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Nature and Strength of Force. The force proposed will consist of the following arms: (1) Cavalry Volunteers, (2) Artillery Volunteers, (3) Eifle Volunteers, (4) Naval Volunteers. The Board have considered it necessary to reduce largely in numbers the force proposed to be maintained, as compared with the numbers at present borne upon the rolls. They are of opinion that only such a strength should be kept up which, if in a thorough state of efficiency, will be sufficient for the duties they may be called upon to perform in support of naval defence, and in preventing a landing from an enemy's cruiser at the chief harbours and cities ; but, while this smaller force must be fully efficient, this can only be obtained by an extra expenditure per man. The margin for expenditure not being elastic, it becomes a sine qna non for the Board to render its proposals practical by keeping within the limits of the present estimates; hence the location of the future force will be only at such places as are liable to attack by an external foe. Fiest Line. To carry out these ends the Board propose that there shall be a small First Line, consisting of artillery and rifles, including officers and men, of 2,042 in number, together with a force of 530 cavalry, inclusive of officers, making a total of 2,572. The cavalry are provided to act as reconnoitring parties, patrols, and orderlies. The Volunteers of the First Line will receive extra remuneration; they will be fully equipped, so as to enable them to take the field on the shortest notice; and they will have greater facilities afforded them for instruction in all duties. Their uniforms and greatcoats will be provided by Government, a certain number of daylight drills will be enforced for the efficiency standard, and for these they will receive pay at the rate of 2s. 6d. for each drill, also a capitation grant of 10s. per annum for each efficient Volunteer, which will go to the funds of the battery or company to which they belong. In return they will be called upon to submit to a stricter discipline, to enrol themselves for a fixed period of three years, and to give, as a matter of duty, the fixed number of daylight drills as the only means of enabling the men to derive the full benefit of the extra expenditure the colony will incur for their instruction. DISTEIBTJTION OF FIEST LINE. The above force will be distributed and located at the chief ports from Auckland to Invercargill, as laid down in the regulations proposed by the Board. Second Line, or Supports. A Second Line is also provided, which the Board term " supports," as they will act in that position, being a well-trained body, ready to reinforce the First Line in an emergency. The strength of the Second Line is fixed at 1,827, inclusive of officers; it will consist of rifle companies and naval volunteers, and they will be enrolled for one year certain, and are only to be raised within a twenty-five mile radius of the head-quarters of the regiments of the First Line, with certain exceptions. The Volunteers of the Second Line will receive, in conjunction with those in the First Line, more regular and fuller instruction than at present, and have to conform to a stricter discipline, but they will not be called upon to attend enforced daylight drills. They will find their own uniform, and will receive a capitation grant at the rate of £1 10s. per efficient Volunteer per annum. DISTEICTS AND SUB-DISTRICTS. Certain districts and sub-districts are detailed, and all the companies enrolled upon the new system within any one district, both of the First and Second Lines, will be formed into an administrative regiment, to which will be allotted a commanding officer of the Volunteer Force, and a permanent staff consisting of a paid adjutant to be selected from officers who have served or are serving in the Imperial army, a staff sergeant, and drill instructors as per strength. (Vide proposed regulations.) Artillery. The artillery being already formed into a regiment would remain as at present, but they have been reduced both as regards the number of batteries, as also in the strength of men per battery. The batteries struck out are the battery at Invercargill, where at present there are two, the Queenstown or Lake District Battery, and the one at present at Gisborne; in place of this latter a rifle company has been substituted. Hitherto the artillery has been comprised of a large number of men sufficient indeed for the full complement of six field-guns per battery, but no battery has ever had anything like that number, and some batteries have had no guns at all. The Board, in reducing the number of men, have fixed the number of guns at three for each battery, and they strongly recommend the Government to complete all the batteries retained with guns up to this number as early as possible, and for each field-gun the necessary harness should be issued as part of the equipment. The Board also still further recommend that, as soon as the present allotted number of batteries are provided with guns, and are fully equipped, an extra battery be raised at Auckland, the reason being that in the South Island all the ports are in communication with each other by rail, and could thus assist each other with extra ordnance. Auckland is isolated, and there is no artillery within reach to afford extra aid in case of need. Cavalry. The cavalry retained in the North Island are six troops of fifty men each, with three officers per troop. They are all located in the neighbourhood of the disturbed districts; hence the Board have left them to be retained or reduced by the Government hereafter, as circumstances mav require. In the present arrangement they will be formed into a regiment, with a lieutenant-colonel in command. They are to receive a helmet, tunic, and cloak from Government, in addition to their present pay. In the South Island four troops of this arm have been allotted upon the same system as to uniform and pay as the above, with a major appointed to command. The troops are to be located as follows: One at Invercargill, one at Dunedin, and two in Canterbury. Engineers. In the proposals submitted, no provision is made for an engineer branch of the service, beyond the suggestion that No. 1 company in each regiment of infantry should consist exclusively of artizans, and

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