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The General Manager ceases to be a member of the Board, but remains the chief executive officer. Thanks are due to all ex-members of the Board who so willingly gave up their time in the interest of the Board. 3. Staff In my two last reports I made reference to the difficulty which had been experienced in obtaining staff with the requisite qualifications. The position has somewhat improved, but the Board still requires the services of experienced officers. 4. Custody of Stores Except for the purpose of housing materials from dismantled camps and buildings, it was not originally the intention of the Board to set up a separate stores organization, all Government Departments being responsible for the holding, safeguarding, and accounting of the stores which they from time to time declare as surplus, but, consequent upon the purchase of the very large volume of stores from the United States Forces in New Zealand, it became necessary, and at short notice, to take over and staff a number of warehouses and stores at Auckland and Wellington. Following on the realization of substantial stocks taken over from the United States Forces, much of the storage space has been, and is being, made available for other purposes. 5. Stores ex United Kingdom Government Arrangements were completed whereby all United Kingdom surplus stores located in New Zealand were to be disposed of through the Board at an administrative charge on the proceeds. Negotiations are now in hand for the purchase by the Government of the remaining United Kingdom surplus stocks, as this will simplify disposal procedure. 6. Sales to Overseas Organizations Although substantial sales have been made to UNBBA, Netherlands East Indies, and other overseas organizations, further sales are unlikely. Sales to date are as follows : £ UNERA .. .. .. .. .. 479,971 Netherlands East Indies (clothing and medical stores, &c.) .. .. .. ..104,787 Others .. .. .. .. .. 37,976 622,734 7. German Reparations Arrangements were completed some months ago for the acquisition by the Government of machinery, plant, and machine tools in accordance with the Reparations Agreement. The Board has been appointed the responsible agent for the reception and disposal. The first shipment is due to arrive in New Zealand at an early date. After the requirements of Government Departments have been satisfied, applications to purchase reparations equipment will be called for from industry through out New Zealand. An endeavour will be made to allocate the equipment on a fair and

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