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The production of indigenous timber under licence and permit from State forests totalled 112,216,000 board feet (100,443,000). Minor indigenous forest produce removed under permit comprised the following : poles, 5,003 (2,258); strainers, 17,626 (13,992); posts and stakes, 357,605 (313,618); stays, 7,288 (6,491); sleepers, 17,049 (2,406); house and pole blocks, 5,881 (1,295); mining timber, pieces, 54,569 (34,972); battens, 982,775 (501,600); bridge stringers, 165 (nil); and firewood, cords, 360 (352). The production of exotic forest produce under licence and permit was as follows : sawlogs, cubic feet, 7,339 (nil); battens, nil (2,100); mining timber, pieces, 3,700 (42,600); posts, 16,000 (nil); sleepers, 8,400 (nil); strainers, 100 (nil); stays, 90 (nil); and firewood, cords, 260 (259). 63. State Forest Log Sales. —In indigenous State forests in the Auckland and Rotorua Conservancies the State Forest Service continued its logging operations and produced 1,173,677 cubic feet (1,588,000) of logs, valued at £57,349 (£66,193). Minor forest produce extracted at the same time comprised the following: poles, 251 (nil) ; posts, 7,474 (8,312); strainers, 569 battens, 71,431 (60,000); rails, 366 (nil); house blocks, lineal feet, 4,450 (nil); mining timber, pieces, 3,100 (nil); and firewood, cords 11 (40). In exotic State forests logging operations by the Forest Service resulted in the production of 2,872,550 cubic feet (2,503,000), mainly for the Waipa Sawmill. Minor forest produce from exotic State forests extracted at the same time was as follows : poles, 1,905 (620); posts, 645 (2,933); rails, 1,430 (2,883); mining timber, pieces, 117,700 (117,656); round timber for creosoting, cubic feet, 7,815 (7,815); pulpwood, cords, 481 (nil); and firewood, cords, 5,238 (6,340). 64. Indigenous Timber Disposal.—An increase in the amount of cruising work completed during the year has been secured by the addition to the field staff of men trained in the timber-measurers' courses conducted by the State Forest Service, and further improvement can be expected as these men gain field experience. As a result of the year's work it has been possible in a few cases to prepare sale proposals ahead of sawmillers' requirements, and it now appears certain that the objective of keeping two years ahead will shortly be achieved, in spite of increased sales. A still further improvement in the timber-cruising position is anticipated as a result of the adoption of the sampling method, by which there is an appreciable saving of time and a consequent greater coverage by cruising parties. Instances, usually affecting Maori-owned forests, still occur in which it becomes necessary to disorganize the cruising programme in order to undertake the measurement of areas required urgently to keep mills in operation. Such disorganization may be avoided by the industry making early application for the timber. The quantity of sawn timber produced from indigenous State forests, together with that from Forest Service indigenous logging operations, amounted to approximately 120,000,000 board feet, which represents 33 per cent, of the total cut of all timbers and 49 per cent, of the indigenous timbers. Registered sawmills obtaining supplies from indigenous State forests during the year totalled 123, being 23 per cent, of all registered sawmills and 35 per cent, of those cutting principally indigenous timbers. Further information on this arid allied matters will be found in paragraph 109. 65. Rotorua Exotic Forest Log Production.—The cutting of the increased log-supply needed to maintain maximum production in the Waipa Sawmill necessitated the working of a forty-eight-hour week in the forests feeding this plant, a total of 2,582,138 cubic feet (2,254,734) being supplied. Deliveries from the Whakarewarewa Forest totalled 1,484,544 cubic feet (2,005,262), including 967,153 cubic feet (1,454,394) of insignis pine ; from Waiotapu Forest, 242,418 cubic feet (205,393), including 133,471 cubic feet (184,783) of insignis pine ; and from north-western Kaingaroa, 855,176 cubic feet (44,079) of insignis pine. Kaingaroa Forest will for some years be the principal source of

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