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always keenly sought for. The uses of cobaltized salt and cobaltized superphosphate on the country of this type is reflected in the appearance and stamina of the stock. Subdivision has been approved, and roading is in course of construction. It is hoped that seven returned servicemen will be settled next year. Commissioner of Crown Lands, Napier In common with the remainder of the district, development areas suffered from the abnormally dry conditions experienced during the twelve months. Prices for store stock were firm in the spring, but as the season progressed both mutton and wool weights were considerably below those for an average season. During the year the following blocks were disposed of to ex-servicemen: Parinui, Waihau, Crewan, Kawai, Te Ohu, and Algernon. The following blocks are under development for the settlement of ex-servicemen : Pukeatua, Oringi, Totara Grove, Te Roto, Hendley, Gowrie, Rawhiti, Omapere, Sandy Creek, and Taheke. Kakariki. —An area of reversionary scrub was again cut and useful strikes of grass obtained on burns from the previous year's cutting. In order to service a new transmission fine, the Hydro-electric authorities have constructed a considerable length of all-weather roading through the block. This road will be invaluable in future developmental operations on the block, especially for supplying large-scale scrub-cutting and fencing programmes. Kaheka. —Good progress has ,been made with completing the renewal of boundaryfencing on this area, and a commencement has been made with stripping, renewing, and re-erecting a large portion of the internal fencing. Two miles of road-formation were completed to give road access to some 160 acres of terrace land, and 40 acres,, was put under the plough in the spring. This was sown in cape barley for winter feed. The old wool-shed, which has served the requirements of the block for a great many years, was demolished after shearing, and a large amount of sound timber and corrugated iron was salvaged. It is proposed to commence with the erection of an up-to-date wool-shed,, shearers' quarters, and dip on a more convenient site close to the Manager's homestead.. Some 150 acres of scrub were cut, burnt, and surface sown during the year. It is planned to make the two grazing units on this block available for ex-servicemen for next year, Ahuriri Lagoon (Locality : Napier). —A further area of 200 acres was sown in permanent pasture in the autumn of 1945, the seed for which was supplied from areas harvested on the lagoon itself. Apart from this, developmental operations were limited owing to the continued shortage of material and labour. Despite one of the driest twelve months ever experienced in Hawke's Bay, the carrying-capacity was maintained, but the conditions were reflected in the lighter weights for both mutton and wool. Supplementary crops, mangels, and pumpkins were again good, especially the field pumpkins. These supplied a wealth of valuable feed for a long period. The crops for the winter of 1946 suffered extensively through drought conditions. An area of 116 acres of perennial rye-grass was again harvested. Here again, due to the abnormally light rainfall and lack of strong spring growth, the yield suffered and was less than a quarter of that of the previous year off 160 acres. However, the germination and purity of the machine-dressed seed was again excellent. Taheke (Locality : Hastings).—Possession was taken of this block in February,. 1945. The block comprises good-type of country, and although the spring of 1945 was a poor one the property, having been top-dressed with some 80 tons of manure in the previous autumn and also having been top-dressed fairly extensively by the previous owners, the country came away fairly well. Dry conditions set in from November onwards and a particularly trying time was experienced up until the end of February of this year. In early March beneficial rains were received and the property came away rather well. The stock, both sheep and cattle, is in excellent condition. There is no need for very much extra internal fencing beyond establishing new boundary lines between sections and the overhaul of boundaries with neighbours where necessary,.

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