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The following is a brief summary of the more important additions which have been made to telephone-exchange plant in order to provide for the steady demand for exchange service and to improve the standard of service for existing subscribers : — The laying or erecting of 81 miles of lead-covered cable containing 17,721 miles of wire for subscribers' circuits. The laying of 32| miles of underground cable ducts. The erection of 481 miles of pole-line and 4,795 miles of open-aerial wire for the connection of telephone-exchange subscribers' stations. The establishment of 85 public-call offices and pay-stations. The reconstruction or partial reconstruction of open-aerial systems at a large number of telephone-exchanges. The provision of additional switching-apparatus at 34 exchanges. The replacement of existing switchboards at 8 exchanges. The installation of branching multiple-switchboard equipment at the Otorohanga Exchange. The provision of an additional inter-office trunk cable between the Auckland Central, Remuera, and Devonport Exchanges. Practically the whole of the equipment for the new automatic telephone exchange at Napier has now been received, and the installation work is being proceeded with as rapidly as possible. It is expected that the cut-over of this exchange to automatic working will take place in December next. An order was placed in October last for the supply of equipment for the new automatic telephone exchange at Gisborne. The equipment is due to arrive in the Dominion towards the end of the year. The extension equipment for the St. Albans automatic exchange and the initial equipment for the two new sub-exchanges which are to be established at New Brighton and Mount Pleasant (Christchurch) have now arrived in the Dominion. Installation work is proceeding at St. Albans and will be commenced at New Brighton and Mount Pleasant at an early date. Equipment for an extension of the central exchange at Christchurch is under order and due to arrive shortly. Orders have been placed for the initial equipment for the establishment in the Auckland metropolitan area of new automatic exchanges at St. Heliers, Otahuhu, Mount Albert, and Avondale, and for extension equipment to be installed at the Devonport, Takapuna, Onehunga, Mount Eden, Remuera, Ponsonby, and Auckland Central automatic exchanges. Delivery of the equipment will be spread over a period of three years, and it is probable that eighteen months or two years will elapse before any appreciable portion of the equipment can be put into service. Extension equipment has been received for the Dunedin main exchange and for the Hamilton, Hastings, Hawera, Palmerston North, Masterton, Khandallah, and Miramar automatic exchanges, while equipment for the Whangarei, Courtenay Place, and Wellington Central exchanges is due in the near future. At Wellington Radio the erection of six steel towers is being undertaken to replace the wooden masts which were erected to support the new aerial system. On completion of this work the existing tower will be dismantled. Additional transmitting-equipment has been installed at both Wellington Radio and Awarua Radio to cope with the expanding services being provided by these stations. At Awarua Radio direction-finding equipment is being installed to assist in the navigation of aircraft in the projected trans-Tasman air-service. This will work in conjunction with similar equipment being installed at the new radio-station which is being established at East Tamaki (near Auckland) to cater adequately for the requirements of the trans-Tasman air-service in the matter of radio navigational aids. As a national memorial to the late Captain Musick and crew who perished in the " Samoan Clipper " in January, 1938, while returning to New Zealand after making the inaugural flight of the Auckland - Honolulu Air-mail Service, the site of the new station will be known as Musick Point, and the station will be named the Musick Memorial Station.

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