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12. The following advancements of New Zealand ratings have been made during the period under review (previous year in brackets) :— Able Seaman to Acting Leading Seaman .. .. . . 11 (8) Leading Seaman to Acting Petty Officer .. .. .. .. 5(6) Petty Officer to Chief Petty Officer .. .. .. . . 1 (1) Telegraphist to Acting Leading Telegraphist .. .. . . . . 4 (1) Leading Telegraphist to Acting Petty Officer Telegraphist .. .. 2 (1) Signalman to Acting Leading Signalman .. . . .. .. 5 Leading Signalman to Acting Yeoman of Signals . . . . 2 Yeoman of Signals to Chief Yeoman of Signals . . . . . . 1 Stoker, Ist Class, to Acting Leading Stoker . . . . . . 16 (11) Leading Stoker to Acting Stoker Petty Officer .. .. .. 5 (1) Stoker Petty Officer to Chief Stoker .. .. .. .. 1 (1) Leading Writer to Petty Officer Writer . . .. . . . . 1 Supply Assistant to Leading Supply Assistant . . . . .. 2 (2) Leading Supply Assistant to Supply Petty Officer . . . . .. 1 (1) Cook to Leading Cook . . .. . . . . . . .. 2(1) Leading Cook to Petty Officer Cook .. .. . . . . 1 Petty Officer Cook to Chief Petty Officer Cook .. .. 1 Officers' Cook, 2nd Class, to Officers' Cook, Ist class .. . . .. 1 (1) Leading Steward to Petty Officer Steward .. . . .. .. 1 Shipwright to Chief Shipwright, 2nd class .. . . .. 1 Engine-room Artificer to Acting Chief Engine-room Artificer, 2nd class .. 1 (1) Stoker Petty Officer to Mechanician, 2nd class .. . . 1 Stoker Ratings to Acting Stoker Petty Officer (provisionally selected as Mechanician Candidates) .. .. .. .. .. 8 (8) Section lll.—Civilian Employees. 13. Seven apprentices for various trades were entered during the year, making a total of fourteen now under training at the Naval Base. 14. The average number of civilians employed during the year has been 227. 15. An agreement governing the conditions of service of civilian workmen employed at the Naval Base was signed on the 23rd August, 1937, by representatives of the Public Service Commissioners, the Navy Department, and the trade-union officials concerned. Section IV.—Peksonnel, Royal Naval Reserve (N.Z.D.). 16. The strength of the Royal Naval Reserve on 31st March, 1938, was—officers 13, ratings 144, an increase of 1 officer and 33 ratings in the year. Section V. —Personnel, Royal Naval Volunteer Reserve, (N.Z.D.). 17. The total numbers borne on 31st March, 1938, were as follows: Officers, 64; ratings, 548. Of these, 5 officers and 10 men are on the supernumerary lists. 18. Approximately 51 per cent, of the executive officers and 69 per cent, of the men performed obligatory training in H.M. ships. Last year percentages were 60 per cent, and 59 per cent, respectively. Voluntary training was carried out by 17 officers and 174 men. 19. The divisional headquarters at Auckland, Wellington, and Canterbury have been maintained in an efficient state. Plans and estimates have been considered for the provision of a new headquarters for the Otago Division at Dunedin. It is intended to seek authority for putting in hand work on this much-needed building in the near future. 20. Officers and men have embarked in the Imperial escort vessels " Leith " and " Wellington " for combined mine-sweeping exercises in conjunction with H.M.S. " Wakakura " on two occasions and have derived considerable benefit from this practical training. 21. Interdivisional tournaments were carried out during the Labour Day week-end in October. The Wellington Division visited Auckland, and the Otago Division visited Canterbury. These tournaments have been made possible by the grant of £300 per annum now available to encourage interdivisional competitions. Section Vl.—Proceedings of Cruisers op the New Zealand Division. H.M.S. " Achilles." 22. On Ist April, 1937, H.M.S. ''Achilles" (broad pendant of the Commodore Commanding New Zealand Station) was at sea taking part in a combined strategical exercise with ships of the Royal Australian Navy, who were on passage from Australia to New Zealand. She returned to Wellington on 3rd April, and was in company with ships of the Royal Australian Navy from 3rd to 7th April at Wellington, and from 16th to 21st April at Auckland. 23. With H.M. Ships " Leith " and " Wellington " in company, a programme of exercises was carried out in Hauraki Gulf from 7th to 16th April, and with H.M.S. " Leith " in company between 21st and 28th April. Opportunity was also taken of the presence of the Royal Australian Navy ships to carry out combined exercises, which proved of much value.

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