H.—l9

6

Imperial Eeserve. I regret that the suggestions I put forward regarding the formation of an Imperial Eeserve do not appear to have been found practicable. The favourable opportunity for the formation of such a Eeserve seems now to have passed, most of the men who served in South Africa having dispersed to occupations in this and in other countries. Should a strain on the Empire's resources again occur, the absence of an Imperial Eeserve will be felt, and will occasion extra expense in money and men. School of Instruction. The School of Instruction is doing good work. Since the Ist April, 1902, 375 officers and non-commissioned officers have passed through courses. The cost of the school has been reduced from £9 10s. 3d. to £4 15s. per head, and the system of carrying on instruction simultaneously at different centres, not only enables a very much larger number of officers and non-commissioned officers to attend; it also reduces the expenditure. The courses of instruction have been carried out as far as possible in accordance with the syllabus laid down in the Volunteer Regulations, though in the cases of some candidates it becomes necessary to devote a considerable amount of time to instruction of a very elementary nature, thus curtailing the more advanced instruction which it is the special function of the school to impart. This must happen, for where the general efficiency of the officers and non-commissioned officers is low, it would be impolitic to reject candidates for the sole reason that they were not acquainted with the elements of their work. Endeavour has, in such cases, been made to improve their knowledge. Generally speaking, it is found that candidates are anxious to learn when once they have realised their needs. They have, with a very few exceptions, been regular in attendance, and have done their best to profit by instruction. It is to be regretted that more senior officers do not attend the school. In many cases the acting-lieutenants go through the courses, thereby learning methods which are unknown to their senior officers. In course of time I have no doubt that a very considerable improvement in the efficiency of corps will show itself from the instruction given at the school. I have little difficulty at inspections of corps in recognising those officers who have attended the School of Instruction. Signalling. A signalling corps would be an important accession to the Defence Forces, and the formation of one is under consideration. If such could be raised from Post and Telegraph employees it should soon become an efficient unit, and the value of such a corps in war is too well known to require further reference to it here. It is very much better to have signallers trained by corps than to have men in various units educated to this work. The latter are, even in a regular army, perpetually changing, and systematic instruction- is difficult. In a Volunteer Force these disabilities would be multiplied a hundred-fold, and the men have not the time to learn their ordinary work and signalling as well. Army Service Corps. A company in each headquarters of districts trained to the work of supply and transport in the field would establish the nucleus of a service that is indispensable in war. It is hoped these companies may shortly be formed. The numbers might be safely limited to those requisite for the supply of men to fill the responsible positions; the rank and file, so to speak, could be recruited from the various trades on the threatened outbreak of hostilities, and would require little or no instruction in their duties. Drill-halls and Eifle Ranges. Generally speaking, corps are well provided for in this matter of drill-halls. Oamaru, however, is an exception, and a very inadequate one exists there. It is a good Volunteering centre, and it is important that a suitable hall should exist. An excellent drill-hall has been completed at Auckland, and a fresh impetus has thus been given to Volunteering thereby. The drill-shed at Christchurch was burnt down in February. The battery harness and Queen's Cadets equipment were lost. From occurrences about the same time it would appear that this was the work of an incendiary. Good work was done at the fire by the E Battery. During the past year nineteen new rifle ranges have been arranged for, and it has been found necessary to close three other ranges as unsuitable. Generally speaking, corps are well provided for in the matter of ranges. Ammunition. It is satisfactory to be able to report that orders for the establishment of a reserve supply of small-arm ammunition have been given. It is to be hoped that this reserve will, as finances admit of it, be brought up to adequate requirements. The storage of ammunition should, as far as possible, be decentralised. The quality of the small-arm ammunition supplied by the Colonial Ammunition Company continues to be satisfactory. It is a matter for regret that the capacity for supply of small-arm ammunition of this company is not greater, and that no facilities for the manufacture of gunammunition exist. The price of small-arm ammunition continues unreduced. Gaudet ammunition, however, is now manufactured in the colony, and is comparatively cheap. I regret that it has apparently been found necessary to curtail the annual practice supply of gun-ammunition.