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Attendance at' annual camps was relatively satisfactory when the factors mitigating against a larger attendance are taken into consideration. These are, in order of importance, the difficulty of obtaining leave from employers or the reluctance of employees to ask for such leave, having regard to the effect such action might have upon the tenure of their employment, and, secondly, an abnormal season in parts of the South Island, which caused the absence of many seasonal workers who would otherwise have been present. As in the past, I would again appeal to employers for their co-operation in granting leave to their employees to attend camp. I realize that the incidence of sacrifice is uneven, but, apart from the question of the efficiency of the men so trained, it is only by attendance of the maximum number at camp that an economic return can be made for the money expended on training. The " overhead "is very little greater for a camp of 500 men than it is for one of 100 men, while the value in terms of technical efficiency is very materially increased. I do, however, desire to place on record my appreciation of the assistance I have received in this direction from a great many individual employers throughout the country. It is not too much to say that the attendance at camp of every man almost without exception represents a measure of sacrifice or inconvenience for the good of the State on the part of either a private employer or a Government Department. In this connection I desire to bring before your notice the Post and Telegraph Department, whose whole-hearted co-operation has been one of the most pleasurably outstanding features of the past difficult few years. During the year under review the New Zealand Army Dental Corps has been reorganized, and dental sections have been attached to each Field Ambulance. These sections have rendered valuable service during the annual camps of units to which they have been attached, by carrying out treatment sufficient to retain in camp soldiers who would otherwise have had to leave for attention elsewhere. The present strength of the Territorial Force, with its high turnover and the short service of those discharged, does not provide a reserve of trained soldiers, but it does permit of a relatively high degree of concentration on specialist training —e.g., machine gunners, mortar personnel, signallers, &c. The standard of training of specialists in the Territorial Force has never been higher than it is at present. Anti-gas training has been carried out to the limit of the resources available in the country. I have directed that anti-gas measures should be the subject of special study in the solution of all tactical problems during the forthcoming training-year. In spite of financial limitations, one week's continuous course of training for cadets (" barracks ") has been carried out at most secondary schools during the past year. In the Imperial Challenge Shield Competition, 1934, the entries for which from all parts of the Empire totalled 27,625, New Zealand cadets secured fourteen out of the ninety-two silver medals and eight out of the 140 bronze medals awarded by the National Rifle Association of Great Britain. Commenting upon this performance, the founder of the competition stated —" Although New Zealand takes no specially high prize, the all-round results are certainly most excellent, and reflect great credit on the New Zealand defence instructional staff and all others concerned." Two cadet rifle teams —St. Patrick's College, Silverstream, and the Otago Boys' High School — secured third and fourth places respectively in the Earl Roberts' Imperial Cadet Trophy Competition against seventeen selected teams from cadet units throughout the Empire. The standard of smallbore rifle shooting throughout all cadet units has been materially raised by the keen annual competition for the shields and medals donated by The Press (Christchurch) Co. 6. ORDNANCE SERVICES. (a) Duties. The Ordnance Services are responsible for the provision, distribution, repair, examination, and maintenance of small arms, machine guns, vehicles, clothing, equipment, and general stores ; the inspection and repair of armament and inspection of gun ammunition ; receipt, testing, storage, and issue of small-arms ammunition ; organization and control of ordnance workshops. Equipment and stores required for the Territorial Force have been maintained during the year in serviceable condition. Very careful attention has been paid to the inspection and testing of small-arms ammunition, some of the older stocks of which showed signs of serious deterioration. All ammunition issued for use in rifles has been carefully tested before issue, and ammunition found unfit for rifles has either been issued for use in machine guns or broken up, according to its condition. (b) Personnel. Officers. —It has not been possible, for financial reasons, to follow any progressive policy during the past few years in the appointment of officers to the N.Z.A.O.C. The officers of the corps are of two classes, administrative and technical, and the small numbers involved make it essential that appointments be made with careful regard to age and the necessity for technical training abroad. Two junior officers —one for administrative work and one for technical work—should be appointed as soon as funds permit, while one officer should attend, the Ordnance Mechanical Engineers' Course in England in 1936. Other Ranks (including civilians). —Special attention is being paid to the provision of armourers and instrument artificers. The position as regards armament-artificers is satisfactory, but appointments of young men for training as armourers and for instrument-repair work must be made as soon as practicable.

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