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IV. Reserves. The following is the state of the New Zealand Royal Naval Reserves :— Officers, R.N.R. .. .. .. .. .. .. .. 8 Officers, R.N.Y.R. . . . . . . . . . . .. .. 63 Men, R.N.R. — Class A (Active) —Men who have served in the Royal Navy or any Dominion Navy, and who come lip for periodical training .. .. 86 Class A (Inactive) —Men who have been discharged from the seagoing Forces in New Zealand, other than those joining Class A (Active). These men are liable to be called up for naval service in the event of war within ten years of discharge from the seagoing Forces if not then over forty years of age . . .. .. . . . . . . . . 141 Class B —Men who follow the sea as a profession in the mercantile marine or steam fishing-vessels .. .. .. .. .. 12 Class C —Men ineligible for Classes A or B .. .. .. 96 Class D (Royal Naval Volunteer Reserve) —As for men Class C, but only eligible to join when a division is formed in any district where they may be living .. .. .. .. .. .. .. 420 There has been very considerable expansion of the Royal Naval Volunteer Reserve during the past year owing to the inauguration of Reserve Divisions in Wellington, Christchurch, and Dunedin. 2. Extensive seagoing training of the Royal Naval Volunteer Reserve seamen of the four Divisions (Auckland, Wellington, Canterbury, and Otago) was carried out during the autumn cruise. Each cruiser embarked two officers and twenty men from each division for a period of ten days. Great keenness was displayed by the Reservists, and I took the opportunity of the ship's visit to the ports to inspect the new headquarters and divisions at Dunedin, Christchurch, and Wellington. I am satisfied that the Volunteer Reserve Divisions at all these ports will prove most efficient, and provide useful bodies of men for the defence of New Zealand. 3. The Auckland Division of the R.N.V.R. took part in the combined Naval and Military Review at Auckland on the sth June, 1928, under the command of Lieut.-Commander C. H. T. Palmer. This is the first time that the Auckland Division of the Royal Naval Volunteer Reserve has participated in a review. Their appearance and marching was excellent, and reflect great credit on all concerned. 4. In the combined naval and military operations on the 13th February, 1929, the R.N.V.R. launches, manned by experienced Reserve officers (and owners) proved their value and adaptability to suit naval requirements. It is hoped that in future operations of this nature the Royal Naval Volunteer Reserve may be able to take a larger part. V. Proceedings. (A) H.M. Ships " Dunedin," " Diomede," " Laburnum," and " Veronica." During April and until lltli May, 1928, the squadron, consisting of H.M. Ships " Dunedin " (wearing my broad pendant), " Diomede" (Captain L. V. Wells, D.5.0., R.N.), " Laburnum " (Commander F. N. Attwood, R.N.), and "Veronica" (Commander G. W. T. Robertson, R.N.) cruised in New Zealand waters. 2. On 19th May H.M.S. " Diomede," having previously docked, sailed for England to recommission and refit, proceeding via the Panama Canal, calling at Rarotonga, Moorea, Tahiti, Marquesas Islands, and Galapagos Islands en route. The remaining ships of the squadron remained in company at Auckland until sth June in order to take part in the combined Naval and Military Review held in honour of His Majesty the King's Birthday, when the Forces were inspected by His Excellency the Governor-General. 3. On sth June H.M.S. " Dunedin " proceeded to the Hauraki Gulf for exercises, and the sloops sailed for the Pacific islands, H.M.S. " Laburnum" visiting the eastern groups of islands and H.M.S. " Veronica " the western groups. 4. H.M.S. " Dunedin " remained at Auckland from 15th June to sth July, when she sailed for the Pacific islands and to take part in the Cook Sesquicentennial Celebrations in the Territory of Hawaii. During the cruise the Fiji Islands, Sydney Island (Phoenix Group), the Territory of Hawaii, Christmas, Fanning, and Northern Cook Group Islands were visited. 5. During the Cook Celebrations in the Territory of Hawaii, as senior British officer present I took command, within the limitations laid down in New Zealand Regulations, Article 7, of the British Squadron, consisting of H.M. Ships "Dunedin," "Cornwall," and H.M.A.S. "Brisbane." The conduct of the men was exemplary. I feel sure that the visit can be considered a most successful one, and I am satisfied that the appearance of the ship which I have the honour to command made her a worthy representative of the Dominion of New Zealand and of the New Zealand Division of the Royal Navy. 6. H.M.S. " Dunedin " returned to Auckland 10th September for docking and refit, where she remained until 11th October. She sailed thence for Akaroa and Wellington, at which latter port she arrived 25th October for the annual musketry course at Trentham Camp. H.M.S. " Diomede " on her return voyage from England visited Honolulu, Suva, and other islands within the limits of the New Zealand Station, and reached Auckland 17th November, where she remained until 4th December, when she joined H.M.S. " Dunedin " in the Hauraki Gulf for exercises. Both ships returned to Auckland on 7th December for the Christmas leave period. H.M. Ships " Laburnum " and " Veronica " arrived at Auckland in the latter part of October, and refitted until December, when they proceeded to the Hauraki Gulf for exercises.

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