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said two weeks. When in camp officers, non-commissioned officers, and privates shall be paid such amounts as are prescribed by regulations. The Eeserve shall be formed only upon condition that the Imperial Government shall provide the capital required to purchase the requisite field batteries, rifles, and equipment of the force, the colony paying a sum equal to one-half the interest upon such capital. The Imperial Government to provide all necessary horses for the Eeserve when on service beyond the colony, but when in the colony the officers and men to provide their own horses. The payment of capitation and the payment of the Eeserve when in camp in the colony to be adjusted between the Imperial authorities and the Colonial Government on a population or other equitable basis. When on service outside the colony, within limits to be prescribed by Act of Parliament, the Imperial Government to pay the whole cost connected therewith. The Eeserve Force to be liable for service as agreed upon between the Imperial and Colonial Governments; such agreement to be subject to confirmation and ratification by the New Zealand Parliament. The number of such Eeserve Force shall not exceed, at the commencement, two thousand; one-half at least to be field artillery and the other half to be mounted rifles. The pay of the officers and men when on service outside the colony shall not be less than that which is being paid to the Fifth Contingent at present serving in South Africa. Eifle Clubs. 13. Your Committee are of opinion that the formation of rifle clubs should be encouraged as a part of the defence system of the colony, and upon conditions somewhat as follows :— A club should consist of not less than twenty or more than sixty members; and, in localities where Volunteer corps have been formed, only ex-Volunteers who have had not less than three years' efficient service and are over thirty years of age should be enrolled. In localities where there are no Volunteer corps, rifle clubs may enrol members who have not had Volunteer service; but no rifle club should be established within five miles of the headquarters of a Volunteer corps. Members of rifle clubs should, where practicable, attend a prescribed number of drills and parades in the course of the year, the instruction being in respect to handling arms and firingexercise. The Government to supply rifles and ammunition to enrolled members of rifle clubs at cost price. After one year's enrolment members of rifle clubs shall be tested at target-practice, and on being able to make the minimum number of marks at the prescribed ranges, and having attended the prescribed number of drills and parades, they shall be entitled to receive a certificate as being efficient. For the first year every enrolled member of a rifle club shall receive a free grant of fifty rounds of ammunition; and thereafter to every efficient member of a rifle club there shall be allowed a free grant of one hundred rounds of ammunition, to be used at matches or at practice. Members of rifle clubs also to have concession in the shape of free railway-passes when attending rifle association competitions. Eifle clubs shall form part of the battalion of the Volunteer District in which they are located, and be subject to the orders of the officer commanding such district, and shall be liable for active service on the declaration of war. Cadet Coeps. 14. Your Committee are of opinion that cadet corps in connection with the various schools in the colony should be established and encouraged. They should be under the control of the Education Boards and the Education Department. The Defence Department to supply a limited number of carbines and a certain quantity of ammunition for the use of the elder boys in school corps. In addition to school cadet corps, your Committee recommend the formation of cadet corps to consist of youths who have left school, but who are not old enough to join a Volunteer corps. These corps should be under the Defence Department, and subject to regulations to be prescribed. Defence Stoees. 15. In the opinion of your Committee, matters of finance, the ordering and receipt of military stores, should belong to the department of the Under-Secretary for Defence; on arrrival in the central store they should be issued by that department to the Commander of the Forces, who should be responsible for seeing that the minimum war standard of such stores is maintained; in addition to the central receiving-store in Wellington, there should be stores at the four chief Volunteer centres, so that the stores from the receiving-store could be sent to each centre by the Commander of the Forces. The Commander of the Forces should report to the Minister quarterly as to the stores in hand and the amounts required to bring them up to the minimum war standard. Finance. 16. Your Committee recommend that the Imperial authorities be applied to by the Government of the colony to advance the capital necessary to enable the colony to carry out such of the above recommendations as may be adopted by Parliament, and upon the terms set forth in the statement made in the House of Eepresentatives on the 20th July, 1900, by the Eight Hon. E. J. Seddon, Premier and Minister of Defence, referred to in the early portion of this report.