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2 N.Z.E.F. (Japan) In accordance with the Government's decision to relieve the men at present serving with the 2 N.Z.E.F. in Japan, who left New Zealand between May and July, 1946, a second relief Force is at present under training at Papakura and Trentham Camps. The strength of this Force on 23rd May, 1947, was 1,756, and enlistments are continuing. Owing to the limited time available, only basic training and some specialized training has been possible, and this is nearing completion. Further training will be given after the arrival of the relief Force in Japan late in July. Twelve other ranks are at present undergoing training in the Japanese language in Australia, with a view to subsequent employment as interpreters in Japan. Arrangements for the shipping of drafts have been finalized, and the first draft for return to New Zealand is expected to leave Japan early in June. The second and final draft is expected to leave at the end of July. During the period under review, 68 applications have been approved on compassionate grounds for the return of Army personnel from Japan, 73 have been declined, and 3 are pending. Army Establishments The strengths of Army establishments have been constantly under review and staffs have been reduced to the minimum commensurate with administrative efficiency and the handling of relief Forces for 2 N.Z.E.F. (Japan). Army strength has been reduced from 14,933 all ranks as at 30th April, 1946, to the following as at 23rd May, 1947 : Officers. Other Ranks. In New Zealand . . . . . . 421 4,156 In United Kingdom ■'.'. . . 18 42 2 N.Z.E.F. (Japan) . . . . . . 290 3,781 Other locations . . . . 30 10 759 7,989 The figures for New Zealand include 38 officers and 1,718 other ranks of the relief Force for 2 N.Z.E.F. (Japan) in camp on 23rd May, 1947. Pay New scales of pay and allowances for the Army were authorized by the Government during the period under review. In conjunction with the introduction of these rates, the Army has adopted the British " star " system, modified to suit New Zealand conditions, for pay of other ranks. The basis of this system is that in the ranks of corporal and below there is a common scale of pay for tradesmen and non-tradesmen alike, the progression of both classes being governed by the award of " stars " — i.e., one star, two stars, or three stars. It is now possible in these ranks for the soldier with military skill alone, if it amounts to sufficiently high qualification of a specialist character, to receive the same rate of pay as the Army tradesman with qualifications of equivalent value. in the ranks of sergeant and above two rates are provided, one for the highest skilled class of tradesmen and the other a common rate for all other classes of tradesmen and non-tradesmen alike.

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