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H.—l9

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Forces, I feel confident in stating that the officers, warrant officers, and non-commissioned officers of the New Zealand Permanent Forces have attained to this high standard, and with very few exceptions — mainly due to lack, of opportunity to qualify- are, as a body, thoroughly competent for their administrative and instructional duties in peace, and will prove, as far as their limited numbers permit, an efficient and essential cadre for the New Zealand Military Forces should mobilization for war become necessary. . The retrenchment and subsequent resignations in the Permanent Forces have resulted in a corresponding increase in the work for those remaining in the service. Many, and particularly those engaged in instructional duties, are overworked, and, in addition to their constantly increasing daily duties, have to parade on a large proportion of holidays and evenings. This constant pressure of work and the improved prospects offered in civil life have resulted in forty-one, resignations from the Permanent Forces, and more are to be expected unless existing conditions are improved. Naturally it is the best men' who are offered the most inducement to leave the service. The recent approval to fill existing vacancies and to complete the establishment of the Permanent Forces is reassuring in this regard and will help to alleviate the present position. 3. Air Force Units. The formation of the undermentioned units was approved on the 14th June, 1923 : — (a.) New Zealand Permanent Air Force (to bo part of the Permanent Forces). (b.) New Zealand Air Force (to be part of the Territorial Force). (a.) New Zealand Permanent Air Force.. The present strength of this unit is four officers and seven other ranks, who, with the exception of one staff officer at General Headquarters, are employed at Wigram Aerodrome. This small staff was not engaged until late in the year, and it at once commenced the work of overhauling aircraft and engines in preparation for the annual refresher courses for officers of the New Zealand Air Force which commenced on the 31st January, 1920, and continued until the 24th March. The manner in which the old machines and engines stood up to the work is eloquent testimony to the care and efficiency of the staff. In addition, civil flying was undertaken by the Permanent Staff, and over £230 was taken in fares during February and March. During the period under review liaison has been maintained with the land Forces of Southern Command, and many flights have been carried out for purposes of co-operation with the Signal Corps and Artillery units. (b.) New Zealand Air Force. The strength of this unit now stands at 102 officers, the majority of whom have fully qualified in the Royal Air Force as service pilots, whilst the remainder have all received, partial training in that Force. Forty-eight officers were put through refresher training, comprising instruction in flying duties, theory of flight, rigging, aero-engines, wireless, Vickers and Lewis machine guns, and musketry. The courses were much more comprehensive than those of the previous year, but to be progressive, extra equipment must be provided. It was not possible to refresh pilots on seaplanes, as the New Zealand Flying School had reduced its staff to one of caretakers pending a decision by the Government upon the company's offer to sell its plant. (c.) Aircraft and Equipment. The machines gifted by the British Government in 1919 are rapidly becoming unserviceable through fair wcar-and-tear and require replacement. Three S.E. sa's (single-seater fighter) are on order and due to arrive shortly, but six new trainingmachines are required for Wigram Aerodrome, together with a flight of two-seater machines of service type. (d.) Aircraft Station at. Auckland. Both seaplanes and landplanes are essential for the defence of the commercial port of Auckland. Suitable aircraft will need to be purchased for that station when it is established, since there are no service type of seaplanes in the Dominion, training-seaplanes are few, and the only landplanes worth consideration are already at Wigram Aerodrome. For the purpose of economy it is necessary that the site of the Auckland Air-station should be, — (a.) Suitable for combined use of land and sea planes. (b.) Within a land defence system, (c.) Easily accessible by land and sea transport. 4. Territorial Force. The training laid down for the Territorial Force for the year was as follows : — (a.) Six consecutive whole-day parades. (b.) Six half-day parades, (c.) Twelve drills. This, though still inadequate, was a decided improvement on the training of the previous year, as it included six consecutive days' compulsory training. Unfortunately, the decision in this respect was not reached until the training-year was well advanced, and consequently some units carried out their annual training on the 1922-23 programme, in which the six days' consecutive training was optional.

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