangement has worked very well, and the men who were so trained showed great interest and keenness. It is under consideration to extend the scope of the scheme. The other innovation was the sending of selected men to technical schools for courses of invalid cookery. The evenings thus spent at technical schools were counted in lieu of evening drills.

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