most subscribers' installations has been renewed, using over 230 miles of wire.

Additional apparatus to ease the overloading of the Central and Kowloon Exchanges was completed during the year but, owing to the influx of large commercial establish- ments from Shanghai, Canton and other ports in China, the improved grade of service that should have resulted there- from has to some extent been offset by a considerable increase in calls per line. The latest figures show that the number of calls passing through Central Exchange equals that of the busiest of London exchanges. The number of exchange lines in the Central Exchange has been increased from 13,500 to 16,800, and in Kowloon good progress is being made in increasing the number of lines from 5,000 to 7,000. Sub-exchanges have been opened for service during the year at the Peak (500 lines), Repulse Bay (70 lines), Stanley (40 lines) and Tsun Wan (70 lines). Preparations are in hand to give service to Un Long in the New Territories.

A recently completed building at Causeway Bay is being used to house the company's stores and workshops, while two floors will be used to accommodate a 5,000 line telephone exchange to serve this area of the town.

A new modern 12 storey telephone building has been erected in Kowloon. This building has been requisitioned and is occupied by the Military Authorities.

During the year, underground cable work has been proceeding in preparation for the new exchange in the eastern end of the island. Over two miles of large size main cables, totalling 6,000 pairs, have been laid whilst a further two miles of similar cable is on order to cater for development and modernization in the western areas of Victoria. Outlying areas which have been without service since the war, owing to loss of cables during Japanese occupation, have now been joined into the main cable system.

The principal item in cable development on the main- land has been the laying of a new 1,000 pair cable to replace a 600 pair cable serving Nathan Road, which was badly damaged during the war years. District development has been carried out as suitable cables have been received from United Kingdom. New duct lines have been laid along Cheung Sha Wan Road to the end of Laichikok Road, along Cameron Road, Chatham Road and Tong Mi Road in pre- paration for giving service in these districts on receipt of cables already on order.

A new 150 pair cross-harbour cable has been ordered and will be laid in August, 1950. When this cable is in service, the total number of cross harbour circuits on the company's system will amount to 726 pairs.

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