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7. TERRITORIAL FORCE. (a) Reorganization of Units. Changes in the organization of the Force were effected on the Ist September, 1937, and are designed to enable it to carry out the following roles :— (a) The protection of main ports. (b) The production, 111 peace, of a field force of a strength sufficient to enable requisite expansion, if the necessity should arise. To fulfil these roles, the Territorial units are now grouped as follows :— (1) Fortress Troops— Two heavy batteries. Two Anti-aircraft batteries. Three Infantry battalions. (ii) Field Force Troops— Three Composite Mounted Rifles regiments. One Composite Mounted Rifles regiment (motorized). Three Composite Infantry battalions. Three Field Artillery brigades (less two 18 pdr. batteries). Two 3-7 in. Howitzer batteries. One Medium Artillery brigade. Three Field companies (Engineers). Three Signal Depots. Three Composite companies, N.Z. Army Service Corps. Three Field Ambulances. (iii) Otago University Medical Company. Infantry battalions of the Auckland, Wellington, and Canterbury Regiments, form the three Infantry battalions (Fortress Troops). A regimental depot is being formed by each of these three regiments to establish a nucleus of officers and N.C.O.'s for the formation of a second battalion when needed. The formation of composite units has been effected from existing Mounted Rifles regiments and Infantry battalions (other than Infantry battalions of the Auckland, Wellington, and Canterbury Regiments). The Composite Mounted Rifles Regiment (motorized) is designed to carry out the role of a Divisional Cavalry regiment and will consist of one squadron in each of the three military districts. All regiments retain their original identity, their bands, badges, colours, or guidons, and regimental property. (b) Special Reserve. This scheme was introduced in September, 1937, for the purpose of providing the necessary personnel for the heavy batteries at the forts and specialists for the three Infantry battalions included in the Fortress Troops. Single men between eighteen and thirty years are enlisted for three months' continuous training, at the conclusion of which they are posted to units of the Fortress Troops. For the next three years they attend their unit camp for ten consecutive days per annum. An additional obligation is to undertake to report for service in New Zealand in the event of a national emergency. During their three months' continuous training the men are paid Bs. per day, less 2s. 6d. for rations, &c.; and during annual camp (ten days a year) will receive 9s. a day with free rations, &c. While undergoing their three months' continuous training the men are encouraged to attend a Technical College and follow a course of their own selection ; this is free of charge. The numbers already enlisted for the Special Reserve are shown in Appendix I (6). (c) Training. The annual training of the Territorial Force is based on a directive issued at the beginning of each training year. The subject for study" this year has been the protection of defended ports and of vulnerable points, such as cable landings, wireless-stations, or oil-fuel installations, from naval or military landing parties. Strong emphasis has been placed on the use of motor transport as a means of moving reserves to threatened points beyond the marching limit of Mounted Rifles or Infantry. Many useful exercises were carried out, both during week-end and in annual camps, and the fact that these exercises were based on modern methods added greatly to the interest taken by all ranks. The use of district motor-transport pool, supplemented by hired transport, has been very beneficial to training, since it has made more time available for field training, avoided fatigue to the troops, and increased the number and variety of exercises carried out. All 18 pdr. field batteries attended camp as mechanized units. Their guns are now on pneumatic tires, and with the modern Army-type six-wheeled tractors are capable of keeping up with any motorized column. The attendance at camps has again been disappointing, the numbers attending being 433 officers and 2,692 other ranks, making a total of 3,125 all ranks, or 41 per cent, of the strength. On the other hand, of the above, 156 officers and 792 other ranks also attended a course of instruction, while an additional 237 officers and 919 other ranks attended a course of instruction but no camp. This means to say that 670 officers and 3,611 other ranks carried out at least six days' continuous training in a camp or at a course, a total of 4,281 all ranks, or 56 per cent, of the strength.

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