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111. Personnel, Royal Naval Reserve (N.Z.1).). 10. The strength of the Royal Naval Reserve on the 31st March, 1935, was as follows: Officers, 8; ratings, 100. 11. The programme for the entry of officers has been maintained, but up to recently no young officers have been available. The situation is now greatly improved, due to the Union Steamship Co. of New Zealand having entered a number of young officers. 12. The reduction in the number of men is due to the removal from the list of men discharged from the Naval Service " medically unfit " who were formerly included in the Reserve. IV. Personnel, Royal Naval Volunteer Reserve (N.Z.D.). 13. The numbers borne on the 31st March, 1935, were as follows: Officers—List I, 66; List 11, 22. Men—List I, 567; List 11, 683. 14. Approximately 53 per cent, of the Executive Officers and 73 per cent, -of the men on List I have undergone obligatory training in H.M.S. " Wakakura" or the cruisers. Officers have experienced increased difficulty in obtaining leave of absence, and training has been restricted accordingly. 15. Progress has been made in providing adequate facilities for instruction in all subjects at the four Divisional Headquarters. The keenness displayed by all ranks and ratings is most gratifying. 16. No provision has yet been made for the second mine-sweeping vessel referred to in former reports. This continues to be an urgent requirement. The question of obtaining a vessel locally has been fully investigated, and no suitable vessel is available. Plans of a modern Admiralty trawler, modified to embody the requirements of a seagoing trainingvessel, have been prepared and despatched by the Admiralty. 17. In July, 193 d, the s.s. " Duchess," of Auckland, was chartered by the Naval Board for a period of twelve weeks and fitted out and commissioned as a minesweeper. Extensive trials were carried out in conjunction with H.M.S. " Wakakura." Although the " Duchess " is not a typical coastal vessel, much valuable information was obtained in connection with, the requirements which go to make a vessel suitable as a mine-sweeper and the work required to be carried out at the Base. Financial considerations restricted training, but officers and ratings especially selected for instructional duties at Headquarters were embarked from each Division. V. Proceedings (Cruisers op N.Z. Division). H.M.S. " Dunedin." 18. On Ist April, 1934, H.M.S. | Dunedin " (broad pendant of the Commodore Commanding) was at Wellington, where the ship's company was carrying out the annual musketry course at Trentham Camp. 19. The annual Royal Naval Rifle Meeting, at which teams from H.M. Ships Dunedin," " Diomede," and " Philomel," and the R.N.V.R. competed, concluded on the 3rd April. " Dunedin " sailed from Wellington on the 4th April, and visited New Plymouth, Nelson, and Queen Charlotte Sound before returning to Wellington on the 23rd April. 20. On the 26th April " Dunedin" sailed for Auckland for docking, storing, &c., preparatory to 'the annual cruise to the Pacific Islands. 21. On the 15th June " Dunedin " sailed for the Pacific Islands, and visited Nukualofa, Suva, Apia, Pago Pago, Bora Bora, Tahiti, Moorea, Raiatea, and Rarotonga. His Excellency the Administrator of Western Samoa and his staff were embarked at Apia for passage to Pago Pago. The ship returned to Auckland on the 7th August. 22. During the period 3rd to 14th September " Dunedin," in company with " Diomede," carried out gunnery and torpedo practices in the Hauraki Gulf. 23. On the 17th September " Dunedin " and " Diomede " sailed for Australia, and, after visiting Sydney and Hobart, arrived at Melbourne for the centenary celebrations on the 18th October. When approaching Port Melbourne they met H.M.A.S. " Canberra" and " Australia " and H.M.I.S. " Hindustan," and formed an escort for H.M.S. " Sussex," flying the Standard of H.R.H. the Duke of Gloucester. 24. " Dunedin " and " Diomede " sailed from Melbourne on the 7th November, and, after visiting Dunedin and Lyttelton respectively, arrived at Wellington on the 18th November in order to be present during the visit of the Italian Cruiser " Armando Diaz." 25. The ships sailed from Wellington for Auckland on the 20th November. While at Auckland, Christmas leave was given to half the ship's companies, and on the 12th December the ships sailed for Wellington via North Cape. 26. The cruisers met H.M.A.S. " Australia," flying the Standard of the Duke of Gloucester, at sea, and on the 15th December, in company with H.M. Ships " Laburnum " and " Leith " escorted her into Wellington Harbour. " Dunedin " and " Diomede " sailed for Auckland on the 20th December. Christmas leave was given to the ot.ner half of the ships' companies. 27. On the 18th January, 1935, the main draft of Imperial ratings serving in " Dunedin " sailed for England, having completed their service on the New Zealand Station. The refit ■of the ship commenced the next day. 28. " Dunedin " paid off on the 14th March and recommissioned on the 15th March, and will shortly be completed to full complement.

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