H.—l9c

ROYAL COMMISSION ON DEFENCE DEPARTMENT EXPENDITURE, 1918.

MEMORANDUM BY THE MINISTER OF DEFENCE ON THE REPORT. 1. The report of the Commission " that in all essentials the Administration has succeeded " will, I am sure, be received with satisfaction throughout New Zealand. 2. The Government appreciates very much the suggestions and recommendations set oat in the report. These will be given every consideration, and where not already in operation will be adopted, if found economical and applicable in principle. 3. (a.) The suggestion to abolish the office of the Adjutant-General and appoint an Officer in Charge of Administration would not do away with the duties or work of the Adjutant-General's Branch. (b.) To transfer certain of the Adjutant-General's duties to the General Staff would be in conflict with agreements which have been come to at various Imperial Conferences and which aim at securing uniformity throughout the Empire in regard to methods and equipment. 4. In regard to nomenclature, the designations are in accordance with the Imperial arrangements to standardize all matters naval and military. Imperial Army Orders for April, 1918, indicate this. 5. The questions dealt with in paragraphs 3 and 4 will, however, be placed before the Imperial Army Council for advice. 6. In regard to the battalion system, early experience led to the adoption of the present reinforcement system as the best suited to meet local conditions .of recruiting, administration, &c. Moreover, it is deemed to be the most economical under the many varying conditions to which our reinforcements are subject. This matter is, however, being further considered, and those who advocated the battalion system will be invited to compare details of their contention with details of the present system, which has placed the New Zealand Forces abroad in the proud position they occupy to-day. 7. A conference of District Commanders and other officers will meet without delay to consider how the suggestions in the report can be applied to secure greater efficiency and economy. f Wellington, N.Z., 25th July, 1918, Minister of Defence