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XI. Naval Armament Depot. 43. It was not practicable to proceed with the construction of the additional magazine accommodation at Fort Takapuna referred to in my last report, owing to the requirements of the Defence Department, and plans are accordingly being prepared for the transfer of the Naval Armament ■ Depot to a new site which will permit the necessary expansion, required for the increased quantities of ammunition, to be effected in due course. XII. Visits of H.M. Australian Ships. 44. H.M.A.S. " Australia " flying the Standard of H.R.H. the Duke of Gloucester, visited New Zealand in December, 1934, and January, 1935, en route from Australia to the United Kingdom. 45. H.M. Australian Squadron, consisting of H.M.A.S. " Canberra " (flagship of RearAdmiral W. T. R. Ford, C.8.), H.M.S. " Sussex," and H.M.A. Ships " Stuart," " Voyager," and " Vendetta " commenced a cruise to New Zealand waters on 4th March, 1935, visits being paid to Russell, Auckland, Wellington, Christchurch, Dunedin, and New Plymouth. XIII. Visits of Foreign Warships. 46. The Italian Cruiser " Armando Diaz " visited Wellington from the 17th to the 23rd November, 1934. XIV. Drills, Exercises, and Training Afloat, and General Remarks. 47. In addition to the normal programme of exercises and drills, the opportunity was taken of carrying out combined operations with ships of H.M. Australian Squadron, both during the visit to Australia and the visits to New Zealand of H.M.A. Ships. XV. Policy. 48. Steady progress has been made in the provision of reserves of stores, &c., but there still remains much to be done. The main policy has been directed towards the provision of the increased repair and other facilities required by the larger and more modern ships which are due to arrive during the next two years. I have, &c., F. Btjrges Watson, Commodore Commanding New Zealand Station.

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