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Acknowledgments. In connection with my inspection of the various plantations, my thanks are especially due to the Superintending Nurserymen, Mr. If. A. Goudie and Mr. R. (!. Robinson, who gave me every facility Eor carrying i>ui my work. They also clearly recognize the importance of disease-control in afforestation, and are fully impressed with the necessity for immediate action should any serious disease appear m the plantations under their control. To Mr. W. c<. Morrison. Nurseryman ai Eanmer, I musi also express my thanks for his assistance. Lastly, to Mr. Jourdain of the Head Office, who not only accompanied me through the Etotorua district, but also gave me much valuable advice, my thanks are due. PART [I.—REVIEW OF FEAR'S OPERATIONS. A perusal of the reports of tin' several stations discloses the fact that the afforestation operations during the year have been very satisfactory. Through the South Island generally the weather-condi-tions have been somewhat unfavourable owing to the comparatively low rainfall, while in the North Island fairly favourable weather was experienced, except that one short spell of dryness in the autumn was responsible for a cessation of growth during that period. In the four nurseries, 8,951,045 trees were raised from seed during the year, and 7.588.285 trees were sent to the plantations. The area of land under plantations was increased l>\ l'.oOO) acres : making a, total of 16.310J acres planted since the commencement of operations. The stock of trees in the nurseries at the -'ilst March. 1011. was 21,786,740, and of this Dumber about nine million will lie transferred to the plantations during the coming winter. Prison Labour. The employment of prisoners at the plantations continues to be satisfactory, although the number employed during the year has been considerably less than last year. An average daily number of 41-2 prisoners performed work to the value of £3,744 6s. 9d.. and since prison labour was first utilized for this purpose the total value of work done is £32,265 Is. -td. Of the nature of the work performed, details appear in the reports supplied by the officers in charge, and, as much has been said in previous reports of the exceedingly valuable asset that the prisoners are building up for the country generally, it will suffice to say here that the scheme of employing prisoners should be continued, and. if opportunity affords, extended. At Hanmer Springs and Whakarewarewa Plantations tree labour has been employed in addition to the prison labour, bin at Waiotapu. where the largest prison camp is situated, almost all of the new country has been planted by prisoners. The remainder of a block in this locality of some T.iHM) acres will be allorested during the coming winter, and further planting will then be undertaken on a block of 30,000 acres of Crown lands recently reserved for this purpose on the Kainga roa Plains adjoining the present plantations in the Waiotapu Valley. A central position on the new reserve has been selected, and it is intended to shift the prison camp to the new site —some thirteen miles distant from the present one—towards the end of the current year. Extension-work in Central Otago. The initial fencing-work in connection with the recently acquired 1,200 acres of undulating ground immediately adjoining the Naseby Reservoir has completed, and the result of the first season's planting has justified the opinion formed regarding its adaptability for afforestation purposes. It is very evident that more surface moisture is available on the new area. and. as arrangements bave been made to collect information by inaugurating a meteorological station here, it will be interesting to compare records obtained with those taken on the Maniototo Plains. Preparations are well in hand for dealing with considerably over half a. million trees at Naseby during the approaching planting season, and this number greatly exceeds that operated with in any previous year in Central Otago. Survey Plans. Subdivisional plans of Waiotapu and Whakarewarewa Plantations have been completed, and. together "itli full information relative to the species of trees and acreage planted, accompany this report. As each of the smaller southern plantations possess defined boundaries, the necessity for havinu a survey made of these stations has not been so urgent, although every effort will be directed in presenting full working-plans of all plantations not already published in the ensuing returns.