The nature of the country makes it inevitable that the postal service should show a loss for some time; but the telegraph service would show a profit over actual working expenses, but for the fact that so much is expended every year on extension, and this is credited to ordinary expenditure. £E18,500 was, however, borrowed from Egypt in 1900 to meet a special difficulty. The wooden poles were sometimes devoured by white ants, and were also liable to rot. After various experiments it was found best to bolt the poles on to steel bases, and it was to meet this emergency that the loan was contracted. The new plan has been found to answer admirably, and it has also facilitated telegraph extension, because the shorter poles (12 ft. 6 in. instead of 18 ft.) make a much more convenient load for a camel. Besides the wires along the railway, there is now telegraphic communication from Berber to Suakin, Suakin by Tokar to Kassala, Kassala to Gedaref, and Gedaref to Gallabat. A line from Gedaref connects at Messalamia with a line down the Blue Nile from Khartoum by Wad Medani to Sennar, which then crosses over to Goz Abu Goma on the White Nile, and is continued to Fashoda. Another line runs from Khartoum to Duem, on the White Nile, and thence to El Obeid. In time the telegraph will be continued south to Uganda, and whenever this takes place the telegraph tariff convention arranged by Mr. Cecil Rhodes for through communication between Alexandria and Cape Town will come into force. If the gross takings of the railways, post and telegraphs, and boats, are included in the revenues of the Soudan, the Budget wears a more imposing aspect than if only the net expenditure of each of these departments is included. The estimates for 1903 stand thus: £E. £E. Expenditure—Civil 624,226 Military 193,658 ------- 817,884 Receipts 428,163 ------- Deficit 389,721