I found the following using google from a 1985 article.  The trick
 seems to be to melt it:
 "To  make  sidetone  adjustable, remove R4  (R5  in  European
 networks)  and  replace it with R11 (for  European  networks  use  
Given that there is no standard European netowrk, I am not sure quite
wwhat this is saying.
  R12).   The Western Electric Network comes
point-to-point  wired
 and sealed in a can;  the other networks are mounted on PCBs.  To  
Yes, thankfully.
I think I have 4 American telepghones.
A WE/Bell 500 (rotary dail, with this potted network block)
A WE/Bell 564  (rotary dial, 5 line select buttons, again with the
network block. No I don't have a relay set for it)
A AE/GTE rotary dial telephone/ There's a PCB in the bottom carrying the
hybrid netowrk components and the hookswitch.
A 2500 DTMF set made by one of the ITT-related companies. This has a
smaller PCB (about the size of the network block in a WE phone) carrying
the hybrid network componetns/ The hookswtich is separately mounted to
the baseplate. This one has the rather odd 'chuttling ball' ringer. Alas
it ahs the modern DTMF dialer with an IC on it (it's a 5089 or similar, I
am sure).
Needless to say the PCBs don;t pose any real problems.
Incidentally, if anoy needs information on such telephoens, I've found
the sties 
http://www.telephonecollectors.info/ and
http://www.telephonetribute.com/ are worth looking at.
  remove  R4 from the Western Electric network, the can
has  to  be
 opened  by bending the holding tabs.  Don't be surprised to  find
 that  the network has been potted in a very sticky, odious  paste
 that has the texture of hot chewing gum and the odor of  unwashed  
Tha'ts the stuff alright ;-(. I fon't remember any smell though.
  shirts.  (This material - alleged to be manufactured
according to
 a  secret formula - will not wash off with soap and  water.   The  
Yes, I gound out that soap and water was no good when I got it all over
my hands...
I am suprised the formula was so secret, given that the scheamtics, etc
exist.
  phone company has a solvent for it, but because one of
the secret
 ingredients is said to be beeswax, ordinary beeswax solvents such
 as  gum  turpentine, mineral turpentine (paint thinner  or  white
 spirit)  and  kerosene  will work.)  To remove the  bulk  of  the  
Interesting. I am suprised the solvents I tried didn't appear to have
much effect. However, I may well try putting the module and can in some
white spirit (about the cheapest of those solvents) and leaving it.
  potting  compound,  heat the opened can for 30 minutes
in  a  300
 degree F (148 degree C) oven, or apply heat from a hot  hairdryer
 or heatgun.  You can also put the can out in the hot sun under  a
 sheet  of  glass.  Don't use too much heat  because  the  plastic
 terminal strip may melt.  Even with a film of compound  remaining  
Yes, I discovereth that the hard way ;-)
  on it, the network can be worked on."
 
http://www.machacking.net/kb/files/phonepatches.txt
 Hmm, I've made similarly sticky stuff using beeswax and lanolin and a
 bit of varnish.
 Old-timey potting compounds are nasty. 
I think some of the mdoern ones are even hardter to remove without
damaing the internals...
-tony