In case of grave misconduct, insubordination, or other serious offence,
the captain of the ship in which the offender is borne may, if he thinks it
desirable, immediately discharge the offender from the Reserve, reporting
having done so to the Registrar-General and the Registrar.

54. Any man may, with the approval of the Registrar-General, be discharged
    from the Reserve for inefficiency or physical unfitness. In the
    case of discharge for inefficiency, and physical unfitness due to the reservist's
    own fault or indiscretion, the portion of retaining-fee due to date of dis-
    charge will be forfeited.

55. A man discharged for any of the above causes will not be allowed
    to re-enter the Reserve at any future time.

56. Men in class C may, with the approval of the Registrar-General,
    purchase their discharge from the Reserve on payment of a sum of £1 for
    each year, or part of a year, of the unexpired period of enrolment, except
    during the fifth period of enrolment, when a free discharge may be granted
    on application.

Men of classes A and B may purchase their discharge on payment of
double the above amounts of purchase-money. During the fifth period of
enrolment a free discharge may be granted on application, subject to
forfeiture of the portion of retainer due to date of discharge.

XII. RESIDENCE ABROAD.

57. Permission may be granted to reservists to proceed or reside abroad
    for periods not exceeding six months.

XIII. RESERVE DECORATION.

58. A long-service and good-conduct medal will be granted to a reservist
    of any of the classes of the Active Reserve who has satisfactorily completed
    fifteen years' service in the Reserve with the requisite Naval training and
    has re-enrolled for a fourth period of service, or has completed twenty
    years' combined service in the seagoing forces and the Reserve, of which at
    least ten have been in the Reserve; provided that his character has never
    been assessed below "Very Good" during his service in the Reserve, and
    that his service in the seagoing forces has been such as would have been
    allowed to reckon towards the award of the medal.

Service in the seagoing and Reserve forces of the Royal and other
Dominion Navies may count for the award of the medal, provided that the
reservist was legally discharged from such service under the regulations
applicable thereto.

When the conduct of any man after he has been awarded the medal is
considered to be such as to disqualify him from wearing it, he may be
deprived of it by warrant as a punishment whilst serving; or, in the case
of grave misconduct of which the reservist may be guilty whilst not serving
or under training on board H.M. ships, the medal may be forfeited by the
order of the Naval Board.

XIV. EXEMPTION FROM MILITARY TRAINING.

59. Members of the New Zealand Royal Naval Reserve, classes A
    (Active Reserve), B, and C, will be exempt from military training under
    the Defence Act so long as they continue to be enrolled in the Royal Naval
    Reserve.

XV. SERVICE IN TIME OF EMERGENCY.

60. Royal Naval Reserve men of all classes are liable to be called into active
    service by Proclamation. This service will continue so long as the emergency
    lasts and until orders are given for the demobilization of the Reserve.
    Service during such periods will generally be governed by the Regulations
    for the Government and Payment of the New Zealand Division of the
    Royal Navy, or as may be subsequently prescribed.

XVI. REGISTRAR-GENERAL, AND REGISTRAR, R.N.R.

61. The Commodore or other officer commanding the New Zealand
    Division of the Royal Navy shall be the Registrar-General of the New
    Zealand Royal Naval Reserve. He shall be assisted in these duties by the
    Registrar, Royal Naval Reserve, Navy Office, Wellington, to whom all
    matters should in the first place be referred. The Registrar is authorized
    to act for the Registrar-General in all matters in regard to which the
    authority of the Registrar-General is not specifically required and, as regards
    such matters as those last referred to, during the absence of the Registrar-
    General from New Zealand waters.

F. D. THOMSON,
Clerk of the Executive Council,