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The number of cable messages, excluding Press, sent from New Zealand to international offices during the year shows an increase of 11-95 per cent, on the number sent during 1919-20, and the number sent to Australian offices shows an increase of 7-5 per cent. Messages from Australia increased by 11T7 per cent., and messages received from international offices by 10-97 per cent. The proportion of cable messages sent " via Pacific " was greater than that sent by the same route the previous year, the percentages being 70 and 67 respectively. The following table shows the total number of cable messages forwarded by each route during each of the past five years, and also the percentage of such traffic falling to each : — . Pacific. Eastern. Messages.- P ~f Yea, .Messages. *»-jfr 1916-17 .. .. 114,718 71 1916-17 .. .. 47,790 29 1917-18 .. .. 114,046 63 1917-18 .. .. 66,318 37 1918-19 .. .. 103,347 59 1918-19 .. .. 70,591 41 1919-20 .. .. 139,772 67 1919-20 .. .. 68,832 33 1920-21 .. .. 159,896 70 1920-21 .. .. 68,406 30 Press messages numbering 1,203 were sent via Pacific and 1,946 via Eastern, compared with 946 and 1,767 respectively during 1919-20. The number received via Pacific was 7,196 and via Eastern 2,726, compared with 7,345 and 2,620 respectively. The number of cable messages forwarded at the deferred rate was 17,668, compared with 17,827, a decrease of 159 messages, or 0-9 per cent. The acceptance of week-end messages to the United Kingdom via Pacific was resumed on the sth February, 1921, and from the United Kingdom and to and from Canada on the Ist March, 1921. On the 17th February, 1921, the Auckland-Sydney cable was interrupted. International messages via Pacific to Australia, which were in course of transmission when the interruption occurred, were diverted via New Zealand and Eastern at pro rata rates. Communication was restored on the following day. Wireless Telegraphy. The New Zealand wireless-telegraph stations, including Chatham Islands, Samoa, and Rarotongn,, have during the past year continued in operation at a high state of efficiency. Between the 20th December and 2nd January, 1921, F arrangements were made for the exchange of Christmas-greeting messages between New Zealand, Apia, and Rarotonga at a reduced rate, the tariff being half the ordinary rate. The concession was freely availed of. The number of forwarded radio messages shows a decrease of 2-86 per cent., while the number of received messages increased by B'6 per cent. The amounts earned by New Zealand, however, show a decrease under both headings of 27-68 and 7-8 per cent, respectively. Telephone Exchanges. Five exchanges were opened during the year, and none were closed. Additional switchboard accommodation was provided at 55 exchanges. There is now a total of 296 exchanges. The work of converting single-line earthworking systems to metallic circuits has proceeded steadily. At the end of the year there were 255 metallic circuit and 41 earthworking exchanges. The number of new subscribers connected during the year was 8,785, and 7,374 are awaiting connections. The number of party-line connections now stands at 5,394, with a total of 18,599 subscribers, an increase of 447 and 1,753 respectively. The total number of telephone-stations (meaning exchange connections of all kinds) in use in the Dominion on the 31st March, 1921, was 88,439. This includes 13,749 extensions and 3,914 bureau and service connections. The number of telephone-stations at the ten principal exchanges on the 31st March, 1921, was as follows : Auckland, 9,969 ; Christchurch, 8,065 ; Dunedin, 5,956 ; Gisborne, 2,257 ; Hamilton, 1,865; Hastings, 1,937 ; Invercargill, 2,129 ; Napier, 2,065 ; Wanganui, 2,321 ; Wellington, 10,615. The following table shows the distribution of telephones in the Dominion and the four chief centres : — ~ ... „, , v. Inhabitants Population. Telephones. m , , r r per ielephone. Dominion .. .. •• .. 1,218,270 88,439 14 Auckland 157,750 9,969 16 Wellington .. .. .. .. 107,428 10,61-5 10 Christchurch 104,972 8,065 13 Dunedin .. 73,537 5,956 12 The, telephone-exchange system now includes 5,441 miles of pole line and 192,027 miles of wire, as against 5,111 and 177,510 miles respectively for the preceding year. The total revenue received was £533,535, an increase of £114,227 on the previous year's figures.