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send the Cadet into the Territorial Force as a trained recruit, and in the Territorial Force the desire has been to send its officers, N.C.O.s, and soldiers into the Expeditionary Force with a satisfactory standard of discipline and individual efficiency. In this way the Cadet and Territorial Forces have directly contributed in a large degree to the discipline and efficiency of the Expeditionary Force. 4. Staff and District Exercises. District exercises for the instruction of senior Staff, Territorial Force, and Cadet officers were held in the four military districts, as in past years, under tho personal guidance and instruction of the Director of Military Training. These district exercises are held by a Headquarters officer in order to ensure a uniform system of training throughout the Territorial and Cadet Forces, and to allow the Headquarters Staff to gain direct touch with all senior officers in the Dominion. By this means the General Staff at Headquarters is made acquainted with the views of those officers upon whom the efficiency of the Dominion Forces depends. These officers arc encouraged in every way to hold similar regimental exercises for the instruction of their officers and N.C.O.s. In addition, each district holds courses of instruction for officers and N.C.O.s of the Permanent and Temporary Staff, and for the instruction of officers and N.C.O.s of Territorial and Cadet, units prior to examination and to the annual camps. Voluntary courses of instruction for officers and N.C.O.s have been held in certain groups with great success : particularly is this the case with tho Wellington District. 5. Mounted Rifles. The majority of the rank and file of Mounted Rifle units are recruits of this or last year's postings. Owing to the facts that a large percentage of New-Zealand ers are able to ride, and that the present war requires expert knowledge of dismounted action, and the expenses connected with the supply of horses, it was considered advisable to dispense with mounted training during the continuance of the war. By this means a very considerable financial saving has been effected, while the improvement made in dismounted training has more than compensated for the loss of training in mounted duty. Like all other units, a steady flow of officers, N.C.O.s, and Territorials to the Expeditionary Force has reduced the establishments of all Mounted units. 6. Territorial Field Artillery. (a.) Field Artillery Cadres. These cadres possess a large percentage of temporary ranks enlisted from returned soldiers and men unfit for the Expeditionary Force. They have been put through a course of training at Wellington, and are now performing satisfactory duty with the various cadres. This has enabled the majority of the Royal New Zealand Artillery (Field Section) to join the Expeditionary Force. (b.) Territorial Field Artillery. Satisfactory training has been performed during the past year, although the Artillery units are handicapped in many ways. Considering the personnel is practically composed of recruits, the standard of efficiency is very good. The prominent feature of tho Field Artillery batteries is the soldierly spirit which exists. This spirit is reflected very noticeably in the Reinforcement drafts of the Expeditionary Force In accordance with the Department's policy of economy, few horses were available for Field Artillery camps, but the best work was done under the circumstances. The training given the Territorial Force in such, a highly technical unit as Artillery proves invaluable when its members join the Expeditionary Force. 7. Royal New Zealand Artillery. Training. Owing to fifteen out of twenty officers, and 164 out of 280 other ranks, being away with the Expeditionary Force, the training of those left behind has suffered to a certain extent, but the high state of efficiency attained prior to the war has stood them in good stead and enabled them stiil to maintain a reasonable standard of efficiency, though less time has been available for training. The training of Home Service men attached to tho Royal New Zealand Artillery has been extremely difficult owing to shortage of men, and to many of those available being physically or mentally unsuitable. However, a slight improvement has been made in efficiency during the year, especially on stations where sufficient men have been found to nearly complete establishments, and it is hoped that certain proposals now under consideration by the Adjutant-General's Branch will render it possible shortly to attain efficiency at all stations. 8. Garrison Artillery. Like all other units, the Garrison Artillery companies throughout New Zealand have been embarrassed throughout the last military year by the drafting to the Expeditionary Force of the bulk of the trained personnel, including most of the young non-commissioned officers. The specialists (range-takers, signallers, gun-layers, electricians, and engine-drivers) have also been very considerably depleted. Officers' and non-commissioned officers' classes have been held, and were well attended, and efforts are thus being made to make good the losses sustained by the constant flow of trained men to the Expeditionary Force. Instructional practices were carried out by most companies with satisfactory results.