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The lead is very short. For an article of this size I'd expect to see two or at a stretch three paragraphs summarising the article. Consider expanding it.
I note you've helpfully linked Mauri words, but it might also be worth having a very short English explanation for some of them (e.g. his tangi (or funeral) was)
Another factor in the downgrading may have been Manahi's VC nomination following that of Ngarimu's, just three weeks earlier.; this sentence took me a couple of goes to parse the reasoning from it. Maybe consider rephrasing this to emphasise the reason why this is considered a potential factor in the downgrade, i.e. expand on why that could have lead to a downgrade (if the source provides such analysis).
Did all of the Takrouna actions happen on the same day? It's a little unclear. I'd suggest that the paragraph beginning Despite reinforcements needs some clarification r.e. time of day or date to make sure the reader is clear on when those events occured.
I see the article is based predominantly on one source, Moon, which looks reliable. However, are there any other sources which could be used to augment the information? In my experience of writing war biographies you will find other books will have tiny pieces of information which slowly build a more complete picture :) I found some sources which may be useful to augment the material, some of which are a lot more recent than the main source:
How We Saw the War: 1939-45 Through New Zealand Eyes, Ron Palenski (2011)
The Preliminary Report on the Haane Manahi Victoria Cross Claim (2005)
Haane Te Rauawa Manahi, 1913-1986 New Zealand. Ministry of Māori Development (2009)
The Army Quarterly and Defence Journal, Volume 128 (1998)
It offers the following information regarding the war crimes: "The Italians made a really determined effort to climb the track but Manahi and Corporal Bell mowed them down with their automatics. The second party forced its way on to the ledge and there was some close-quarter fighting in the alleys between the huts. The Italians lobbed a grenade into a building where the wounded were gathered; it is not suggested that they knew the men were wounded, but the grenade killed most of them. The Maori reaction was ferocious and Italians, whether they wanted to surrender or not, were shot, bayoneted, or thrown over the cliff."
Oops. I have realised that I made a typo in the date used in each citation for Moon; it should be 2010, not 2000. I have fixed all of these. The date of Moon as recited in the references section is correct. The 2005 and 1998 sources are both cited in Moon, however I have found the Preliminary report online and used it as a source to expand a couple of points. I don't have access to the other sources, but suspect that the Ministry of Maori Development source is likely to be in Maori (which I can't read). Zawed (talk) 23:57, 27 December 2012 (UTC)Reply
This doesn't affect the GA status, but just a note: if you intend to take this to A Class or Featured Article review then don't mix citations and footnotes.
Not sure I fully understand your comment; I have (I think) used the same style of citation throughout. I know that you aren't supposed to mix styles of citations. Zawed (talk) 23:57, 27 December 2012 (UTC)Reply
Thanks for the feedback, I'm glad you found it interesting. Also thank you for taking the time to review the article, it is greatly appreciated. Zawed (talk) 23:57, 27 December 2012 (UTC)Reply
Haane Manahi (1913–1986) was a New Zealand Māori soldier who served in the Second World War with the Māori Battalion. He joined the battalion in 1939 and fought in the German invasion of Greece, the Battle of Crete and the North African campaign. In April 1943, during the Tunisian campaign, his gallantry in an action at Takrouna resulted in a recommendation, supported by four generals, that he be awarded the Victoria Cross. This was downgraded to an award of the Distinguished Conduct Medal, which disappointed many of his fellow soldiers. After his death in a car crash in 1986, representations were made for a posthumous award of the Victoria Cross for his valour at Takrouna. These representations were unsuccessful but eventually resulted in a special award in 2007 of an altar cloth for use in a local church, a ceremonial sword, and a personal letter from Queen Elizabeth II in recognition of his gallantry. This June 1943 photograph of Manahi was taken in Maadi, Egypt, by George Robert Bull, the official photographer of the New Zealand armed forces.
Photograph credit: George Robert Bull; restored by Adam Cuerden