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CABLEGRAMS TO AND FROM MEN ON ACTIVE SERVICE ABROAD. The arrangement under which cablegrams to members of His Majesty's Army and Air Force abroad are accepted at specially reduced rates has been extended to messages to and from the armed forces in Egypt and Canada. During the period 13th December to sth January, nearly 58,000 cablegrams to members of the forces were lodged in the Dominion. This unprecedented volume of traffic caused a certain amount of unavoidable delay in the despatch of some of the messages from New Zealand. MACHINE-PRINTING TELEGRAPHS. In pursuance of the Department's policy of providing up-to-date facilities for the handling of telegraphic traffic at post-offices established at military camps, a teleprinter service was established recently between the Waiouru Military Camp Post-office and Wellington. Machine-printing apparatus is now installed in thirty-three of the Department's telegraph offices. AIR FORCE RECRUITS: TRAINING TN MORSE TELEGRAPHY. At the request of the Air Department, the Post Office undertook, as from July last, the training of Air Force recruits in Morse telegraphy. The recruits are required to attain a speed of eight words a minute, sending and receiving, before entering training camps. At the commencement of the scheme night classes were opened at thirty-six towns, the total number of recruits being 1,248. By December the number had increased to 1,850, and at the end of the year classes affording tuition to over 3,000 recruits were being conducted in forty towns. The scheme has recently been extended to permit of the training of approximately 250 naval telegraphist ratings. In addition, training in Morse operating is provided for Air Force recruits in country districts by means of broadcasts each night from the National Broadcasting Stations 2YC, IZM, and 3YL. This instruction also is given by officers of the Department. MULTI-CHANNEL CARRIER-FREQUENCY TELEGRAPH SYSTEMS. The installation of the four-channel carrier-frequency telegraph system between Christchurch and Greymouth, referred to in last year's report, was completed in June, 1940. All the principal West Coast stations now have direct telegraphic outlets to Christchurch. TOLL CHARGES. An amended scale of basic rates for toll calls became operative on the Ist September. In the new scale the full rate for toll calls exceeding 40 miles increases by 2d. for each 10-mile step up to 110 miles, by 4d. for each 20-mile step between 110 miles and 150 miles, and by 2d. for each 20-mile step beyond 150 miles. In the previous scale the rate increased by Id. for each 5-mile step up to 100 miles, by 2d. for each 10-mile step between 100 miles and 150 miles, and by Id. for each 20-mile step beyond 150 miles. In addition, the quarter-rate schedule was amended by rounding up the basic charge for a three-minute call to the next (higher) Id. in cases in which the basic rate included a Jd. After-hour Toll Facilities. The ever-increasing popularity of the toll service is reflected in the demand for toll calls by non-subscribers after ordinary office hours. The demand has been met at the smaller offices, as far as practicable, by providing telephones near exchange entrances, where callers can be attended to by the exchange staff. At the larger places and also at military camps, multi-coin machines are provided. Toll Concessions to Personnel at Military Camps and Air Force Stations. Commencing in May, 1940, uniformed personnel at military camps and Air Force stations^>/ere granted the concession of half-rates for toll calls effected from camp or Air Force post-offices during the normal full-rate period —i.e., between 8 a.m. and 6 p.m. EXTENSION OF TOLL SYSTEMS. The demand for toll service has been well maintained during the year, and the establishment of military camps and other Defence activities has necessitated the provision of improved and additional toll outlets in various parts of the Dominion. These increased facilities have been arranged principally by the establishment of the following carrier-current telephone systems : — Hamilton - New Plymouth .. .. .. One single-channel system. Hamilton-Ohakune .. .. .. . . One single-channel system. Ohakune - Palmerston North .. ■ .. .. One single-channel system. Waiouru Military Camp - Hamilton .. .. One single-channel system. Waiouru Military Camp - Palmerston North . . Two single channel systems. Wellington-Seddon . . . . .. .. One three-channel system. Christchurch - Hanmer Springs . . . . . . One single-channel system. Westport-Greymouth . . .. .. . . One single-channel system. Consequent on the installation of the additional Wellington-Seddon three-channel system, the number of direct telephone channels between Wellington and Christchurch was increased from seven to eight, while the allotment of direct toll outlets between Wellington and Blenheim was increased from three to four. In addition, better facilities have been provided between various centres by the erection, of new lines and/or the rearrangement of existing circuits.

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