F.—l.

been further reduced since the end of the year to Is. and 2s. respectively. In addition, arrangements have been made for parcels, except those containing tobacco and liquors, to be delivered free of Customs duty to members of the Expeditionary Force in Egypt. In regard to telegrams : a special rate of sd. a word, with a minimum charge of 2s. 6d., is available for messages to members of His Majesty's Forces serving abroad, the address being transmitted free. Unfortunately, Canada and Egypt have not yet been included in the arrangement, but negotiations are proceeding and finality is expected at an early date. Arrangements have, however, been made for the addresses of messages to our Forces in Egypt to be charged for as four words irrespective of length. A similar concession applies in respect of inland telegrams for soldiers in camps in New Zealand, the charge for the address in this case being as for five words. EMPIRE AIR MAIL-SERVICE. The outbreak of war in September caused the suspension of the Empire air-mail (" all-up ") scheme, in which New Zealand had participated advantageously for a period of thirteen months. Air mails in transit on the England-Australia service when war was declared were immediately diverted to surface transport. The operation of the service was, however, quickly resumed, but with reduced frequency and with a reversion to the former surcharge postage rate on letters from New Zealand of Is. 6d. a | ox. in place of the " all-up " rate of l|d. a % oz. TRANS-TASMAN SERVICE. It is|gratifying to record the direct connection of New Zealand by air with the England-Australia air mail-service. On the 30th April, 1940, the flying-boat " Aotearoa," under the command of Captain J. W. Burgess, crossed from Auckland to Sydney on the inaugural flight of a regular trans-Tasman service. The service is being operated once weekly in each direction, and, with good connections at Sydney with the service to and from London, it is expected that the transit time for mails exchanged between New Zealand and England will be reduced to approximately a fortnight. To facilitate the transmission and delivery of correspondence conveyed by the trans-Tasman service, inland air services both in Australia and in New Zealand are being utilized whenever expedited delivery will result. No additional charge for inland transmission by air is made in either country. The trans-Tasman service is being operated by Tasman Empire Airways, Ltd., under agreement with the United Kingdom, Australian, and New Zealand Governments. The performance of the service is being supervised by the Tasman Air Commission, comprising the following representatives of the three Governments United Kingdom: Sir Harry Batterbee, High Commissioner for the United Kingdom in New Zealand. Australia : Captain E. C. Johnston, D.F.C., Assistant Director-General of Civil Aviation in Australia. New Zealand : Mr. J. G. Young, Director-General, Post and Telegraph Department. OFFICE OF POSTMASTER-GENERAL. My colleague, the Hon. F. Jones, who assumed charge of the Department on the 6th. December, 1935, relinquished control on the 30th April last, on which date the administration of the Department came under my control. The report herein is a record of the activities of the Department during Mr. Jones's term of office. DETAILED REPORT. A detailed report of the Department's activities during the year ended on the 31st March, 1940, follows. I have the honour to be, Your Excellency's most obedient servant, P. C. Webb. General Post Office, Wellington, C. 1, 15th June, 1940.

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