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E E POE T. Your Committee has the honour to report:— 1. That it has considered a proposed scheme of organization and training of the New Zealand Military Forces prepared by the General Officer Commanding (Major-General Sir B. W. Chaytor, K.C.M.G., X.C.V.0"., C.B.,'A.D.C), submitted to it by the Hon. the Minister of Defence. 2. The General Officer Commanding was present during the consideration of the scheme and fully explained his proposals. 3. The cost of the scheme when fully established will be close on £600,000 per annum, and while the present high cost of all commodities continues it cannot be much reduced without loss of efficiency ; but this estimate provides for harbour defence, which is a naval as well as a military requirement, and for the physical training of those unfit for service in the Territorial Force, which is a " national efficiency " and not a " Defence " requirement. It does not, however, provide for the cost of aviation. For the next two years it is estimated that the cost will be under £500,000. In addition, with universal training, the cost of the " Cadet " and the eighteen-nineteen year " general " or " recruit " training must increase with the population. 4. The system of organization and training as finally agreed upon with the concurrence and approval of the General Officer Commanding is as follows : — Liability foe Training. Senior Cadets. —From fourteen years of age (or date of leaving primary school, if later) to eighteen years of age, as at present. General or Recruit Training. —-From eighteen to nineteen years of age. Territorial Force (in the case of those posted). —From nineteen to twenty-two years of age. Reserve. —Those between nineteen and thirty years of age who are not serving in the Territorial Force. The whole training of those not required for the Territorial Force to be completed in their eighteenth-nineteenth year. Any Cadet may, on the grounds that the training will interfere with his studies, claim and be given permission to postpone his recruit or general training from year to year, but in such case he will be required to complete the full period of general or Territorial training before being posted to the Reserve. Any Cadet may, if medically unfit to benefit by the training, be put back from year to year, but in such case his liability for training will not be extended beyond his twenty-second year. No exemption from training to be given except to those certified by Medical Board as unfit to benefit by a course of physical training, but any who object on conscientious grounds to military training to be allowed to do extra physical or general training in lieu of any purely military training. Training. Senior Cadets. —Twelve half-day parades, twenty evening drills, and prescribed course of musketry. Attendance to be compulsory for all Cadets who live within three miles of a drill centre, but as a rule drills will not be held at centres where less than twenty-four Cadets attend. From fourteen to sixteen years of age, training to be individual —mainly physical and squad drill. From sixteen to eighteen years of age, full training up to platoon standard to be given. Musketry course to be mainly with the -22" rifle. During the last quarter of a Cadet year all those who are due to pass out will be classified as under: — (a) Those who are well developed and who have reached a good standard of training ; (b) Those who are less so, but who have reached a fairly satisfactory standard; (c) Those who have done no training, or who have not benefited by that which they have done; and (d) Those who are physically unfit for service in the Territorial Force. Provisional posting arrangements will be made. General or Recruit Training.- —This will be carried out in district concentration camps by thoroughly qualified Staff Corps or Permanent Staff Instructors. Cadets will be called up in batches, and can therefore, in most cases, train at the date most convenient to themselves. Cadets classified as (a) will do two weeks' training for the arm of the service to which posted; those classified as (b) and (c) will train until they reach (a) standard, and then do two weeks' training for the arm of the service to which posted (maximum period, six weeks); those classified (d) will do a physical-training course of six weeks' duration, unless certified by a Medical Board as unfit to benefit by such a course. Cadets will be classified each week, and no one who has made good progress will be kept back on account of others in his squad being backward.