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The estimates for the year 1919-20 will be prepared on pre-war requirements under the Defence Act, awaiting development of policy for the future in regard to sea, air, and land defences, based on the Peace Treaty and general experience gained during the war. In this connection the formation of a representative Defence Committee directly advisory to the Government through the Minister of Defence to study the world's sea, land, and air strategical problems is worthy of consideration. In making this suggestion 1 have in mind, the following functions which such a Committee might fulfil : — (a.) To ensure the collection of strategical information, its expert and careful consideration in relation to New Zealand defence, and for the transmission of well-balanced and impartial advice to the Government: (b.) To enable the Commandant and Administrator of the Defence Forces to concentrate on their true functions of training and administering the Forces authorized by Parliament to a state of the highest possible efficiency : (c.) To assist in continuing the principles of coalition in regard to Defence matters which has proved so successful during the Great War : Id.) To continue the policy initiated during the war of co-ordination with business firms, factories, manufacturers, and producers, in order to ensure ready development and ample supplies of equipment, clothing, supplies and munitions, land and sea transport, &c, against any future mobilization : (c.) To ensure direct economy in all the above matters in respect to all services of Defence, both in peace and war. 1 have pleasure in again bringing to your notice the cordial co-operation of the various Departments of the State with the Defence Department, also the generally excellent and steady work of all ranks (military and civil) at General Headquarters, and the various stations throughout the Dominion. A. W. Robin, Major-General, The Hon. the Minister of Defence, Commanding N.Z. Military Forces.

SECTION 1.-THE DOMINION SECTION OF THE IMPERIAL GENERAL STAFF. Drills and Parades. When the Armistice was granted in November, 1918, the demobilization arrangements for the Expeditionary Force and a desire to inflict the least possible inconvenience to the private industries made it advisable to suspend the annual camps for training-year 1918-19. Although the cessation of training-camps will unquestionably result in diminished efficiency, it is hoped that the return of the Expeditionary Force will compensate for this by supplying the depleted ranks of the Territorial and Cadet units with war-trained officers and other ranks. Discipline and Efficiency of all Units. Throughout the Great War a general improvement in discipline was noticed annually, largely the product of patriotic spirit and also recruits with Cadet training. Courses of Instruction. Courses for senior officers of Staff Corps and Territorials were held as in past years by the Director of Military Training and by the Staff Officers in districts. Throughout the war these valuable courses have enabled all ranks to receive the benefit of the latest teachings in modern warfare from expert officers, the majority of whom had seen service at the front. This training proved of enormous value to those attending who afterwards joined the Expeditionary Force, and enabled a great advance to be made in the efficiency of officers and noncommissioned officers temporarily attached for duty with the Permanent Staff. The Cadet Force. A steady improvement has been made in the discipline and efficiency of the Cadet Force since the institution of the 1916 syllabus of training. The endeavour throughout the war was to send the Cadet into the Territorial Force as a trained recruit, with a satisfactory degree of discipline and individual efficiency. Similarly, the Territorial Force endeavoured to train its officers, non-commissioned officers, and Territorials to a degree of efficiency which would prove of benefit when they joined the Expeditionary Force. In order to assist civilian labour the training of the Cadet Force in country areas was suspended in 1917 for the duration of the war, with the exception of a quarterly muster parade. This suspension remains in force during the period of demobilization. The training of Cadets in town areas has been continued, in cases where undue hardship or essential industry required the exemption of Cadets from training, in which case ample arrangements have been made for this to be given. The importance of the Cadet Force to the efficiency and discipline of the Territorial Force cannot be exaggerated. During the Great War the training of the Cadet Force was seriously interfered with owing to lack of instructors and instructional equipment. The Cadet Force is therefore to be congratulated upon the fact that each year of the war saw its discipline increasing, a proof that the work given was of a satisfactory order, and that all ranks possessed a knowledge of the importance of their

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