H.—s

Section 111. —Personnel (Royal Naval Reserve, New Zealand). 16. On 31st March, 1940, the strength of the Royal Naval Reserve, including officers and ratings of the reserve mobilized for service with the New Zealand Naval Forces was—officers, 20; ratings, 188 ; an increase of 6 officers and 16 ratings in the year. 17. During the year 3 Royal Naval Reserve Officers completed gunnery, torpedo, and signal courses at Flinders Naval Depot, Australia. 18. To date, 17 officers and 82 men of the reserve have been mobilized for service, and have been made available to relieve officers and men on loan from the Royal Navy. 19. The officers employed as Examining Officers at the defended ports have been granted Honorary Commissions in the Royal Naval Reserve. Section IV. —Personnel (Royal Naval Volunteer Reserve, New Zealand). 20. The total numbers borne on 31st March, 1940, including officers and ratings mobilized, were as follows : Officers, 83 ; ratings, 710. 21. To date, 43 officers and 499 ratings have been mobilized for service in the New Zealand Naval Forces and for training preparatory to draft overseas. 22. As from the outbreak of hostilities, recruiting for the Royal Naval. Volunteer Reserve has been suspended, but five retired officers have been called up and 54 ex Royal Naval Volunteer Reserve ratings have been re-enrolled. 23. All ranks and ratings have displayed great keenness, increased training has been carried out at divisional headquarters, and every endeavour has been made to bring the sea training of officers and men up to date. 24. Royal Naval Volunteer Reserve personnel are employed in the local naval defence services at Auckland, Wellington, and Lyttelton, and partially to man the New Zealand Minesweeping Flotilla. A number have been appropriated to the cruisers to relieve active service personnel on loan from the Royal Navy. The Royal Naval Volunteer Reserve lias also provided 25 nucleus guns' crews for defensively equipped merchant ships, and officers and men are under training to form part complement of H.M.B. " Monowai " when she commissions. The balance of personnel not required for service in New Zealand has been placed at the disposal of the Admiralty for service iti the Royal Navy.* 25. The equipment at the divisional headquarters has been maintained in an efficient state, and, in addition to its ordinary use, has been of great value in connection with the instruction of officers and men of the mercantile marine, overseas, inter-colonial and coastal. 26. The new headquarters building for the Otago Division at Dunedin is nearing completion and should be ready for occupation in May, 1940. Section V.—Civilian Employees. 27. Civilian apprentices for various trades have continued their instruction at H.M. dockyard during the year. The largest number of employees ou the books during any one week was 519 (323) and the smallest number 280 (115). The average number employed was 348 (263). The corresponding figures for last year are shown in brackets. Section VI. —Proceedings of Cruisers of the New Zealand Naval Forces. 11.M.5. " Achilles." 28. On Ist April, 1.939, H.M.S. " Achilles," under the command of Captain W. E. Parry, R.N., was on passage to New Zealand after recommissioning in England. 29. After calling at Aden, Colombo, and Singapore the ship arrived at Auckland on Bth May, when leave was granted to the officers and ship's company. 30. On 6th July the ship sailed from Auckland to convey His Excellency the Governor-General and Lady Galway to the Pacific Islands, visiting Rarotonga, Mangaia, Mauke, Atiu, Aitutaki, Penrhyn, Rakahanga, Manihiki, Puka Puka, Fakaofu, Nukunono, Atafu, Apia, Pago Pago, Suva, Nukualofa, and Niue, and she returned to Auckland, on 18th August, 1939. 31. Immediately prior to the outbreak of hostilities, as stated in paragraph 6, H.M. Ships " Leander " and " Achilles " were placed under the operational control of the Admiralty, and H.M.S. " Achilles " left the New Zealand Station in August, 1939, for service under the control of Their Lordships. 32. On 13th December, H.M.S. " Achilles," together with H.M. ships " Ajax " and " Exeter " successfully engaged the German armoured ship " Admiral Graf Spee " and succeeded in driving her into the port of Montevideo, Uruguay. As a result of the action the " Admiral Graf Spee " scuttled herself on 17th December, just outside the harbour. Four ratings of H.M.S. " Achilles " were killed and three seriously injured during the engagement; the latter have since made a satisfactory recovery. H.M.S. " Achilles " sustained minor damage by splinters.

* Notb. —They have since left for England.

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