YEAR ENDING 31 MARCH, 1940.

NAVAL SERVICE —continued.

REMARKS. (a) Final year's programme. (b) Final year's programme for reconstruction of dockyard. (c) Includes part cost of oil-fuel tank at Wellington. (d) It is intended to build a naval instructional and meclianical training establishment and reconstruct H.M.S. " Philomel" to provide adequate accommodation for increased numbers. (e) Expenditure now included under heading " Pay and Allowances." (/) Increase due to the necessity for transport of greater quantities of stores from England and Australia. (g) It is proposed to build three training-vessels for employment with the instructional and mechanical training establishment. (h) It is proposed to commence stiffening certain selected merchant vessels to enable guns to be mounted in war. (i) It is proposed to enter six junior officers this year as part of the policy of manning the New Zealand Naval Forces by New-Zealanders. 9*

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