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radio astronomy for example, which have significantly strength- ened the nation's defense and space exploration capabilities. What distinguishes Bell Labs is its purpose. Bell Labs sees its mission, not as a random quest for "breakthroughs", but as a systematic, programmed undertaking aimed at constant improvement of Bell System service. Central to this effort are its continuing innovations in the nationwide telecommunications network--the materials, devices and apparatus that make up the network, the system in which they are arrayed and the methods by which the whole is managed and maintained. In this effort, Bell Labs does not stand alone. Rather it draws its strength from its continuous relationship with AT&T, the Bell Operating Companies, and WECO--from AT&T drawing overall guidance, from the Bell Operating Companies their perceptions of what is needed, and from WECO its practical, engineering and manufacturing experience. The work at Bell Labs can be described as both research and fundamental development, and specific design and development. The first involves searching for new knowledge in the fields of science relevant to communications. The second concerns the design of components, products, and systems for use in the Bell System. In all of its efforts, Bell Labs seeks to helpsBell Operating Companies keep down their operating expenses, increase their revenues with new products and services, and use thier existing communications facilities with maximum efficiency. WESTERN ELECTRIC COM~AN~f (WECO) The Western Electric Company, AT&T's manufacturing and supply unit, provides the massive and complex cmmunications network with equipment that is compatible, highly reliable, long- lasting, and reasonably priced. Just as Bell Labs develops new products, WECO's engineers work closely with Bell Labs' scientists to assure that new designs are practical from the manufacturing viewpoint and speed their introduction into public use. To facilitate this partnership, Bell Labs has branch laboratories at many WECO plants. WECO'S supply operations also keep costs down. By maintaining a nationwide network of service centers, WECO is able to respond rapidly to the Bell Operating Company needs, yet hold inventories to a minimum. Most of the service centers also refurbish and repair telephone equipment. In doing its job, WECO draws heavily on a broad spectrum of American industry. Over 40,000 suppliers in more than 4,787 cities in the United States provide WECO with materials for manufacturing operations, supplies for the Bell Operating Companies, and transportation services. Over 90 percent of these suppliers are small businesses. In its purchasing efforts, WECO provides assistance to business owned and operated by minorities.