PART 3 of the Physics Bulletin of the Soviet Academy of Sciences for 1937 contains Dr. P. Kapitza's address to the Academy last March, which he devoted to an account of the new Institute founded by decree of December 1934. The building, which has taken a year longer to complete than was anticipated, is, although only 80 metres from Moscow tram lines, surrounded by gardens in which other institutes of the Academy are to be built. It nearly surrounds a quadrangle 40 m. X 25 m., with outer walls 63 m. x 50 m., the long side nearly north and south. The south-eastern corner is not built on, and gives access to the quadrangle. The main laboratories are on the ground floor, and provision for very sensitive apparatus is made in the basement. A first floor over the eastern block is occupied by the administrative department. By introducing a simplified system of book-keeping, Dr. Kapitza has reduced the five accountants originally thought necessary to one. The apparatus taken from Cambridge has been installed and is described. It includes the Metropolitan-Vickers alternator and the coil through which it is short-circuited to produce for 1/100 sec. an intense magnetic field, the hydrogen liquefier producing 7 litres per hour and the helium liquefier which first cools the gas to 65° absolute by means of liquid nitrogen, then to 10° abs. by adiabatic expansion and finally liquefies it by the Joule-Kelvin cooling. A new machine on this plan is now being constructed to work with a double cycle and deliver 6–8 litres per hour.