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C.O. 885

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between the Imperial and Colonial Governments; such agreement to be subject to confirmation and ratification by the New Zealand Parliament. The number of such Reserve Force shall not exceed, at the commencement. two thousand; one half at least to be field artillery and the other half to be mounted rifles. The pay of the officers and men when on service outside the colony shall not be less than that which is being paid to the Fifth Contingent at present serving in South Africa.

RIFLE CLUBS.

18 Your Committee are of opinion that the formation of ritle clubs should be encouraged as a part of the defence system of the colony, and upon conditions somewhat as follows:-

A club should consist of not less than twenty or more than sixty members; and, in localities where Volunteer corps have been formed, only ex-Volunteers who have had not less than three years' efficient service and are over 30 years of age should be enrolled.

In localities where there are no Volunteer corps, rifle clubs may enrol members who have not had Volunteer service; but no rifle club should be established within five miles of the headquarters of a Volunteer corps.

Members of rifle clubs should, where practicable, attend a prescribed number of drills and parades in the course of the year, the instruction being in respect to handling arms and firing exercise. The Government to supply rifles and ammunition to enrolled members of rifle clubs at cost price.

After one year's enrolment members of rifle clubs shall be tested at target practice, and on being able to make the minimum number of marks at the prescribed ranges, and having attended the prescribed number of drills and parades, they shall be entitled to receive a certificate as being efficient.

For the first year every enrolled member of a rifle club shall receive a free grant of 50 rounds of ammunition; and thereafter to every efficient member of a rifle club there shall be allowed a free grant of 100 rounds of ammunition, to be used at matches or at practice.

Members of rifle clubs also to have concession in the shape of free railway passes when attending rifle association competitions.

Rifle clubs shall form part of the battalion of the Volunteer District in which they are located, and be subject to the orders of the officer commanding such district, and shall be liable for active service on the declaration of war.

CADET CORPS.

14. Your Committee are of opinion that cadet corps in connection with the various schools in the colony should be establisher and encouraged. They should be under the control of the Education Boards and the Education Department. The Defence Department to supply a limited number of carbines and a certain quantity of ammunition for the use of the elder boys in school corps.

In addition to school cadet corps, your Committee recommend the formation of cadet corps to consist of youths who have left school, but who are not old enough to join a Volunteer corps. These corps should be under the Defence Department, and subject to regulations to be prescribed.

DEFENCE STORES.

15. In the opinion of your Committee, matters of finance, the ordering and receipt of military stores, should belong to the Department of the Under-Secretary for Defence; on arrival in the central store they should be issued by that Department to the Commander of the Forces, who should be responsible for seeing that the minimum war standard of such stores is maintained; in addition to the central receiving store in Wellington there should be stores at the four chief Volunteer centres, so that the stores from the receiving store could be sent to each centre by the Commander of the Forces. The Cominander of the Forces should report to the Minister quarterly as to the stores in hand, and the amounts required to bring them up to the minimuin war. standard.

FINANCE.

16. Your Committee recommend that the Imperial authorities be applied by the Government of the colony to advance the capital necessary to enable the colony to

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carry out such of the above recommendations as may be adopted by Parliament, and upon the terms set forth in the statement made in the House of Representatives on the 20th July 1900, by the Right Hon. R. J. Seddon, Premior and Minister of Defence, referred to in the early portion of this report.

AMENDMENT OF DEFENCE ACT.

17. Your Committee recommend that an amending Defence Act should be introduced and passed into law during the present session, giving legal effect to such of the recommendations of your Committee as can properly be provided for therein, and that The Volunteer Regulations be also amonded accordingly as may be necessary.

NAVAL RESERVE.

18. With regard to the subject of the establishment in this colony of a branch of an Imperial or Colonial Naval Reserve, your Committee consider the matter to be one of such importance that they recommend negotiations being entered into by the Government of New Zealand with the Commonwealth of Australia and the Imperial Governinent, with a view of ascertaining whether some satisfactory arrangements can be made upon the subject.

CONVERSION OF STEAMERS.

19. Your Committee further recommend that the attention of the Imperial authorities be drawn to the matter of the conversion of merchant steamers trading to this colony into armed cruisers, and the proper equipment of such steamers as cruisers.

AUSTRALIAN SQUADRON.

20. Your Committee, having regard to the altered international political conditions, especially in China and the Pacific, recommend that representations should be made by the Government of this colony, to the Commonwealth of Australia and to the Imperial Government as to the necessity of strengthening the Australian Squadron by raising the class and increasing the number of the cruisers composing that squadron; the increased cost to be paid by the Commonwealth of Australia and by New Zealand on the basis of the present agreement.

CONCLUSION.

This report of your Committee is submitted upon the assumption that arrangements will be made for the capital necessary for carrying out the recommendations of your Committee being advanced by the Imperial Government to the colony at a rate of interest satisfactory to the Parliament of New Zealand, and that a sinking fund will be provided for the ultimate extinction of the loan.

If such arrangements cannot be inade, it is obvious that parts only of such scheme could be carried out by the colony, and then only by spreading the necessary capital expenditure over a number of years. If the colony has to undertake the work without assistance from the Imperial Government, your Committeo submit for consideration the alternative of completing the fortifications of, say, only two ports in the colony; more especially as having regard to the fact that, owing to the rapid changes and improvements in artillery armaments, those now recommended to be purchased for the completion of the forts may in a few years be quite obsolete, and consequently a very heavy expenditure upon guns in the forts may become a dead loss to the colony.

The scheme submitted to Parliament by the Right Hon. R. J. Seddon, Premier and Defence Minister, on the 20th July 1900, and which was referred to your Committee, has been taken by them as the basis of their report. Your Committee have dealt with the many important matters concerning the defences of the colony mentioned in that scheme, aud with others which have been suggested during the course of the investigations of your Committee.

The capital cost of carrying out the improvement of the defences recommended in your Committee's report would be, approximately, £373,428, as shown in the estimate in Schedule A attached to this report.

The annual extra cost to the colony in respect of such improved defence, including interest and sinking fund, would be £59,303."

21st September. 1900.

E 21528.

ALBERT PITT, Lieut.-Colonel, Chairman Joint Defence (Secret) Committee.

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