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In conclusion, the Board desires to express its appreciation of the whole-hearted co-operation of the officers of the Department of Maori Affairs in carrying out the policy of the Board and thereby advancing the interests of the Maori people. Appended to this statement are reports on Maori land-development schemes, Maori Land Board and Maori Trust farming operations, Maori housing schemes, Maori Rehabilitation Finance Committee operations, and the enterprises of the East Coast Commissioner ; also tables covering the activities of the Board. Chairman.

PART I. —STATE DEVELOPMENT SCHEMES The provisions of Part I of the Maori Land Amendment Act, 1936, authorize the Board of Maori Affairs to administer State funds and to make advances for the purpose of developing and settling the lands of the Maori people and for the purpose of general assistance in farming and related enterprises (see also Table 1). The following reports from districts indicate the progress achieved along these lines to date. TOKERAU MAORI LAND COURT DISTRICT The Tokerau District covers an area stretching from Auckland City to Cape Reinga. From this area some 120,000 acres have been gazetted, of which all but 3,000 acres are regarded as suitable for development purposes. The soil varies from poor to good, including some gum land and light to heavy clays, and as a result a large amount of development work requires to be done. The whole area experienced an extremely favourable dairy season, and this is reflected in the butterfat-production, which increased by 587,149 lb., or approximately one-third. The average per cow, however, is relatively low, but the position is being watched continuously, and as opportunity offers unsatisfactory beasts are being replaced by better-quality stock. There is a definite evidence that many of the Maori farmers are showing more interest in modern farming-operations and are employing animalhusbandry methods in order to get the best out of their farms, especially in view of the increased prices obtainable for produce. Sixteen schemes are included, ranging in size from 227 acres to 9,000 acres. A summary of the main works completed during the year is : Clearing .. .. .. .. .. 1,033 acres. Grassing .. .. .. .. .. 591 acres. Fencing .. .. .. .. .. 857 chains. Drains dug . . .. .. .. .. 715 chains. Roading .. .. .. .. .. 792 chains. Several farm buildings and dwellings have been connected to the electric-power-supply system, and a water-reticulation scheme has been installed and some roading carried out.

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