Wallenquist became the first director of the observatory (1948-1970) and was succeeded by Tarmo Oja (1970-1999) and later Claes-Ingvar Lagerkvist (1999-2007).
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The observatory was the result of a donation in 1944 from Nils Tamm, an artist who had studied astronomy in his youth under Nils Christoffer Dunér and Östen Bergstrand in Uppsala and remained an avid amateur astronomer throughout his life.
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Through the work of professor Åke Wallenquist and professor Gunnar Malmquist at the observatory in Uppsala, the new observatory was fitted out with a large Schmidt telescope (100/135/300cm) in 1963.
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He worked at the Dutch Bosscha Observatory in Indonesia between 1928 and 1935, and became assistant professor at Uppsala's Kvistabergs Observatorium (Kvistaberg Observatory) in 1948.