p.—l.

CABLE SERVICES. The Dominion continues to be efficiently represented by Mr. M. B. Esson on the Advisory Committee representing the Mother-country, the dominions, and colonies which was set up in connection with the cables and wireless merger to which reference was made last year. Government since the merger did not cease to press for a reduction in the cable rates from New Zealand to the United Kingdom and Ireland ; and it is now recorded that these representations, so ably pressed home by Mr. Esson, have at last borne fruit. Previously a full-rate cable message between New Zealand and Great Britain or Ireland cost Is. lid. a word. The charge from the Ist January is Is. Bd. a word, with corresponding reductions in cheap-rate messages. TELEPHONE-EXCHANGE SERVICES. The general experience in other countries indicates that the telephone business is one of the last to suffer from the effects of business depressions and one of the first to recover when conditions improve. As it was not until the closing portion of the year that any falling-off in the net increase of subscribers became evident, this is the experience also in New Zealand ; and it is hoped that the general experience will be further exemplified by a speedy return to the developmental conditions which have characterized the telephone service during the past few years. Continuous study is devoted to improving and modernizing the facilities provided by the telephone service, while keeping the cost as low as possible both to the public and to the Department. The improvements in long-distance communication and methods of operating that have been effected in the telephone service of the Dominion as a result of the application of the most advanced methods have increased the utility of the telephone very considerably, and have enabled a much superior service to be furnished without increase in cost to the user. In this way, the telephone is becoming an increasingly useful adjunct to the business and social world. The gradual extension of automatic-telephone service has been steadily proceeded with until at the present time New Zealand has in use a greater proportion of automatic telephones than any other country. CARRIER-CURRENT TELEPHONY. The development of long-distance telephone communication within the Dominion, which has been a feature of the Department's policy in recent years, has been advanced a further stage by the opening for commercial traffic of a number of additional carrier circuits between the principal centres and other important towns. The installation of the additional carrier-current systems, besides effecting a substantial improvement in the speech efficiency, stability, and reliability of the network of long-distance telephone-lines throughout the Dominion, has improved the service generally by relieving the congestion of traffic between certain of the larger centres, thus appreciably reducing the delays on long-distance toll communications. The facilities now provided enable practically all the important centres to obtain reliable telephonic communication amongst themselves at all hours. In the South Island the efficiency of the network of long-distance telephone communication was further enhanced by the installation at Timaru of voicefrequency amplifiers. By means of this additional equipment, two high-grade telephone circuits have been made available between Christchurch and Dunedin. Similar apparatus has also been installed at Christchurch and Wellington which, together with the additional carrier equipment, has resulted in a marked improvement in the volume, clarity, and reliability of the long-distance conversations over the various circuits with which the equipment is connected. RADIO TELEGRAPH AND TELEPHONE SERVICES. The institution of a radio-telephone service between New Zealand and Australia has been the principal radio development since the last report. This is also the most far-reaching venture to date in the sphere of the Department's radio operations. The installation work in the Dominion and the necessary testing were

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