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South of Auckland reconstruction between Papakura and Clevedon is in progress, 5|- miles being nearly ready for sealing, and a short length has been treated in the Clevedon Township ; f mile was also sealed in the Howick division of the Howick-Manurewa highway. The reconstruction and sealing of 2 miles of the Te Kauwhata - Waitakaruru highway is nearing completion. On the Drury - Waiuku - Kohekohe highway work is in progress between Runciman and Paerata, 2 miles being sealed, while between Pukekohe and Puni 5§ miles were primed, of which 2| miles received a seal-coat. Four bridges and a large culvert were constructed on this highway. On the Piako County section of the Tahuna-Ohinewai highway 4J miles were reconstructed, and a 5-mile contract is in hand on the Waikato division. On the Pukekohe - Glen Murray highway reconstruction is in hand along the river on the Franklin County section, and this Council has also some heavy work in progress on the Pukekohe-Bombay highway. Reconstruction and sealing have been carried out over 3 miles of the Waikato division of the Taupiri-Morrinsville highway, and the Taupiri overbridge completed, except for some adjustment of access at the approaches. In the Piako County 6 miles are under construction, 3 miles having been metalled during the year. On the Hamilton-Raglan section reconstruction was continued in the Raglan County, 4J- miles being sealed, and a second coat applied over 5f miles of the Waipa division. The Puniu overbridge on the Te Awamutu - Bartons Corner highway was completed, and a length of 4J miles reconstructed on the Te Awamutu - Cambridge link. The 92 ft. Mangati Bridge was erected on the Te Awamutu - Pirongia highway. The Hamilton-Tauhci highway was improved by the sealing of 40 chains and the metalling of a further length of 3J miles. The 150 ft. Kaniwhaniwha Bridge on the Horotiu-Te Rore highway was erected and its approaches completed. Ninety chains of the Frankton-Pirongia highway were sealed, and a further 4 miles are in hand. The Morrinsville-Ngarua highway is now completely surfaced, If miles being added this year. Reconstruction and sealing are in progress on the Waipa County division of the KihikihiPutaruru highway. The sealing of the Piako County length of the Te Aroha - Waharoa highway was completed, and 2f miles reconstructed and sealed on the Ngatea-Waliaroa highway, between Kiwitahi and Walton. Sealing is being widened on the Pairere-Kaimai highway, and a reconstruction contract has been let for 5f miles from Pairere Junction to Hinuera. On the Waitoa-Taupo highway work is in hand south of Tokoroa, 10| miles of formation and 4§ miles of sealing being completed. The overbridge at Hamlin's was erected, and that at Putaruru South is in progress. A contract for the reconstruction and sealing of 3 miles of the Waihi Beach highway is in hand. On the Pipiroa-Coromandel highway 3J miles were sealed in the Hauraki Plains County division, and sea-wall protective work continued in the Thames County. The 138 ft. Tapu Bridge was erected, and the sealing between Waiau Bridge and Coromandel completed. The Coromandel - Mercury Bay highway was closed by flood damage for a short period, but repairs are now complete, and 4f miles from Whitianga to Kaimarama were sealed. Tauranga District. Reconstruction of the State highways has been appreciably advanced, and the sealing programme commenced. On the Paeroa-Whakatane highway, 1 mile was sealed at Kaituna and a similar length at Whakatane, while 5 J miles were reformed between Maniatutu and Matata. The Koutu overbridge at Rotorua was completed, &c., 3 miles of heavy formation carried out at Lake Rotorua on the Rotorua-Whakatane highway, and 2| miles of metalling near Whakatane. Reconstruction was commenced between Whakatane and Taneatua, and a 60 ft. bridge erected in the Waioeka Gorge. Reconstruction was continued over § inile on the Rotorua-Taupo highway, and south of Taupo the 80 ft. Waitahanui Bridge was erected. The Rangataiki Bridge on the Taupo-Napier highway is nearing completion. Reconstruction was continued on the Waitoa-Taupo highway, 8| miles being completed and metalled. On the Tauranga-Matamata highway the reconstruction on the Kaimai Hills was continued, 3f miles being completed, 2 miles primed, and l i miles sealed. The Boulder and Beacon Creek bridges 120 ft. and 200 ft. in length respectively, were completed. The Opotiki - Te Araroa coastal route is being considerably improved, 5 miles of reconstruction and seven bridges being completed during the year. Two miles of second-coat sealing were carried out in the Mount Maunganui Township, and preparation work is in hand between Rotorua and Lake Tarawera. Gisborne District. Construction works throughout this district were retarded in the normally active pre-winter period, April to early June, by the wide-spread need for concentrating on restoration of storm damage. The 1938-39 summer and autumn were favourable in the main, however, and enabled good progress to be made with some important works.

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