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SECTION I.—STATE AND ADMINISTRATION The Navy Department is controlled by the Naval Board, established by the Naval Defence Amendment Act, 1936. 2. The Board consists of— The Minister of Defence (Chairman). A Captain, Royal Navy, with the rank of Commodore (as First Naval Member and Chief of Naval Staff). A Captain, Royal Navy (as Second Naval Member). A Commander (S), Royal Navy, with the acting rank of Captain (S), Royal Navy (as Naval Secretary). 3. All three naval members of the Board have been changed in the past twelve months. 4. A state of the Fleet as at 31st March, 1948, is attached as Appendix I. SECTION lI.—GENERAL SURVEY OF YEAR 5. " Bellona " has been employed in a training role since May, 1947, and has proved most useful as a training cruiser. This involves constant changes in personnel to be trained, thus the ship cannot be regarded as fully operational, but during the current Fleet expansion " Bellona " will continue as a training cruiser until new ships are manned as fully operational units. 6. Due to discharges in April, 1947, as a result of a number of ratings failing to represent certain alleged grievances through proper channels, a limited number of W.R.N.Z.N.S. were entered to meet immediate requirements. Government approval has since been obtained for the permanent establishment of W.R.N.Z.N.S. on a limited scale, a step which assists the manning situation and constitutes an important asset to the Royal New Zealand Navy. 7. Movements. —The following cruises have been carried out during the year : " Bellona April .. .. .. Sydney, Melbourne, and Hobart. July to August .. .. Kermadecs, Fiji Group, Ellice Islands, Rotumah Tongan Group. November to December .. Napier, Nelson, Bay of Many Coves, Picton, Lyttelton, Dunedin, Akaroa, Wellington. February .. .. During refit of " Bellona," ship's company carried out annual musketry course at Waiouru Military Camp. March .. .. Exercises with Australian Squadron. " Arbutus April .. .. .. Aitutaki. May to July .. .. Cook and Tokelau Groups. October to December .. Akaroa, Timaru, Oamaru, Bluff, Lyttelton, New Plymouth, and Wellington. " Arabis " and " Arbutus " February to March .. Waitangi for Commemoration Ceremony; Dunedin for Centennial Celebrations; and Wellington. " Kiwi" .. .. .. Dunedin.

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