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The construction of the overhead travelling crane to expedite the unloading of logs has been delayed by the shortage of steel, but some progress is expected at an early date. The first stage in the development of the Kaingaroa Sawmill has been reached and the mill is in production. Plant still to be installed comprises gang-saws, boiler and power-house and sorting-table equipment. 59. Transportation.—The need for additional vehicles for the cartage of logs and sawn timber is acute, owing to the increased production and the necessity for replacing worn-out machines. Although during the year 34 trucks were acquired for this work, the increase in fleet strength is small on account of the replacement factor. Among the number added were 10 heavy Mack trucks obtained from the United Kingdom Government surplus war stocks and now being utilized for log transportation. The allocation of the 34 vehicles received was : Auckland, 6 ; Rotorua, 23 ; Canterbury, 3 ; and Southland, 2. 60. Communications— New telephone lines erected during the period comprised 21 miles of earth-working circuit and 30 miles of metallic circuit, and 4 miles of existing earth-working circuit were converted to metallic circuit and 4 miles of existing metallic circuit were converted to earth-working circuit. The total length at present is 526 miles, of which 138 miles are of metallic circuit. A total of 270 instruments is installed. The Benneydale-Pureroa line (14 miles), which was completed during the year to Post and Telegraph Department specifications, carries the Post and Telegraph Department's lines to the new post-office at Pureroa Village as well as the Forest Service lines. At Tairua, 6 miles of new line were erected on a co-operative basis with local settlers. Radio-telephone installation has progressed in the Auckland Conservancy, where stations have been completed at Riverhead (control station), Waipoua, Te Kuiti, Pureroa, Great Barrier Island, and in a motor-launch. Work is proceeding on other stations in this conservancy and also in the Wellington, Nelson, and Canterbury Conservancies. A mobile headquarters vehicle for fire-fighting purposes was delivered to the Rotorua Conservancy and is being fitted with radio- and line-telephone equipment. In order to avoid interference between radio networks, separate frequencies have been allocated to adjoining conservancies as follows : Auckland and Nelson, 2,780 kc./s.; Rotorua and Canterbury, 2,760 kc./s. ; Wellington, Westland, and Southland, 2,770 kc./s. Two private afforestation companies in the Rotorua Conservancy will use 2,750 kc./s for internal communication, but will continue to form part of the Forest Service network on 2,760 kc./s. Fire-weather reports were transmitted from the control stations in the Auckland and Rotorua Conservancies to Head Office, Wellington, via the Post and Telegraph Department's receiving-station at Makara using the frequency 5,990 kc./s., and arrangements are being made to extend this facility to other conservancies. 61. Community Planning.—The shortage of labour and materials has retarded the development of Forest Service communities. Some improvement, however, has been made in the living-conditions for employees in a number of localities, a further 20 houses having been completed at Kaingaroa and Waipa and a hostel at Rai Valley. Better progress is expected in the near future. The assistance of officers of the Housing Department in developing forest communities has been of the greatest value.

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