H.—l9

2

(c.) The training to be carried out by a highly trained permanent staff on a progressive system as under :— Cadets : Physical and musketry training and military drill, up to platoon training. *General Training Section (youths in nineteenth year of age) : Physical and musketry training and military drill up to standard required in a company. Those who are medically unfit for posting to Territorial Force to do physical training only. Territorial Force (officers and non-commissioned officers) : Special courses of instruction. Territorial Force units : Limited number of drills throughout the year ; annual training in camp.* (ii.) Organization. (a.) A small but highly trained permanent corps of officers and non-commissioned officers to be maintained to carry out the administration and training of the Territorial Force and Cadets. (b.) Other Permanent Forces to be reduced to only sufficient personnel to provide for the care and maintenance of Defence works, war material, and stores. (c.) The Territorial Force to consist of one division, three Mounted Rifle brigades, heavy and antiaircraft batteries, and units for garrisons of defended ports at a peace strength equal to full war establishment of officers, warrant officers, and sergeants, and 50 per cent, of war establishment of other ranks. This Force to be equally divided into three commands, each subdivided into four regimental districts, each of which will furnish one Infantry battalion and a proportion of other troops. Mobilization will thus be simplified, and in a national emergency each regimental district could provide extra battalions up to the extent of .the man-power and equipment available. (d.) Provision for a strong reserve by training all youths in excess of those required for the Territorial Force, (c.) The organization of an Air Force, proposals for which are now under consideration. (/.) Cadets in each area to be organized into battalions to facilitate economy in administration. (g.) Rifle shooting to receive greater encouragement by removing the restriction that now prevents members of the Permanent and Territorial Forces from joining Rifle Clubs, by the granting of further concessions in regard to supply of ammunition at reduced rates, and by allowing Rifle Clubs to manage their own affairs. (h.) Employees in the various administrative branches of the Department to be reduced to the lowest possible strength compatible with efficiency. Those employees who will not be required to serve in a military capacity on mobilization to be placed on a civil basis. In the carrying-out of this reorganization it has unfortunately been necessary to dispense- with the services of a number of permanent officers and non-commissioned officers surplus to establishment, and to reduce the number of units in the Territorial Force. The present organization, however, is better adapted to the needs of modern war ; it will be more economical to administer, and, in the event of a national emergency, can be mobilized more quickly and effectively than the pre-war military organization. 2. Strength oe N.Z. Military Forces. (i.) Permanent Force. The various branches of the Permanent Forces were expanded during the late war by the appointment of Territorial officers and other ranks. These latter have been demobilized as rapidly as the decreasing post-war activities would permit, but no further reductions can be made while the military hospitals and sanatoria continue to be administered by the Defence Department. The following table shows the strength and reductions of the various arms during the past year : —

Total reduction in Permanent Forces during the above-mentioned period totals 35 officers and 243 other ranks. During the same period the services of approximately 400 civil personnel have also been dispensed with.

* These, for financial reasons, are not being carried out this year, except the annual training in camp for officers and non-commissioned officers. f Hon. lieutenants. J Works Section formed in November, 1920, from personnel of N.Z. Army Ordnance department, by whom maintenance was formerly carried out.

Strength, 30th June, 1920. Strength, 30th June, 1921. Officers. Other Ranks. _J Officers. Other Ranks. SI.Z. Staff Corps SI.Z. Permanent Staff Royal N.Z. Artillery ST.Z. Ordnance Corps ST.Z. Pay Corps SI.Z. Army Service Corps ST.Z. Engineers (Works Section for maintenance of buildings, camps, and hospitals) 114 22f 27 14 11 3 186 231 377 33 92 98 20f 158 20 188 9 165 7 24 2 87 54$ Totals 191 919 156 676