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Rural Automatic Exchanges Initial supplies of small automatic exchanges for use in rural areas are now being received. These exchanges will provide a twenty-four-hour service and cater for a large number of subscribers on a party-line basis. Subscribers to these exchanges will have access to " parent " exchanges for purposes of making toll calls. The following is a list of places at which it is proposed to install rural automatic exchange units : Place. County. Place. County. Ahaura .. .. Grey. Ngahere .. .. Grey. Awhitu .. .. Franklin. Ohai .. .. Wallace. Beck's .. .. Maniototo. Oparau .. .. Kawhia. Donnelly's Crossing .. Hobson. Panetapu .. .. Otorohanga. Glen Murray .. Eaglan. Rotomanu .. .. Grey. Harihari .. .. Westland. South Hillend .. Southland. Hunua .. .. Franklin. Te Pahu .. .. Raglan. Ikamatua .. .. Inangahua. Wataroa .. .. Westland. Murupara .. .. Whakatane. Whangamata .. Thames. Moana .. .. Grey. Whitianga .. .. Coromandel. As only a limited number of rural automatic exchanges are available at present, some of the proposed exchanges may be established on a manual basis as a temporary measure, but they will be converted to automatic working when the equipment arrives in New Zealand. In addition to the above proposals it is also the intention to open automatic exchanges at many other localities in country areas, and to that end a survey is being conducted on a New-Zealand-wide basis to determine the places at which new exchanges are required. A programme of converting existing manually-operated exchanges to automatic operation will also be undertaken progressively in order to implement Government's policy of providing a twenty-four-hour telephone service throughout country areas. Proposed New Manual Exchanges Plans are being made for the establishment of manual telephone exchanges at Mangakino, in the Taupo County; Otira, in the Westland County ; and Tokoroa, in the Matamata County. Extension of Manual Exchanges To meet the demand for telephone service at manually operated exchanges, extra switchboard accommodation has been provided at fifty-nine such exchanges. TOLLS Increased Traffic During the year, 23,872,673 toll calls were dealt with, compared with 22,696,474 for the previous year, an increase of 5*2 per cent. (See also Table No. 7in Appendix.) Carrier-telephone Systems on Toll Routes Eight three-channel and twenty single-channel carrier-telephone systems were installed during the year on various toll routes throughout New Zealand. The total of forty-four additional long-distance circuits made available as a result of these installations has resulted in a marked improvement in toll service in both the grade of transmission and the speed of service. Pending some major alterations involving the complete rebuilding of the lines along the arterial toll routes or the substitution of aerial

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