G.—lo.

Kahungunu. Three miles to the west of the Mohaka Viaduct, on the Napier-Wairoa Railway, is situated the Kahungunu scheme, which comprises the balance of the Crown land portion of the Mohaka block handed over by the Lands Department in January, 1933, for development purposes. It was the original intention to have this land developed by and for the benefit of unemployed members of the Kahungunu tribe living in the Wairoa and Mahia districts, but a portion was reserved for settlers of the Ngati-Pahauwera hapu. While the total area gazetted under the scheme is 8,230 acres, it is estimated that only 5,000 acres are suitable for development, and towards this end 1,400 acres have been brought into permanent pasture. The establishment of five new settlers during the past year brings the total number of assisted farmers up to nine, with fifty-seven dependants. An increase in the butterfat return has been achieved, while the wool-clip, the proceeds for which were received after March, reached a figure more than 200 per centum in excess of that of the previous season. A marked improvement both in the carrying-capacity of the land and the industry of the units is reflected in the increase of sales of sheep. That the light pumice land of which the scheme consists can be profitably developed is apparent from the excellent returns, but, nevertheless, the principles of heavy stocking and the generous use of fertilizer must be pursued if the improvement is to be made permanent and the units become selfsupporting farmers. The extensive use of shelter-belts of Pinus radiata has ensured protection for live-stock and crops. With the completion of the East Coast Main Trunk Railway, this isolated scheme will benefit in a similar manner to its parent scheme, Mohaka. The year's operations include 292 acres of bush-felling, 100 acres of grassing, 5| miles of new fencing, 78 acres of general cultivation, and 60 chains of road formation. Cow-sheds and dwellings are being erected as the settlers are established on a definite tenure. As at 31st March the area was carrying 87 cows, 12 other dairy stock, and 294 sheep. Mahia. Consequent upon the representations of the Natives of the Mahia Peninsula for asistance to develop and farm the fairly large tract of their land situated oil the sunny sheltered side of this beautiful peninsula, an area of 2,771 acres was gazetted under the Native land development legislation on 25th February, 1937. No work had been commenced at the date of this report, and it is first intended to undertake a topographical survey in order to better plan the system and budget the costs of development. The area will be classified as a" unit " scheme from inception, and it is estimated that it will ultimately subdivide into twelve holdings. The headquarters of the block will be located approximately five miles from the port of Waikokopu, which will shortly be linked up with the East Coast Main Trunk Railway. The scheme will benefit considerably by these increased facilities for the handling of live-stock and produce. The land is suitable for dairying, the Whangawehi block containing good quality sandy loam through which run two streams, while the Kaiwaitau block, although badly infested with blackberry and menaced with encroaching and shifting sand, is of sufficiently good quality to subdivide ultimately into successful farms. Across the river from the former area is the Mahanga block consisting of a sandy river silt soil which will grow good maize crops and should, judged by adjoining farms, be turned into first class pasture land. Marram grass is to be planted on sea-coast sections on these blocks. There is a bright prospective future for this scheme, which, when developed, will provide a home and occupation for a large number of Natives who are at present having an uphill struggle to maintain reasonable living conditions. Mohaka. On the 15th January, 1930, this scheme —the first in the Tairawhiti Maori Land District under the Native land development legislation of 1929—was authorized. The consolidation of the interests acquired by the Crown in the Mohaka blocks and the definition of awards of land to the Crown and to the Natives, who had not sold, were advanced sufficiently under the Mohaka consolidation scheme to enable the Department to provide assistance for improving the Native holdings. The Mohaka blocks presented many difficulties in development. They were many years ago leased to Europeans, who grazed sheep and cattle. Whatever clearing and grassing had been done by the lessees had reverted to fern, manuka, and tauhinu, while blackberry had taken possession of the land on either side of the main road, more particularly on the Waipapa block, on which the Mohaka Village is situated. Pumice predominated on the flats and terraces and easy hill lands, while papa outcrops were in evidence on all steep country. The hill country was riven in places by gullies, which were an obstacle to connected improvement and economical subdivision. The lands suitable for dairying were strung along the main road in such fashion as to create allotments of peculiar shapes and sizes. The Mohaka Natives had commenced dairying in a small way before the scheme was launched, and were anxious to obtain assistance under the Act of 1929. The unusual combination of pumice and papa soils on the scheme necessitated special treatment and methods. It was necessary to plough and cultivate intensively all low-lying lands, for the control of blackberry and for cropping preparatory to sowing in permanent pasture, and to make liberal use of manures and of heavy stock for consolidating the pastures. The scheme now comprises an area of 19,709 acres on which fifty-four settlers with 293 dependants are engaged, principally in dairying.

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