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efficient and disciplined Defence Force which would alone be of value in the event of an attack. This was recognized by both the civilian and the soldier, especially in the case of those units whose members resided in country areas remote from drill centres. To carry instruction to such men proved a very costly operation without the possibility of correspondingly efficient, results, while the employer of labour complained that his employees, in order to attend a parade of one hour and a half, were required to be absent from their employment for three or four hours in order to get to the place of parade and to return. For these reasons, and also on account of the shortage of competent instructors, the Defence Department has, for the last three years, practically suspended the training in country districts. In addition to this, no Territorial camps have been held for the past two training-years. Although of only one week's duration, valuable results were obtained from these camps, and their loss is much to be regretted. Since the Armistice the training and general efficiency of the Forces has been further handicapped by unavoidable conditions, the chief of these being the shortage of the instructional staff, which, besides being reduced in strength by casualties during the war, was also called upon to perform duties connected with demobilization, and the general loss of interest in Territorial training which followed the cessation of hostilities. Now that the Staff Corps and the Permanent Staff have again been brought to full strength it is possible to improve the training of those units whose members are able to attend parades, and it is hoped that an adequate supply of rifles and equipment will shortly be available. Reports from all parts of the Dominion show that the Territorials are now showing much greater interest in their training. It is not, however, proposed to revert to the old system of sending instructors through back-country areas to try to train individuals, as this system has proved to be both expensive and unproductive of efficiency. Never in the history of the Dominion has there been such a large number of highly trained officers, non-commissioned officers, and men having long actual war experience as is now available for service if required. Their experience, if used for the training of the Citizen Army, will be of inestimable benefit, but unfortunately only a few are offering to continue their service in the Territorial Force under present conditions, the majority preferring to wait pending a scheme of reorganization. 3. The Cadet Force. In 1919 a new syllabus of Cadet training was issued by General Headquarters, reducing the amount of military instruction and adding other subjects making for the mental, moral, and physical improvement of those undergoing instruction. Reports have been received from all parts of the Dominion testifying to the excellence of this new system of Cadet training, which, by stimulating the Cadet interest and creating a spirit, of competition between individuals and units, is having a marked effect on the efficiency of the Cadet Force. The new system aims at. developing and strengthening the qualities of citizenship in every respect, recognizing that the primary requirement for good citizenship is a healthy physique and close attention to hygienic principles, particularly during those important and impressionable years of a youth's life between fourteen and eighteen. Several courses of military instruction (barracks) for Cadets were held in various schools throughout the Dominion with most beneficial results. These courses familiarize all ranks with the routine and duties of military life at a minimum of inconvenience and expense, while stimulating that spirit of competition between secondary-school units without which satisfactory results are unobtainable. Their value cannot be too strongly emphasized. At the parades held during the visit of His Royal Highness the Prince of Wales some of the Cadet companies showed a very high standard of training and discipline, and attracted veryfavourable comment. Unquestionably the outstanding feature of Defence training in New Zealand at present is iis Cadet system. 4. Rifle Clubs. Many Rifle Clubs throughout the Dominion have maintained their strength and enthusiasm, but they have been handicapped through the increased cost of ammunition and the inability of the Defence Department to provide them with new long rifle-barrels. Owing to the Rifle Clubs not using service rifles for rifle-shooting competitions, arrangements have had to be made to import specially manufactured rifle-barrels. Shipping difficulties prevented these from arriving in time for the Dominion Rifle Association meeting, but adequate supplies are now available. Great credit is due to Etirle Club members who have retained their keenness for musketry, and at the Dominion Rifle Meeting at Trentham in March, 1920, the Rifle Clubs showed thai they had succeeded in maintaining and developing many fine shots. These clubs, while serving a useful purpose by creating an interest in rifle shooting, cannot be used in war as an integral part of the Military Forces. The expenditure on their behalf should therefore be considered separately from the Defence vote. I recommend that a special item to cover the whole cost of Rifle Clubs should be provided for, and that this amount be administered by a council consisting of Rifle Club representatives and not by the Defence Department. 5. Postings. Postings for the year 1919-20 were carried out on the same lines as for the preceding year, except that authority' was given to transfer to the Reserve all members of the Territorial Force who had service overseas during the war of 1914-19, whether they were eligible to be so transferred on account of their age or not. Those who were desirous of continuing their service in the Territorial Force, however, have been permitted to do so. It will be necessary this year to transfer to the Reserve a number of Territorials, over and above the number due for sucii transfer on account of age. in order that room may be found for those who have completed their service in the Senior Cadets, and also to avoid the strength of the Territorial Force exceeding the authorized establishment. _ Selections under this category will be made from the most efficient of those with the longest service. From the Ist April, 1919, to the 31st March, 1920, the total number of registrations throughout the Dominion was 10,260.

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