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11. NEW ZEALAND ARMY RIFLE ASSOCIATION. Financial limitations still prohibit the reintroduction of the annual meeting of this association. I record this fact with regret, as I regard these competitions as a very valuable stimulus to weapontraining efficiency, and as an event much prized by the Territorial Force. 12. TERRITORIAL FORCE ASSOCIATIONS. These associations have continued to render every possible assistance during the past year to the well-being of the Territorial Force. I desire to place on record both my personal appreciation and that of the Territorial Force of the efforts made by these public-spirited citizens, often at considerable inconvenience and expense to themselves, to further the interests of the citizen soldier. 13. FINANCE. For the year 1934-35 an appropriation of £532,151 was made for defence purposes, as compared with £283,703 for the previous year, the increase being necessary to provide for progress with the scheme of strengthening the air and coast defences of the Dominion, and to permit of certain measures being adopted for the encouragement of the Territorial Force, including the free issue of boots and payment for out-of-camp training, which were approved by the Government. Although every effort was made by the Department to have the work connected with the new defences sufficiently advanced to absorb the money voted, this was not possible, and the year finished with an under-expenditure of £66,919. This was due principally to the building programme being somewhat retarded through unforeseen causes, and to charges for aeroplanes and equipment on order from the Air Ministry not coming to hand as promptly as was expected. The actual liabilities as at the 31st- March, 1935, carried forward, amounted to £5,466 6s. 4d., and the commitments totalled £216,438. It may be mentioned that in carrying out the development programme at the Artillery Bases at Narrow Neck, Auckland, and Fort Dorset, Wellington, and at the R.N.Z.A.F. Base at Hobsonville, Auckland, and the Aerodrome at Wigram, near Christchurch, the Public Works Department, which has the work in hand, is availing itself of the contract system, as far as possible, and securing the benefit of the somewhat keen competition that exists amongst contractors at the present time to secure building work. The usual table showing the annual expenditure on the Land and Air Defences of the Dominion over the last eight years will be found in Appendix II of this report. I have the honour to be, Sir, Your obedient servant, W. L. H. Sinclair-Burgess, Major-General, Commanding N.Z. Military Forces.

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