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EXTRACT FROM THE REPORT OF THE INSPECTOR-GENERAL, NEW ZEALAND DEFENCE FORCES (COLONEL R. H. DAVIES). The Right Hon. the Minister of Defence. Sir,— 29th May, 1908. I have the honour to submit the following annual report on the forces of New Zealand:—I have now, since my appointment as Inspector-General, inspected (with two or three exceptions which circumstances have rendered unavoidable) every adult corps of every arm of the service in the Dominion and nearly every company of Defence cadets. I have endeavoured by travelling almost continuously for more than a year to see them under the circumstances most favourable to the maximum attendance possible— i.e., at their own corps headquarters, and after as long notice as possible, in all cases ample; and have left the selection of dates, places, and hours, as far as possible in the hands of the Officers Commanding Districts, who should be thoroughly acquainted with local circumstances. I quite believe that Commanding Officers and all those interested have in almost all cases done their best to insure as large musters as possible for these inspections, and I feel quite confident that the total number I have seen under these conditions most favourable to good attendances represents approximately the maximum that can be said to do any real work. This opinion is confirmed by the fact that inspection reports of their own inspections show that Officers Commanding Districts have seen considerably fewer men during the same period than I have. Harboub Defences. I have inspected all the fortifications in the Dominion and have found, on all occasions, that the works and armaments are very well kept and cared for by the Permanent Force. New works are in progress in Wellington and Auckland (the details of which it is not advisable to enter into in this report), the former of which will be completed in a comparatively short time. The latter, owing to the conditions under which it is being carried out, will take much longer. Permanent Force. In my last report I stated that the recommendations for the organization of the R.N.Z.A. and R.N.Z.E. which were made by the Council of Defence would no doubt put the Force in a thoroughly satisfactory state. It has not been found possible to complete all these arrangements yet, or at any rate a sufficient time has not elapsed for any effect to appear, the officer selected to command not yet having commenced his duties. I can therefore-only repeat my former statement. In most respects the Force is in an entirely satisfactory state, and officers, N.C.O.s, and men have carried out their duties in a thoroughly satisfactory manner. It is to be hoped that the new regulations with regard to clothing will soon have the effect of insuring uniformity, which is absolutely essential and does not add to expense. Volunteers. I have inspected 246 separate corps, including Defence cadets. This includes every live adult corps of every arm of the service in the Dominion, except three, which, owing to unavoidable circumstances, I have not yet been able to inspect, but which I intend to see shortly, and a few corps (mounted rifles and infantry), in process of disbandment at the time of my visit to the districts. Also a few cadets corps in Auckland which could not be paraded owing to the school holidays while I was in that district. Several of these corps I have had an opportunity of inspecting more than once, and whenever possible I have also seen them in the field by daylight, but the detailed return which follows gives the result of one inspection only of each corps, and in all cases the one at which there was the largest muster present, in order to show the numbers that I have actually seen, without duplicating.