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There lias been a distinct improvement in attendances at week-end training, where valuable preparatory work was carried out leading up to the exercises to be carried out later in annual camp. The training of the Special Reserve has been most satisfactory, and will lead to the building-up of an efficient reserve capable of being called up immediately in the event of a national emergency. Their training has been that required by specialists in the fortress units of the Artillery and Infantry. The shooting carried out by Artillery reservists at the end of their three months' course has been satisfactory. A draft of fifty Infantry reservists attended the camp of the Canterbury Battalion. Their fieldwork was of a high order. 8. SCHOOLS OF INSTRUCTION. (a) Abmy School. The Army School at Trentham has been established, and has been fully occupied during the year with courses of instruction for the staff and recruits for the Royal New Zealand Artillery and Royal New Zealand Air Force. Two officers and one N.C.0., who recently returned from training in England, have been posted for duty with this establishment. I am satisfied that the training is basad on the most modern ideas, and excellent progress has been achieved. A total of 91 Army officers and N.C.O.'s and other ranks have received training at this school. In addition, 87 recruits for the Royal New Zealand Artillery and 263 recuits for the Royal New Zealand Air Force have been trained. Courses have also been held for officers and N.C.O's of the Engineers, Signals, and A.S.C., since the small size of these units makes uneconomical the carrying-out of their training at District Schools. A total of 39 officers and 123 N.C.O.'s attended these courses. (b) District Schools. During the year District Schools of Instruction have been established at Narrow Neck, Trentham, and Burnham. The object of these schools is to carry out various courses of instruction for officers and other ranks of the Territorial Force. A total of 2,054 officers and other ranks have attended a six-days' course. The training carried out at these schools will be of the utmost value to all ranks in the Territorial Force, but I would point out that its full results will become apparent only during the ensuing training year. 9. ADMINISTRATIVE SERVICES : ORDNANCE. (a) Duties. The duties of the N.Z. Army Ordnance Corps were described in the reports for 1931-35 and 1936-37. The constant changes in organization of units and in equipment generally, as adopted in England, have very much complicated and increased the Ordnance work in New Zealand. Much remains to be done in the repair, maintenance, and modernization of arms and equipment, in the receipt, storage, and issue of stores and equipment from abroad, and in preparation for mobilization. (b) Personnel. Officers. —Ordnance officers require a high standard of technical training, and educational facilities must be provided years in advance to produce trained replacements. Other Ranks (including Civilians). —An increase in personnel is required in the armament and armourer sections, clerical division, and in storemen and tradesmen in the general division, necessitated by the recent and pending increase in armament, instruments, and equipment generally, and in the proposed further distribution of mobilization equipment to districts. (c) Credits. The sum of £24,776 has been received as credits for the sale of rifles, ammunition, and cordite, cloth and trimmings to contractors, obsolete and unserviceable stores, waste products, &c. (d) Arms. Good progress has been made with the stripping, cleaning, and preservation of rifles S.M.L.E., Mark lII*. The stock of barrels bought in 1920 for sale to rifle clubs has now become exhausted. The question of the provision of a suitable barrel was referred to the National Rifle Association, and, as a result of the recommendation received, inquiries are being made from Australia regarding the provision of such a barrel. (e) Small-arms Ammunition. Casualty proof for ammunition held in magazines throughout the Dominion manufactured between the years 1929-33 was carried out, and all ammunition tested was passed as .fit for rifle use. (/) Clothing. The provision of a blue uniform for the Territorial Force has been approved. Four thousand uniforms are being manufactured for issue this year.

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