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A theory for use in the design of block-coded telemetry systems is delineated. This theory is useful in designing and testing the performance of one- and two-way phase-coherent telemetry systems when a phase-locked receiver preceded by a bandpass limiter is used to track the modulation. System analysis for either orthogonal or biorthogonal codes is given. Design trends, relating the various system parameters, for practical code sizes are presented in graphical form. Emphasis is placed on design situations where the data rate is large when compared to the design point bandwidth of the carrier tracking loop. This appears to be the case of greatest practical interest.