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    "title": "Drug Abuse (7)",
    "citationUrl": "https://catalog.archives.gov/id/16987776",
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        "U.S. Congress. 1789-",
        "Crime",
        "Legislation",
        "Presidential messages"
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    "ocrText": "The original documents are located in Box 11, folder \"Drug Abuse (7)\" of the James M.\nCannon Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nSome items in this folder were not digitized because it contains copyrighted\nmaterials. Please contact the Gerald R. Ford Presidential Library for access to\nthese materials.\nDigitized from Box 11 of the James M. Cannon Files at the Gerald R. Ford Presidential Library\nTHE WHITE HOUSE\nWASHINGTON\nMEETING WITH THE MEXICAN ATTORNEY GENERAL\nTuesday, June 8, 1976\n4:00 p.m. (10 minutes)\nOval Office\nFORD LIBRARY\nFrom: Jim Cannon\nI. PURPOSE\nTo thank the Mexican Attorney General (Pedro Ojeda-Paullada)\nfor the excellent cooperation he and his government have shown\nin the fight against drug trafficking and to urge continued\nclose cooperation between our two countries.\nII. BACKGROUND, PARTICIPANTS & PRESS PLAN\nA. Background: Mexico is the source of an estimated\n80 to 90 per cent of the heroin and more than half of the\nmarihuana available in the United States. Attorney General\nOjeda-Paullada has been a strong ally these past several\nyears as the United States and Mexico have worked to\nsuppress drug traffic. This year, for the first time, the\nMexican government used herbicides to destroy crops of\nopium and marihuana and this has resulted in the eradication\nof twice as much opium and marihuana as in any previous\nyear.\nOjeda-Paullada is extremely proud of his accomplishments\nbut sensitive to any implied criticism of the Mexican effort.\nThis is an opportunity for you to publicly commend him and\nat the same time urge continued close cooperation and\ngreater effort so far as the noneradication aspects of the\nMexican antinarcotic campaign are concerned.\nB. Participants: Attorney General Ojeda-Paullada\nAttorney General Edward H. Levi\nDEA Administrator Peter B. Bensinger\nAmbassador Sheldon B. Vance (State Department)\nAlexandro Gertz-Manero ( Assistant to the\nMexican Attorney General )\nRaul Ortiz y Ortiz (Interpreter)\nWhite House Staff: Brent Scowcroft, Jim Cannon and Dick\nParsons.\nC. Press Plan: White House Press photo opportunity.\nMeeting to be announced.\n2\nIII.\nTALKING POINTS\n1. I am delighted to have a chance to meet you,\nsince I have heard a great deal from Peter\n(Bensinger), Sheldon (Ambassador Vance) and\nDick (Parsons) about your contribution to the\nfight against drug abuse.\n2. I was especially impressed at the results of the\nrecently completed opium eradication campaign.\nI am confident that we in this country will be\nable to see the results of that campaign within\na few months. I want you to know that we\nappreciate the efforts of your government in\nthis regard.\n3. You and President Echeverria have been very\nfar-sighted in devoting a high priority to this\nprogram. As you know, experience has shown that\nno nation is immune from drug abuse and producing\nnations inevitably become consuming nations unless\nstrong action is taken.\n4. We are taking strong action on our side of the\nborder as well. I have recommended legislation\nto ensure that major drug traffickers receive\nmandatory prison sentences upon conviction.\nI have also made a number of other recommendations\nto tighten up our laws in this area, and we are\nspending about $500 million a year to treat\nand rehabilitate addicts.\n5. As you know, Secretary Kissinger will be visiting\nMexico later this week, and I will be interested\nin receiving his report upon his return.\n6. I look forward to meeting your new President\nsome time following your country's upcoming\nelection so that we might continue the dialogue\nthat has been established concerning mutual\ncooperation in the fight against drugs.\nTHE WHITE HOUSE\nWASHINGTON\nMEETING WITH THE MEXICAN ATTORNEY GENERAL\nTuesday, June 8, 1976\n4:00 p.m. (10 minutes)\nOval Office\nFrom: Jim Cannon\nI. PURPOSE\nTo thank the Mexican Attorney General (Pedro Ojeda-Paullada)\nfor the excellent cooperation he and his government have shown\nin the fight against drug trafficking and to urge continued\nclose cooperation between our two countries.\nII. BACKGROUND, PARTICIPANTS & PRESS PLAN\nA. Background: Mexico is the source of an estimated\n80 to 90 per cent of the heroin and more than half of the\nmarihuana available in the United States. Attorney General\nOjeda-Paullada has been a strong ally these past several\nyears as the United States and Mexico have worked to\nsuppress drug traffic. This year, for the first time, the\nMexican government used herbicides to destroy crops of\nopium and marihuana and this has resulted in the eradication\nof twice as much opium and marihuana as in any previous\nyear.\nOjeda-Paullada is extremely proud of his accomplishments\nbut sensitive to any implied criticism of the Mexican effort.\nThis is an opportunity for you to publicly commend him and\nat the same time urge continued close cooperation and\ngreater effort so far as the noneradication aspects of the\nMexican antinarcotic campaign are concerned.\nB. Participants: Attorney General Ojeda-Paullada\nAttorney General Edward H. Levi\nDEA Administrator Peter B. Bensinger\nAmbassador Sheldon B. Vance (State Department)\nAlexandro Gertz-Manero ( Assistant to the\nMexican Attorney General )\nRaul Ortiz y Ortiz (Interpreter)\nWhite House Staff: Brent Scowcroft, Jim Cannon and Dick\nParsons.\nC. Press Plan: White House Press photo opportunity.\nMeeting to be announced.\n2\nIII.\nTALKING POINTS\n1. I am delighted to have a chance to meet you,\nsince I have heard a great deal from Peter\n(Bensinger), Sheldon (Ambassador Vance) and\nDick (Parsons) about your contribution to the\nfight against drug abuse.\n2. I was especially impressed at the results of the\nrecently completed opium eradication campaign.\nI am confident that we in this country will be\nable to see the results of that campaign within\na few months. I want you to know that we\nappreciate the efforts of your government in\nthis regard.\n3. You and President Echeverria have been very\nfar-sighted in devoting a high priority to this\nprogram. As you know, experience has shown that\nno nation is immune from drug abuse and producing\nnations inevitably become consuming nations unless\nstrong action is taken.\n4. We are taking strong action on our side of the\nborder as well. I have recommended legislation\nto ensure that major drug traffickers receive\nmandatory prison sentences upon conviction.\nI have also made a number of other recommendations\nto tighten up our laws in this area, and we are\nspending about $500 million a year to treat\nand rehabilitate addicts.\n5. As you know, Secretary Kissinger will be visiting\nMexico later this week, and I will be interested\nin receiving his report upon his return.\n6. I look forward to meeting your new President\nsome time following your country's upcoming\nelection so that we might continue the dialogue\nthat has been established concerning mutual\ncooperation in the fight against drugs.\n6/8/76 Dech- Did in we alvance? know\nabout This Foreign Policy: News\nN-2\nforts to cut the flow of cocaine from Bolivia.\nSecretary Kissinger and Bolivian President Hugo Drugs Banzer Suarez\nHAK, Bolivian Pres. Issue Communique\nagreed Monday on the necessity of both governments to step up ef\nThe agreement was announced in a communique which also\nexpressed the satisfaction at the high level of understanding\nand cooperation between the government and people of the two\ncountries.\nThe communique was issued shortly before Kissinger's depar-\nture for Santiago for a meeting at the OAS.\nBefore Kissinger arrived, some 60 political prisoners were\nfreed from Chilean jails. AP, UPI, ABC -- (6/7/76)\nU.S. Loans to Support British Pound\nThe United States and nine other industrial nations Monday\noffered to loan Britain more than $5 billion to support the plunging\npound.\nUnder the terms of this temporary credit, the bank of England\ncan borrow up to $2 billion from the U.S. government. ABC, CBS - (6/7)\nN. Vietnamese Deny POW's Remain\nThe North Vietnamese government said Monday there are no\nremaining American prisoners of war in North Vietnam.\nA Michigan VFW delegation, who met with the North Vietnamese\nin Paris last week, said Friday they had the impression there still\nwere POW's in that country. ABC, CBS -- (6/7/76)\nCastro Says Cuba Not Involved with JFK Assassination\nPremier Fidel Castro said Monday that Cuba had no part in\nthe assassination of John F. Kennedy.\nHis remarks, reported by Havana radio, were intended to refute\na revival of recent theories that Cuba was responsible for the\nKennedy death. CBS -- (6/7/76)\nRECEIVED\nJUL 29 1976\nCENTRAL FILES\nfile\nJustice - drugs\nTHE WHITE HOUSE\nWASHINGTON\nJune 8, 1976\nDear Congresswoman Fenwick:\nBecause of my personal involvement in overseeing the Federal\ndrug program for the President, Tom Loeffler forwarded your\nletter of May 6 to me.\nFirst, I want to thank you, on behalf of the President and\npersonally, for your support of the Federal program to control\ndrug abuse. As you know, this is a program to which the\nPresident has devoted a great deal of personal time for many\nmonths and one which he considers to be of highest priority.\nIn 1972, the Congress enacted P.L. 92-508, which authorized\nand requested the President to declare the week of October 15\nas \"National Drug Abuse Prevention Week.\" Since that time, the\nthird week of October has been proclaimed \"National Drug Abuse\nPrevention Week.\" In the expectation that the third week of\nOctober 1976 would be SO designated, many organizations across\nthe country are already planning against that schedule. Thus,\nto set July 13-August 13 as \"National War on Drugs Month\" at\nthis late date would cause considerable confusion and difficulty.\nYou may be sure, however, that the high priority the President\nplaces on combating drug abuse will continue for as long as\nthe problem exists.\nThank you for writing and for your support of the President's\nprogram in the drug abuse prevention area.\nKind personal regards.\nSincerely\nlaw\nJames M. Cannon\nAssistant to the President\nfor Domestic Affairs\nGERALE FORD ETBRARY\nThe Honorable Millicent Fenwick\nUnited States House of Representatives\nWashington, D. C. 20515\nRECEIVED\n1976\nENTRAL FILES\nJune 8, 1976\nDear Congresswoman Fenwick:\nBecause of my personal involvement in overseeing the Federal\ndrug program for the President, Tom Loeffler forwarded your\nletter of May 6 to me.\nFirst, I want to thank you, on behalf of the President and\npersonally, for your support of the Federal program to control\ndrug abuse. As you know, this is a program to which the\nPresident has devoted a great deal of personal time for many\nmonths and one which he considers to be of highest priority.\nIn 1972, the Congress enacted P.L. 92-508, which authorized\nand requested the President to declare the week of October 15\nas \"National Drug Abuse Prevention Week.\" Since that time, the\nthird week of October has been proclaimed \"National Drug Abuse\nPrevention Week.\" In the expectation that the third week of\nOctober 1976 would be so designated, many organizations across\nthe country are already planning against that schedule. Thus,\nto set July 13-August 13 as \"National War on Drugs Month\" at\nthis late date would cause considerable confusion and difficulty.\nYou may be sure, however, that the high priority the President\nplaces on combating drug abuse will continue for as long as\nthe problem exists.\nThank you for writing and for your support of the President's\nprogram in the drug abuse prevention area.\nKind personal regards.\nSincerely,\nJames M. Cannon\nAssistant to the President\nfor Domestic Affairs\nThe Honorable Millicent Fenwick\nUnited States House of Representatives\nWashington, D. C. 20515\nJMC:RDP:EEJ:MED:med\nFORD is LIBRARY\nbec: Tom Loeffler\nEd Johnson, OMB\nJune 8, 1976\nDear Congresswoman Fenwick:\nBecause of my personal involvement in overseeing the Federal\ndrug program for the President, Tom Loeffler forwarded your\nletter of May 6 to me.\nFirst, I want to thank you, on behalf of the President and\npersonally, for your support of the Federal program to control\ndrug abuse. As you know, this is a program to which the\nPresident has devoted a great deal of personal time for many\nmonths and one which he considers to be of highest priority.\nIn 1972, the Congress enacted P.L. 92-508, which authorized\nand requested the President to declare the week of October 15\nas \"National Drug Abuse Prevention Week.\" Since that time, the\nthird week of October has been proclaimed \"National Drug Abuse\nPrevention Week.\" In the expectation that the third week of\nOctober 1976 would be so designated, many organizations across\nthe country are already planning against that schedule. Thus,\nto set July 13-August 13 as \"National War on Drugs Month\" at\nthis late date would cause considerable confusion and difficulty.\nYou may be sure, however, that the high priority the President\nplaces on combating drug abuse will continue for as long as\nthe problem exists.\nThank you for writing and for your support of the President's\nprogram in the drug abuse prevention area.\nKind personal regards.\nSincerely,\nJames M. Cannon\nAssistant to the President\nfor Domestic Affairs\nThe Honorable Millicent Fenwick\nUnited States House of Representatives\nWashington, D. C. 20515\nJMC:RDP:EEJ:MED:med\nFORD is LIBRARY\nbec: Tom Loeffler\nEd Johnson, OMB\nJune 8, 1976\nDear Congresswoman Fenwick:\nBecause of my personal involvement in overseeing the Federal\ndrug program for the President, Tom Loeffler forwarded your\nletter of May 6 to me.\nFirst, I want to thank you, on behalf of the President and\npersonally, for your support of the Federal program to control\ndrug abuse. As you know, this is a program to which the\nPresident has devoted a great deal of personal time for many\nmonths and one which he considers to be of highest priority.\nIn 1972, the Congress enacted P.L. 92-508, which authorized\nand requested the President to declare the week of October 15\nas \"National Drug Abuse Prevention Week.\" Since that time, the\nthird week of October has been proclaimed \"National Drug Abuse\nPrevention Week.\" In the expectation that the third week of\nOctober 1976 would be so designated, many organizations across\nthe country are already planning against that schedule. Thus,\nto set July 13-August 13 as \"National War on Drugs Month\" at\nthis late date would cause considerable confusion and difficulty.\nYou may be sure, however, that the high priority the President\nplaces on combating drug abuse will continue for as long as\nthe problem exists.\nThank you for writing and for your support of the President's\nprogram in the drug abuse prevention area.\nKind personal regards.\nSincerely,\nJames M. Cannon\nAssistant to the President\nfor Domestic Affairs\nThe Honorable Millicent Fenwick\nUnited States House of Representatives\nWashington, D. C. 20515\nFORD\nis\nJMC:RDP:EEJ:MED:med\nbcc: Tom Loeffler\nGERALD\nLIBRARY\nEd Johnson, OMB\nILLICENT FENWICK\nWASHINGTON OFFICE:\n5TH DISTRICT, NEW JERSEY\n1610 LONGWORTH HOUSE OFFICE BUILDING\nWASHINGTON, D.C. 20515\nTELEPHONE: (202) 225-7300\nCOMMITTEES:\nCongress of the United States\nDISTRICT OFFICES:\n41 NORTH BRIDGE STREET\nSOMERVILLE, NEW JERSEY 08876\nBANKING. CURRENCY AND\nHouse of Representatives\nTELEPHONE: (201) 722-8200\nHOUSING\nMashington, D.C. 20515\nPOST OFFICE BUILDING\nSMALL BUSINESS\n1 MORRIS STREET\nMORRISTOWN, NEW JERSEY 07960\nMay 4, 1976\nTELEPHONE: (201) 538-7267\nMAY 6 1976\nMr. Thomas G. Loeffler\nSpecial Assistant for Legislative Affairs (House)\nThe White House\n1600 Pennsylvania Avenue\nWashington, D. C. 20500\nDear Tom:\nI am writing on behalf of the National Committee to Declare War\non Drugs. They are extremely interested in having the President declare\nthe month from July 13 to August 13 National War on Drugs Month.\nMr. George Richardson, who is the founder of the organization,\nwas a colleague of mine in the New Jersey State Assembly, and he has\nworked extremely hard to reduce drug addiction in this country. I have\njoined him, as have many other people in New Jersey, by agreeing to be a\nmember of the State Advisory Board.\nThe War on Drugs Committee has been encouraged by the President's\nrecent statements about the drug problem and are very interested in\nincreasing the public awareness of the severity of the problem. Certainly,\na Presidential resolution such as they are suggesting would be a great help\nin that goal.\nAlthough I know that Mr. Richardson has written directly to the\nPresident, I am enclosing another copy of the letter for your information.\nThank you for your help.\nWith all good wishes,\nYours sincerely,\nMILLICENT Millient FENWICK\nFORD & GERALD LIBRARY\nMember of Congress\nMF:hk Enclosure. P.S. Congressman Peter Roduno and ) are Honorary\nCo. We Chairmen In N.J. to this was in Arups.\"\nare working Together m This in the Howe.\nM.F.\nTHIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS\nNATIONAL COMMITTEE TO DECLARE\nWAR ON\nDRUGS\n23 Fulton Street, Newark, N.J. 07102\nPhone: (201) 643-3740\nAWARDS NIGHT\nNEW JERSEY COMMITTEE\nApril 30, 1976\nNATIONAL PRESIDENT\nGEORGE RICHARDSON\nHONORARY CO-CHAIRMEN\nPresident Gerald L. Ford\nGOVERNOR BRENDAN T. BYRNE\nGOVERNOR WILLIAM T. CAHILL\nThe White House\nCHAISMAN\nDR. PETER SAMMARTINO, Chancellor\nWashington D.C.\nFairleigh Dickinson University\nCO-CHAIRMEN\nHON. RAYMOND BATEMAN,\nFormer President\nNew Jersey State Senate\nDear President Ford:\nDR. HORACE DEPODWIN, Dean\nRulgers University Graduate School\nof Business Administration\nCongratulations, and our very sincere gratitude,\nMRS. ROBERT MULHOLLAND, Founder\nMorris County, N.J.\nfor the very timely message you conveyed to Congress\nDope Open Golf Tournament\nand the nation about the \"clear and present danger\"\nVINCENT COLUCCI,\nVice President\nrepresenting by skyrocketing drug addiction levels\nNew Jersey A.F.L.-C.I.O.\nALTHEA GIBSON, Commissioner\nacross the nation.\nNew Jersey Sports Commission\nMARY G. ROEBLING,\nChairman of the Board\nAs you can see from the enclosed material, this is\nThe National State Bank\nCOMMITTEE\nexactly what our committee has been trying to warn the\nANDREW AXTELL, Commissioner\nNawYork/New Jersey\nnation about for the past three years.\nPort Authority\nJUDITH BOYD, Exec. Director\nN.J. Hospital Assn.,\nWe were particularly impressed by your warning that\nWomen's Auxiliary\nRALPH DUNGAN, Chancellor\nno federal effort against addiction could curb this\nN.J. Dept. of Higher Education\nscourge without the active support and cooperation of\nHON. ELDRIDGE HAWKINS\nN.J. State Assemblyman\ncitizens working within their own communities. One of\nJOEL JACOBSON, President\nN.J. Public Utilities Commission\nour major goals is to rally the American people to\nHON. RONALD OWENS\nface the very real threat of addiction to each of them, /\nN.J. State Assemblyman\nCLARA ALLEN. Director\nand to come together in local groups to support federal\nN.J. Communications\nWorkers of America\nwar on drugs efforts and initiate local supporting action.\nDONALD BURLINGAME\nYou could be of tremendous assistance in our efforts\nMarketing Consultant\nMARTIN GERBER, Director\nto rally the nation behind your call for citizen\nRegion 9, United\nAuto Workers Union\nparticipation.\nHON. WILLIAM HART\nMayor, East Orange, N.J.\nDR. WYNONA LIPMAN\nWill you please allow a few members of our committee\nN.J. State Senator\nROBERT NAROZANICK, President\nand some members of Congress who support our movement,\nN.J. Asphalt Pavement\nto meet with you and have you designate the month of\nContractors Association\nRICHARD PECKMAN, President\nJuly 13 to August 13, or so, National War On Drugs Month.\nN.J. Pharmaceutical Association\nBERNARD RUDD, ESQ.\nThis spans the time of both political conventions, at\nAttorney-At-Law\neach of which we hope to win a war on drugs plank in\nDR. HARRY SMITH, President\nEssex County College\ntheir platforms.\nJEFF STEWART, President\nDenhard and Stewart\nAdvertising, Inc.\nWe would follow your war on drugs declaration with a\nEUGENE WATSON, President\nEqual Opportunities Personnel\nseries of Walks Against Death, such as the one we had\nServices\nin Newark, in several cities across the nation. In\nfurther support we would also launch a series of\nTV and radio messages designed to involve the American\npeople and win their active support in a national effort\nto combat the scourge of addiction.\nMORE\nF.esident Gerald L. Ford, cont.\nPage 2\nIf you are interested in more background on our movement, we have\nhad some earlier correspondence with your office which was answered\nby Richard Parsons of the Domestic Council on June 25, 1975. During\nthe past three years we have also had several meetings with Hugh Morrow,\nof the Vice Presidents office, and he can also help to fill you in\non our work.\nWe know that through united action we can inspire the public to\nan effective response to our drug addiction crisis. We look forward\nto working with you in the very near future.\nSincerely yours,\nGenyC Rihanden\nGeorge C. Richardson\nPresident\nGCR:if\nENC.\nCC: Dr. James Cowan\nCongresswoman Millicent Fenwick\nDr. Peter Sammartino\nGERALD R. FORD LIBRARY\nGovernor Raymond Shafer\nCongressman Peter Rodino\nNATIONAL COMMITTEE TO DECLARE\nWAR ON\nDRUGS\n23 Fulton Street, Newark, N.J. 07102\nPhone: (201) 643-3740\nWARDS NIGHT\nEW JERSEY COMMITTEE\nTHE NEW YORK TIMES, WEDNESDAY, ÁPRIL 28, 1976\nATIONAL PRESIDENT\nEORGE RICHARDSON\n(ONC) ARY CO-CHAIRMEN\nGOVERNOR BRENDAN T. BYRNE\nPresident Asks Congress\nWILLIAM T. CAHILL\nCHAIRMAN\nDR. PETER SAMMARTINO, Chancellor\nTo Stiffen Antidrug Laws\nTairle gh Dickinson University\nO-CHAIRMEN\nHON. RAYMOND BATEMAN,\nFormer President\nBy PHILIP SHABECOFF\nNew Jersey State Senate\nDR. HORACE DEPODWIN, Dean\nSpecial to The New York Times\nRutgers University Graduate School\nof Business Administration\nWASHINGTON, April Service immediately upon ar-\nMRS ROBERT MULHOLLAND, Founder\nPresident Ford. calling growing riving in the United States rath-\nMorris County, N.J.\ndrug abuse \"a clear and present\ner than within 24 hours as now\nDope Open Golf Tournament\nthreat to the health and future\nVINCENT COLUCCI,\nof our nation,' asked Congress\nrequired. The 24 hours \"give\nVice President\ntoday to enact an \"aggressive\"\nample time to unicad- contra-\nNew Jersey A.F.L.-C.I.O.\nALTHEA GIBSON, Commissioner\nnew program to combat narco-\nband,\" Mr. Ford said.\nNew Jersey Sports Commission\ntics, including minimum man-\nCApproving the treaty for the\nMARY G. ROEBLING,\ndatory sentencds for traffick-\ninternational control of synthe-\nChairman of the Board\ners.\ntic drugs.\nThe National State Bank\nIn a message to Congress, the\nThe President also said he\nCOMMITTEE\nPresident said that the nation\nwould take a series of execu-\nANDREW AXTELL, Commissioner\n\"had not won the war on\nNew York/ New Jersey\ntive actions to fight the illegal\nPort Authority\ndrugs\" and that, in fact, previ-\nsale of drugs. He announced\nJUDITH BOYD, Exec. Director\nous gains in reducing the abuse\nthat he was establishing today\nN.J. Hospital Assn.,\nof narcotics wer now being\ntwo new Cabinet committees.\nWomen's Auxiliary\nlost. \"In human terms.\" Mr.\nOne\ncommittee\nwould\ndeal\nwith\nRALPH DUNGAN, Chancellor\nFord declared. drug abuse has law enforcement and the other\nN.J. Dept. of Higher Education\nbecome \"a national tragedy.\nHON. ELDRIDGE HAWKINS\nwould be concerned with drug\nThe President asked Congress\nN.J. State Assemblyman\nabuse prevention, treatment\nJOEL JACOBSON, President\nto give its first attention to\nand rehabilitation.\nN.J. Public Utilities Commission\nstronger action against the cri-\nMr. Ford also said he would\nHON. RONALD OWENS\nminal drug trafficker.\ndirect the Secretary of the\nN.J. State Assemblyman\n\"These merchants of death\nTreasury and the Commissioner\nCLARA ALLEN, Director\nwho profit from the misery and\nof Internal Revenue to develop\nN.J. Communications\nWorkers of America\nsuffering of others deserve the\na tax enforcement program\nfull measure of national revul-\nDONALD BURLINGAME\naimed at high-level drug traf-\nMarketing Consultant\nsion,\" he said.\nfickers, saying. \"We know that\nMARTIN GERBER, Director\nMandatory Sentences\nmany of the biggest drug deal-\nRegion 9, United\nAuto Workers Union\nAsserting that most convicted\ners do not pay taxes on the\nHON. WILLIAM HART\ntraffickers in heroin and similar\nenormous profits they make on\nMayor, East Orange, N.J.\ndrugs were receiving short\nthis criminal activity.\"\nDR. WYNONA LIPMAN\nsentnces or no sentences at all,\nCommenting that \"many\nN.J. State Senator\nROBERT NAROZANICK, President\nhe asked Congress to legislate\ncountries see drug abuse as Dri-\nN.J. Asphalt Pavement\nsentences of at least three\nmarily an American problem\nyears for a first offense, six\nand are unaware of the extent\nContractors Association\nRICHARD PECKMAN, President\nyears for a second offense and\nto which the problem is truly\nN.J. Pharmaceutical Association\nsix years for selling to a minor.\nglobal in scope,\" the President\nBERNARD RUDD, ESQ.\nMr. Ford said that the pur-\npromised to intensify diploma-\nAttorney-At-Law\nDR. MARRY SMITH, President\npose of this proposal \"is not\ntic efforts to enlist the widest\nFORD\nEssex County College\nto impose vindictive punish-\npossible commitments from\nment but to protect society\nother countries to cooperate in\nJEFF STEWART, President\nfrom those who prey upon it\nattacking the problem.\nDenhard and Stewart\nAdvertising, Inc.\nand to deter others who might\nGERALD\nLIBRARY\n'Fight the Scourge'\nEUGENE WATSON, President\nbe tempted to sell drugs.\"\n\"All of this will be of little\nEqual Opportunities Personnel\nThe following are other mea-\nServices\nuse, however, unless the Ameri-\nsures Mr. Ford asked Congress\ncan people rally and fight the\nto adopt to curb drug abuse:\nscourge of drug abuse within\nEnabling judges to deny bail\ntheir own communihies and\nfor defendants arrested for\ntheir own families,\" the Pres-\ndrug trafficking if the defen-\nident said. \"We cannot provide\ndants have reviously been con\nall the answers to young people\nvicted of a drug felony, or if\nin search of themselves, but we\nthey are on parole, are nonres-\ncan provide a loving and caring\nident aliens, are fugitives or\nhome: we can provide good\nwere arrested while in posses-\ncounsel; and we can provide\nsion of a false passport.\ngcod communities in which to\nChanging provisions of the\nlive.\"\nlaw to allow the seizure of\nIn 1973. President Nixon and\nboats, aircraft, other vehicles\nothers in his Administration as-\nand property used to smug-\nserted that the nation had\ngle drugs up to a value turned the corner\" on the drug\nof $10,000. The current ceiling\nproblem. But Mr. Ford's mes-\nfor the value of such ssizures\nsage today indicates that the\nis $2,500.\nproblem is worse than ever. He\nGEnacting a law requiring the\npointed out that more than 5,-\nforfeiture of cash or other per- 000 Americans a year die from\nsonal property found in the the improper use of drugs and\npossession of a narcotics viola- that perhaps hulf of all \"street\ntor when there is evidence the crimes\" are drug-related.\ncash was intended for use in \"In simple dollar terms, drug\nconnection with an illegal drug abuse costs us up to $17 billion\ntransacgio transaction.\na year.\" the President said.\n(Giving the Government au-\nWhen signing his message to\nthority to prevent profits made Congress, Mr. Ford said. \"Now\nfrom the illegal sale of drugs that the problem is worsening.\nfrom being smuggled out of we must not shrink from this,\ncountry.\nchallenge but rather redouble\nCRequiring masters of small cur efforts at all levels to pro-\nprivately owned boats to report vide the leadership and re-\nto the United States Customs sources to reverse the trend.\"\nNATIONAL COMMITTEE TO DECLARE WAR ON DRUGS\nP.O. BOX 915\nTHE STAR-LEDGER, Thursday, April 17, 1974\nNEWARK, N. J. 07101\nPHONE: 201-759-4309\nThousands march against drugs\nBy STANLEY E. TERRELL\nADDRESS COMMITTEE HEADED BY RICHARDSON\nNATIONAL COMMITTEE TO DECLARE\nAWARDS NIGHT\nNEW JERSEY COMMITTEE\nWAR ON\nNATIONAL PRESIDENT\nGEORGE RICHARDSON\nHONORARY CO-CHAIRMEN\nGOVERNOR BRENDANT. BYRNE\nDRUGS\nGOVERNOR WILLIAM T. CAHILL\nCHAIRMAN\nDR. PETER SAMMARTINO, Chancellor\n23 Fulton Street, Newark, N.J. 07102\nFairleigh Dickinson University\nCO-CHAIRMEN\nPhone: (201) 643-3740\nHON. RAYMOND BATEMAN,\nFormer President\nNew Jersey State Senate\nDR. HORACE DEPODWIN, Dean\nRutgers University Graduate School\nof Business Administration\nMRS. ROBERT MULHOLLAND, Founder\nMorris County, N.J.\nDope Open Golf Tournament\nLYBRARY\nVINCENT COLUCCI,\nVice President\nNew Jersey A.F.L.-C.I.O.\nFORD\nALTHEA GIBSON, Commissioner\nNew Jersey Sports Commission\nMARY G. ROEBLING,\nGENALD\nChairman of the Board\nThe National State Bank\nCOMMITTEE\nANDREW AXTELL. Commissioner\nNewYork/New Jersey\nPort Authority\nJUDITH BOYD, Exec. Director\nN.J. Hospital Assn.,\nWomen's Auxiliary\nRALPH DUNGAN, Chancellor\nN.J. Dept. of Higher Education\nHON. ELDRIDGE HAWKINS\nN.J. State Assemblyman\nWAR\nJOEL JACOBSON, President\nN.J. Public Utilities Commission\nHON. RONALD OWENS\nN.J. State Assemblyman\nON\nCLARA ALLEN, Director\nN.J. Communications\nWorkers of America\nDRUGS\nDONALD BURLINGAME\nS\nMarketing Consultant\nTELEVISIONSPECIAL\nMARTIN GERBER, Director\nRegion 9. United\nAuto Workers Union\nHON. WILLIAM HART\nMayor, East Orange, N.J.\nTHE STAR-LEDGER\nTO BE FILMED AT:\nDR. WYNONA LIPMAN\nN.J. State Senator\nSaturday, April 17, 1976\nROBERT NAROZANICK, President\nN.J. Asphalt Pavement\nWAR ON DRUGS\nContractors Association\nRICHARD PECKMAN, President\nN.J. Pharmaceutical Association\nAWARDS NIGHT\nBERNARD RUDD, ESO.\nAttorney-At-Law\nDR. HARRY SMITH, President\nEssex County College\nTHE FELT FORUM\nJEFF STEWART, President\nMADISON SQUARE GARDEN\nDenhald and Stewart\nAdvertising, Inc.\nFRIDAY, MAY 21\nEUGENE WATSON. President\nEqual Opportunities Personnel\nServices\nfile\nMEMORANDUM\ndrugs\nTHE WHITE HOUSE\nWASHINGTON\nJune 8, 1976\n18\nMEMORANDUM FOR:\nJim Cannon\nFROM:\nDick Parsons\nSUBJECT:\nPaul H. O'Neill's Memo of 6-7-76\nRe: Office of Drug Abuse Policy\nYou requested my comments and recommendations concerning the\nsubject memorandum.\nSummary of Memorandum\nCongress has included in the second supplemental bill, which\nthe President signed, a $250,000 appropriation for the Office\nof Drug Abuse Policy for the remainder of this fiscal year and\nthe transition quarter (i.e., October 1, 1976). The question\npresented by the memorandum is: Should the President propose\na rescission of the $250,000 appropriation or, in the alterna-\ntive, establish the office? OMB recommends that he propose a\nrescission of the $250,000.\nDiscussion\nAs you will recall, when the legislation establishing ODAP\ncame to the President, he decided to approve the bill because,\namong other things, this was the unanimous recommendation of\nall of the Republican Congressional leaders, based on the fact\nthat a veto of the bill could not be sustained. It is my\npersonal view that the proposed rescission would similarly not\nbe sustained. I assume, therefore, that the real reason to\npropose a rescission of the $250,000 is to permit the President\nto make a political statement concerning the proliferation of\ngovernment agencies and outline his attempts to decrease the\nsize of the Federal bureaucracy.\nIn my view, this is not the place where the President should\nmake his stand because of:\nthe intense public interest in doing something about\nthe drug abuse problem;\nthe apparent Congressional interest in addressing this\nmatter; and\nthe relatively small amount of money involved.\n2\nRecommendation\nI recomment Option 1. Establish ODAP and submit a 1977\nbudget for its continuation.\nODAP MEMORANDUM\nMESSAGE FOR DICK PARSONS\nHow do we square support of Option #1 and the President's\nstatement of March 20 that he would not seek appropriations\nfor the office?\nTo support Option 1, I need some statement getting over\nthis seeming contradiction.\nANSWER FROM DICK PARSONS:\na) The President did not \"seek\" appropriations for the\noffice; rather the appropriation was added at the\ninitiative of the Congress.\nb) The question is whether having indicated his disagreement\nwith the concept, further resistance serves any useful\npurpose. In my view, it does not. In fact, further\nresistance would be counterproductive.\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGION\nLOG NO.:\nDate:\nJune 7, 1976\nTime:\nFOR ACTION:\nCC (for information):\nPhil Buchen\nJim Cannon\nBob Hartmann\nMax Friedersdorf\nJack Marsh\nFROM THE STAFF SECRETARY\nDUE: Date:\nWednesday, June 9\nTime:\n2 P.M.\nSUBJECT:\nPaul H. O'Neill's memo 6/7/76 re Office of\nDrug Abuse Policy\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nsupport\nJan 1\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate\ndelay in submitting the required material, ple\nJim Connor\ntelephone the Staff Secretary immediately.\nFor the President\nfile\ndrug\nTHE WHITE HOUSE\nWASHINGTON\nJune 10, 1976\nDear Mr. Secretary:\nThe President appreciated your prompt\naction in designating representatives to\nwork with you in connection with activities\nof the Cabinet Committee for Drug Law\nEnforcement. He asked me to thank you for\nyour thoughtfulness in writing.\nWarm personal regards.\nSincerely,\nJames M. Cannon\nAssistant to the President\nfor Domestic Affairs\nThe Honorable William T. Coleman, Jr.\nSecretary of Transportation\nWashington, D. C. 20590\nMEMORANDUM\nDrugs\nTHE WHITE HOUSE\nWASHINGTON\nJuly 12, 1976\nMEMORANDUM FOR:\nJim Cannon\nFROM:\nDick Parsons\nD.\nSUBJECT:\nDrug Abuse Legislation\nArt Quern asked me to give you an update on where we are\nwith the President's drug legislation.\nAs you know, all of the legislation proposed by the\nPresident in his message on drug abuse has been introduced:\nin the House by Congressmen Staggers, Hutchinson, McClory,\nFrey and Carter; and in the Senate by Senators Scott (Pa.),\nEastland, Hruska, Thurmond and Buckley.\nHearings on the legislation before the Subcommittee to\nInvestigate Juvenile Delinquency (Birch Bayh, Chairman),\nof the Senate Judiciary Committee, have been scheduled for\nJuly 20 and August 5.\nHearings before the Subcommittee on Health and the Environ-\nment (Paul Rogers, Chairman), of the House Interstate and\nForeign Commerce Committee, have tentatively been scheduled\nfor late August.\nWe are in touch with John Rector, the key staff person on the\nBayh Subcommittee, in terms of lining up appropriate Adminis-\ntration witnesses.\nCC: Art Quern\nTHE PRESIDENT HAS seen\nGod's Got A Better Idea\nWeek of July 19, 1976\nTo Jerry,\nFrom \"Z\"\nVERSE\nthat\nProverbs 20:24\nLiving Bible\n#123\n\"Since the Lord is directing our steps why\ntry to understand everything that happens\nalong the way?\"\nPRAYER\nLord,\nAs human beings, we always want to know the \"why\" of everything.\nWe want to put all the pieces together ourselves and know all the details\nbefore they happen or after they have happened in our lives.\nBut if we really believe that You are guiding our lives and leading us along\nlife's way, we will not always try to figure You out.\nForgive me for my human nature that questions. I will do my best to question\nas little as I can.\nHelp me, Father, to accept Your guiding steps and walk in them.\nIn Jesus Name,\nAMEN\nCopyright © 1974\nWilliam J. Zeoli\nAll Rights Reserved\nORIGINAL RETIRED FOR PRESERVATION\nCENTRAL FILES\nMUSHED JUL 22'76\nSaw\n13 3\nMICH\nGOSPEL FILMS, INC.\nPOST OFFICE BOX 455\nMrs. Nell Yates\nMUSKEGON, MICHIGAN 49443\nThe White House\n616 / 773-3361\n1600 Pennsylvania Avenue\nWashington, D. C. 20500\n[Aug 19767\nCRIME\nQ. Mr. President, the latest FBI crime reports indicate\nthere have been reductions in violent crimes and crime\nagainst property.\nA.\n(Talking Points)\n1. It is better, and these reductions reflect the\nvigorous effort at all levels of government -\nlocal, state and Federal -- to reduce crime.\n2. But more must be done, and that's why I sent\nanti-crime legislation to Congress in June 1975,\nand additional legislation to curb drug abuse\nlast April.\n3. If Congress would act on this legislation, we\ncould do more to make people safe on the streets\nand safe in their homes.\n4.\nCongress should pass the mandatory minimum sentence\nlaw which would make imprisonment certain for\npersons convicted of Federal offense with a dan-\ngerous weapon and those convicted of kidnapping,\nhighjacking, and trafficking in heroin and other\nhard drugs.\n5.\nMore Almost Ehan half of all crime today is related to\ndrugs.\nFORD & 03RALO LIBRARY\n6.\nThe habitual drug felon should be denied bail\nif he is arrested for selling heroin or other\nhard drugs. If he is convicted, he should\nreceive a mandatory prison sentence that will\nkeep him out of the hard drug business.\nFORD i LIBRARY GERALD\nfile\nDrigs\nTHE WHITE HOUSE\nINFORMATION\nWASHINGTON\nAugust 12, 1976\nMEMORANDUM FOR:\nJIM CONNOR\nFROM:\nJIM CANNON\nSUBJECT:\nLynn Scowcroft Memorandum on\nCommitment for Narcotics Control\nAssistance to Bolivia\nI believe the President should approve the program\nrecommended by the Department of State and NSC\ncalling for up to $53 million in narcotics control\nassistance to Bolivia over seven years (FY 1977 to\nFY 1948), for the following reasons:\n1. Peru and Bolivia produce virtually all of the world's\ncoca (90 per cent plus), from which cocaine is\nmanufactured. The United States would be a\nprincipal beneficiary of reduced coca cultivation\nby either or both of these countries. Bolivia is\nready to cooperate with us now, and Peru isn't far\nbehind. In order to secure their cooperation,\nhowever, they must be assured of our financial\nassistance not just next year but in the years to\nfollow. They want to know we are committed to\ncompletion of the job, not just in getting it under\nway. That's why we must make a multi-year commitment.\n2. The package is for up to $53 million over seven years.\nIf the Bolivians fail to keep their end of the\nbargain or if the total cost of the program is less\nthan $53 million, we are not committed to further\nexpenditures.\n3. We are not necessarily talking about \"new\" money.\nI am advised that AID annually expends between\n$15 million and $30 million in Bolivia on programs\ndesigned to assist that country. I would argue, and\nthe State Department argues, that some (if not most)\nof the $45 million in AID money to be used for crop\nsubstitution would be chargeable against the normal\nAID to Bolívia. In effect, we would be killing two\nbirds with one stone: providing economic assistance\nto Bolivia and reducing the flow of narcotics into\nthis country.\nFORD is LIBRARY GERALD\n2\n4. While it is true that cocaine is not as high a\npriority drug as heroin, this country still has a\nvery significant interest in reducing the use of\nthis illicit narcotic. As you know, many in law\nenforcement believe that excessive cocaine use leads\nto extremely violent behavior. Moreover, there is\nno question but that the profits made in cocaine\ntrafficking are being used by organized crime to\nfinance other criminal endeavors. The $53 million\ncontemplated by this program is not being diverted\nfrom other narcotics control assistance programs.\nNor would this money be available for other\nanti-narcotics programs. Therefore, the question\nof priority is really a red herring.\nRECOMMENDATION\nApprove multi-year commitment, as recommended by the\nDepartment of State.\n1111 WILLIL HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nAugust 9, 1976\nParans\nDate:\nTime:\nFOR ACTION:\nCC (for information):\nPhil Buchen\nJack Marsh\nJim Cannon\nDave Gergen\nMax Friedersdorf\nFROM THE STAFF SECRETARY\nDUE: Date:\nWednesday, August 11\nTime:\n10 A.M.\nSUBJECT:\nLynn and Scowcroft memo re: Multiyear Budget\nCommitment for Narcotics Control Assistance to\nBolivia\nACTION REQUESTED:\nX\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nLevan GERALD STRAIN R. FORD\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\nJim Connor\ndelay in submitting the required material, please\nFor the President\ntelephone the Staff Secretary immediately.\nDrugs\nTHE WHITE HOUSE\nWASHINGTON\nJuly 30, 1976\nMEMORANDUM FOR:\nTHE HONORABLE WILLIAM E. SIMON\nSECRETARY OF THE TREASURY\nFROM:\nJAMES M. CANNON\nASSISTANT TO THE PRESIDENT FOR\nDOMESTIC AFFAIRS\nSUBJECT:\nStatus of the Narcotics Tax Enforcement\nProgram, Department of the Treasury\nAs you know, the President has placed a high priority on the\nFederal drug abuse prevention effort. In his April 27 message\nto the Congress on this subject, he directed\n\"\nthe Secretary of the Treasury to work with\nthe Commissioner of the Internal Revenue Service,\nin consultation with the Attorney General and the\nAdministrator of the Drug Enforcement Administration,\nto develop a tax enforcement program aimed at high-\nlevel drug traffickers.\"\nEarlier this week, the President asked me for a comprehensive\nstatus report on the drug abuse program and specifically\nabout IRS progress in their efforts. In order to tell the\nPresident where we are, I would appreciate having from you a\nbrief summary of the\n-- steps which have been taken to date;\n- remaining steps, with anticipated timing; and\n-- program objectives and planned resource levels.\nThis summary should also indicate what internal procedures\nIRS has established to handle referred cases, to initiate\ninvestigations and to follow up on cases.\nI would appreciate having this information by Thursday,\nAugust 5.\nThank you.\nfile\nAssignment for\nPassons\nTHE WHITE HOUSE\nwashington\nDrugs\nAugust 14, 1976\nTO:\nDICK PARSONS\nFROM:\nJIM CANNOM Jun\nWould you draft a letter from me to\nSecretary Simon setting forth the\nadditional things that need to be\ndone at\n-\nIRS in the Narcotics\nTask Enforcement Program?\nmany Thanks\nTHE WHITE HOUSE\nWASHINGTON\nAugust 9, 1976\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nDICK PARSONS D.\nSUBJECT:\nStatus of Narcotic Tax Enforcement Program\nYou requested a brief summary of the contents of Deputy\nSecretary Dixon's Report on the status of the IRS Narcotic\nTax Enforcement Program.\nBasically, the Deputy reports the following:\nSteps Taken to Date\n1.\nOn July 27, 1976 IRS and DEA signed a joint Memorandum\nof Understanding concerning the exchange of information\nbetween those two agencies. DEA has already supplied\nIRS with the names of 200 suspected narcotic violators\nand these names have been distributed to IRS field\noffices for \"appropriate follow-up.\"\n2.\nIRS and Customs are developing a similar agreement,\nproviding for the exchange of information between\nthose two agencies.\nRemaining Steps\n1.\nIRS anticipates issuing permanent Narcotic Tax Enforcement\nProgram guidelines to the field and establishing a\npermanent reporting system by September 30, 1976.\n2.\nIRS intends to maintain continuing liaison with DEA\nand Customs.\nProgram Objectives\n1.\nWithout committing himself to a specific number, the\nDeputy indicates a possible doubling of IRS narcotic-\nrelated investigations in FY 77.\n-2-\nGeneral Comment\nI am not terribly encouraged by the Deputy Secretary's\nreport. The DEA/IRS agreement is good as far as it goes,\nbut if one looks at it closely, one discovers that IRS has\nreally not committed itself to do very much with the names\nDEA supplies. IRS's posture, as reflected in Dixon's memo,\nis that, absent additional resources, it simply cannot do\nmuch more than it is already doing. This is based on the\nassumption that everything IRS is doing now is as important,\nif not more important, than a vigorous narcotic tax enforce-\nment program. If we are willing to buy this assumption,\nthen we should go after OMB. * On the other hand, if it is\nour view that the Narcotic Tax Enforcement Program should\nreceive priority over other IRS activities, we will have to\nfigure out a way to bring Commissioner Alexander on board\n(which won't be as easy as it sounds).\nWe should talk about this.\n*\nOMB takes the position that there is already $15 million\nin IRS's Budget for a narcotic tax enforcement program.\nYou should know, however, that this money has been diverted\nto general IRS programs over the past two fiscal years.\nCC: Dick Parsons\nOF\nTHE THE TREASURY\nTHE SECRETARY OF THE TREASURY\nWASHINGTON 20220\n1789\nAugust 5, 1976\nMEMORANDUM FOR THE HONORABLE JAMES M. CANNON\nASSISTANT TO THE PRESIDENT\nFOR DOMESTIC AFFAIRS\nSubject: Status of the Narcotics Tax Enforcement\nProgram, Department of the Treasury\nThe attached report is being forwarded to you in\nSecretary Simon's absence, even though he has not seen\nit.\nThe report contains a brief summary of steps taken\nto date to implement the program, remaining steps and\nprogram objectives, including planned resource levels.\nThe Commissioner of Internal Revenue is available to\nbrief you further at your convenience.\nIf additional information is needed, please advise\nme.\nGeorge\nActing Secretary\nAttachment\nRle\nTHE WHITE HOUSE\nDrago\nWASHINGTON\nFOR IMMEDIATE RELEASE\nAugust 24, 1976\nJOINT STATEMENT OF\nJAMES M. CANNON\nASSISTANT TO THE PRESIDENT FOR DOMESTIC AFFAIRS\nEXECUTIVE DIRECTOR, DOMESTIC COUNCIL\nand\nJAMES T. LYNN\nDIRECTOR, OFFICE OF MANAGEMENT AND BUDGET\nbefore the\nSENATE GOVERNMENT OPERATIONS COMMITTEE\nPERMANENT SUBCOMMITTEE ON INVESTIGATIONS\nMr. Chairman and Members of the Subcommittee:\nWe appreciate the opportunity to address a problem of great national\nconcern -- drug abuse. We have chosen to submit a joint statement\nsince both the White Paper on Drug Abuse and the Administration's\nbudget in this area were the result of close cooperation between the\nDomestic Council and the Office of Management and Budget.\nThe cost of drug abuse to the nation is staggering. Counting\nnarcotic-related crime -- estimated to account for as much as one\nhalf of all street crime -- health care, drug program costs and\naddicts' lost productivity as major items, the dollar cost is\nestimated at upwards of $17 billion per year. To that must be\nadded more than 5,000 deaths each year, and the incalculable burden\nof ruined lives, broken homes, and divided communities. Drug\nabuse is a problem which affects millions of Americans either\nFORD (TORAS\n2\ndirectly or indirectly and which strikes at the very heart of our\nnational well-being.\nPresident Ford has made reducing the tragic toll of drug abuse\none of his Administration's highest priorities, and has invested\na great deal of his time and attention to this effort. He\ninitiated and then endorsed a major study of the issue which has\nresulted in wide understanding and acceptance of the Federal\npolicy in this area, and in major improvements in agency operations.\nHe has met frequently with foreign heads of State, Members of\nCongress, and members of the Cabinet to seek ways to improve\nthe program. He has requested additional funds for both law\nenforcement and drug abuse treatment in accordance with White\nPaper recommendations, and proposed legislation to the Congress\naimed at getting drug traffickers off the street. He has created new\nCabinet committees to ensure that all government resources are\nbrought to bear on, the problem in a coordinated manner. He has\ndirected the Internal Revenue Service to develop a tax enforcement\nprogram aimed at high level traffickers. And he has brought the\nissue to the American public in several major addresses calling\nfor a national commitment to combatting this menace to the health\nof our nation.\nIn short, the President is deeply concerned about the ravages of\ndrug abuse on American society and his commitment to improving\nthe Federal narcotics program is absolute. We therefore view\n3\nthese hearings as extremely important, and offer our fullest\ncooperation and that of our staffs in helping you develop a\ncomplete and impartial understanding of this crucial and\ncomplex issue.\nBackground\nIn 1965, an epidemic of heroin use began in the United States.\nNew use (or incidence) increased by a factor of 10 in less than\nseven years. This epidemic began among minority populations\nliving in metropolitan areas on both coasts where use was\ntraditional (e.g., New York City, Washington, D.C., Los Angeles,\nSan Francisco), then spread to other population groups living\nin those same metropolitan areas and to other large metropolitan\nareas throughout the nation (e.g., Detroit, Boston, Miami,\nFORD\nPhoenix). By about 1970, heroin use had- begun to appear in\ncities of all sizes across the United States.\nWhen the full magnitude of this problem became apparent in the\nlate 1960's and early 1970's, the Administration, with strong\nCongressional support, responded quickly. A vigorous prevention\nand treatment component was added to the then-existing law\nenforcement efforts. Federal spending for a broad range of\nprograms aimed both at demand reduction (prevention, treatment,\nrehabilitation and research) and supply reduction (law enforcement\nand international control) tripled, and then tripled again -- all\nwithin five years. A variety of permanent and temporary offices\n4\nwere created to provide policy guidance, program oversight, and\ninteragency coordination of the rapidly expanding program.\nThese included:\nThe Cabinet Committee on International Narcotics\nControl (CCINC), created in 1971 to coordinate\nthe international control program.\nThe Special Action Office for Drug Abuse Prevention\n(SAODAP), created in 1971 to oversee and coordinate\nthe development of a comprehensive treatment and\nprevention program to balance the existing law\nenforcement program.\nThe designation of the head of the Justice Department's\nOffice of Drug Abuse Law Enforcement (ODALE) as Special\nConsultant to the President for Narcotics Affairs\nin 1972.\nThe creation of a special drug abuse staff within the\nDomestic Council.\nAs the drug program matured, many of these temporary offices were\nreplaced with permanent structures. By mid-1973, for example, the\nspecialized Domestic Council staff had evolved into a small\noffice in the Office of Management and Budget (OMB), and the\nexecutive directorship of CCINC had been transferred to the\nSenior Adviser for Narcotic Matters (S/NM) in the Department of\nState. In July 1973, ODALE was merged with the Bureau of\nNarcotics and Dangerous Drugs, the Office of National Narcotics\nIntelligence, and those U.S. Customs Service officers involved\nin drug intelligence and investigations to create a new Drug\nEnforcement Administration (DEA) in the Department of Justice,\nand the Attorney General was given overall responsibility for\ndrug law enforcement. Finally, by early 1974, the permanent\n5\nsuccessor to SAODAP, the National Institute on Drug Abuse\n(NIDA), was established in the Department of HEW's Alcohol,\nDrug Abuse, and Mental Health Administration. Over the next\n18 months, NIDA gradually assumed most of SAODAP's functions,\nallowing SAODAP to expire as scheduled on June 30, 1975.\nSufficient progress had been made by late 1973 and early 1974\nthat Administration spokesmen, including the former President,\nbegan to make cautious statements about \"turning the corner\non drug abuse.\" We now know that the very real progress which\nled to this confidence was, in the main, temporary and regional\nIn fact, at that very time, the underlying trends had already\nbegun to turn upward after having declined steadily for almost\ntwo years.\nBy the summer of 1974, Federal drug abuse program administrators\nbegan to realize that conditions were worsening and that the\ngains of prior years were being eroded. The deteriorating\nsituation was confirmed over the next several months and, by\nearly 1975, it was clear that a major drug abuse problem still\nfaced the nation.\nThe White Paper on Drug Abuse\nIn May of 1975, faced with evidence that the gains made in 1972\nand 1973 were being eroded and that the use and availability\nof drugs was again increasing, the President directed the\nDomestic Council to undertake a thorough review and assessment\n6\nof the effectiveness of the Federal program to control drug\nabuse. Almost 100 individuals from more than 20 different\ngovernment organizations participated in this review, and more than 30\nother individuals representing almost as many community organi-\nzations involved in the drug abuse area contributed valuable\nperspective and ideas to it.\nThe resulting report to the President entitled the White Paper\non Drug Abuse, won wide praise in the Congress and throughout\nthe country for its candor, practical tone, and sensible\nrecommendations. On December 27, 1975, after the White Paper's\nunanimous endorsement by the members of the Cabinet having\ndrug abuse responsibility, the President endorsed it and made\nit the centerpiece of a revitalized Federal program. We are\npleased, therefore, to note that you have already made the\nWhite Paper a part of the record of these hearings, and we\ncommend Chapters 1 and 3 to your attention as especially\nrelevant to your deliberations.\nSeveral basic themes of the White Paper have a direct bearing\non the questions concerning drug law enforcement which this\nsubcommittee is investigating. In the following paragraphs\nwe will discuss them, as well as the progress made to date in\nimplementing them.\nThe first major theme is that there should be more selectivity\nand targeting of Federal law enforcement efforts. These efforts\n7\nshould focus on the arrest of leaders of high-level trafficking\nnetworks, and should move away from \"street-level\" activities.\nHighest priority should be given to reducing the supply of\nthose drugs, such as heroin, which impose the greatest cost\non society.\nGreat strides have been made in shifting priorities since publica-\ntion of the White Paper. * For example:\nTotal Federal seizures of heroin increased 54 percent\nin the first three quarters of FY 76 over FY 75. During\nthe same period, the seizures of heroin by foreign\nlaw enforcement officials in cooperation with DEA\nincreased 137 percent.\nTotal DEA arrests of high-level violators increased\n41 percent in the first 9 months of FY 76 over FY 75,\nwhile arrests of lower level violators decreased\n22 percent. Arrests for heroin trafficking increased\nby 44 percent, while arrests for marihuana decreased\n11 percent.\nWe expect that DEA Administrator Bensinger and Customs Commissioner\nAcree will discuss these results in more detail when they appear\nbefore the subcommittee.\nA note of caution should be sounded concerning this concept\nof priorities. It does not suggest devoting all resources to\nthe higher priority drugs and none to lower priority drugs.\n*\nWhile not directly relevant to the current investigation,\nwe are proud to note that similar progress has been made\nin shifting priorities on the treatment side as well.\nFor example, the number of treatment slots filled by\nusers of low priority drugs has been cut by 57 percent\nbetween October and March, and the number of inefficient\noutpatient drug free slots has been reduced by 11 percent.\n8\nAll drugs are dangerous in varying degrees and should receive\nattention. Also, many investigative techniques are not easily\ntargeted by drug or even by level of violator. Often the arrest\nof a lower level violator may lead to the subsequent arrest\nof higher level violators; and many smuggling networks trade\nin a variety of drugs, so immobilizing the network for marihuana\nsmuggling removes a potential heroin network. Where resource\nconstraints force a choice, however, we believe the choice should\nbe made for the higher priority drug and the higher level\nviolator.\nThe second major White Paper theme of direct relevance to this\nsubcommittee is that we must mobilize, coordinate and utilize\nmore effectively all the resources of the Federal, State and\nlocal governments, and of the private community to combat drug\nabuse. While the task force which prepared the White Paper\nendorsed the \"lead agency\" concept, it concluded that opportunities\nexisted to more fully utilize the resources of the U.S. Customs\nService and the FBI within an integrated Federal law enforcement\nprogram. Further, the task force recommended that the Federal\nGovernment should take the lead in mobilizing the enormous\npotential resources available in State and local law enforcement\nagencies.\nThe most important need for increased cooperation and coordination\nwhich existed at the time the White Paper was being developed\n9\ninvolved the Drug Enforcement Administration and the U.S.\nCustoms Service. Under Reorganization Plan No. 2 of 1973, a\ndistinction is drawn between investigative and interdiction\nfunctions with respect to narcotics enforcement. The investi-\ngative function was given to DEA and the interdiction function\nleft with the Customs Service. Unfortunately, the distinction\nbetween interdiction and investigation was not made clear in the\nreorganization plan. This ambiguity led to jurisdictional\ndisputes between the agencies, and an interagency rivalry which\nhampered supply reduction efforts.\nThe most valuable contribution the White Paper made toward the\nresolution of these disputes was to focus the debate on a\nrelatively narrow set of issues, and to point out the considerable\nareas of agreement which existed but which were often overlooked.\nSince the White Paper's release, the working relationship\nbetween DEA and the Customs Service has improved markedly.\nFor example:\nLast December, officers of the U.S. Customs Service\nand the DEA signed and implemented a Memorandum of\nUnderstanding which outlines operating guidelines for\nimproving coordination between those agencies, thus\nsignalling an end to the rivalry which had hindered\nFederal drug law enforcement efforts for more than\nten years.\nTo respond to Customs' complaint that DEA was not\nproviding usable tactical intelligence in sufficient\nquantity, DEA established a small unit within its\nintelligence shop to work specifically on Customs\nrequirements. In addition, Customs has made provisions\nfor assigning three intelligence analysts to DEA's\nHeadquarters to ensure that DEA personnel are sensitive\n10\nto Customs' intelligence requirements, and that all\nrelevant information is passed, and Customs has\nassigned personnel to the interagency El Paso Intelligence\nCenter. The resulting flow of information from DEA to\nCustoms has increased sharply from a few hundred\nspecific items per month at the time the Memorandum\nof Understanding was signed to nearly one thousand\nper month now.\nIn June, 1976, DEA and Customs agreed on a procedure\nwhich permits Customs to debrief persons arrested for\ndrug smuggling at the border if DEA declines to do SO.\nThis had been a major Customs' complaint.\nAnother example of improved interagency cooperation and fuller\nutilization of all Federal resources is the Memorandum of\nUnderstanding signed by DEA and the Internal Revenue Service\nin July of this year which provides for the sharing of information\nconcerning suspected tax violations by major narcotics violators.\nIt is extremely important in our view to focus on the fiscal\nresources of narcotics traffickers, since we know that drug\ndealers do not pay income taxes on the enormous profits they\nmake on this criminal activity. We are hopeful that the new\nDEA-IRS agreement will promote the effective enforcement of the\ntax laws against high-level drug traffickers who are currently\nviolating the law with impunity.\nFinally, in May of this year the President established two new\nCabinet Committees -- one for drug law enforcement and the other\nfor drug abuse prevention, treatment and rehabilitation - to\nprovide direction for, and coordination of, Federal drug programs\nand activities. Both of these new Cabinet committees and their\n11\nsupporting working-level\nsubcommittees are now fully operational\nand extremely active. We are particularly impressed by the\nskill and enthusiasm shown by Attorney General Levi and DEA\nAdministrator Bensinger in launching the Cabinet Committee on\nDrug Law Enforcement, and by the tangible results of that committee's\nwork which are already apparent.\nSince many of the most serious drugs of abuse originate\nin foreign countries, our capability to deal with supplies\nof drugs available in the United States to a large degree relies\nupon the interest and capability of foreign governments to\ncontrol the production and shipment of illicit drugs. Recognizing\nthis, the President has spoken personally to Presidents Echeverria\nof Mexico and Lopez-Michelsen of Colombia and with Prime Minister\nDemirel of Turkey in an effort to strengthen cooperation among\nall nations involved in the fight against illicit drug traffic.\nFurther, at the President's direction, the Attorney General\nhas held several meetings with his counterparts from Mexico and\nPeru, and the Secretary of State has discussed mutual narcotics\ncontrol problems with the leaders of several nations. The\nPresident has endorsed the proposal of Mexican President Echeverria\nto establish a mechanism for formally exchanging information and\nideas between high-level coordinating bodies and he has reaffirmed\nthe Administration's commitment to continuing to provide\ncooperative enforcement through U.S. agents stationed overseas,\ntechnical and equipment assistance and formal training of foreign\n12\nenforcement officials.\nDrug Abuse Budget\nAfter endorsing the White Paper, the President ensured that his\nFY 77 budget request to the Congress was consistent with its\nmajor themes and recommendations.\nSpecifically, the President's FY 77 budget requests additional\nfunds to implement all major White Paper recommendations.\nAdditional resources are provided for:\nThe growing problem of amphetamine and barbiturate\nabuse. The White Paper concludes that chronic,\nintensive, and medically unsupervised use of amphetamines\nand barbiturates ranks just behind heroin abuse as\na major social problem affecting several hundred\nthousand Americans. To respond, the budget requests\nfunds for treatment demonstrations for abusers of\nthese substances, and provides 20 new positions\nwithin the Drug Enforcement Administration (DEA)\nfor strengthened regulatory and compliance activities\naimed at preventing diversion of amphetamines and\nbarbiturates from licit production;\nAdditional community treatment capacity. Funds were\nincluded for the National Institute on Drug Abuse (NIDA)\nto fund at least 7,000 new community treatment slots\nand to recover 1,000 lost to inflation, thus providing\nFederally-supported community-based capacity to treat\n102,000 individuals at one time. In addition, other\nmanagerial actions to ensure greater utilization of\nexisting community mental health institutions for drug\nusers, and the treatment capacity of the Bureau of Prisons,\nthe Veterans Administration, and the Department of\nDefense for their specialized clientele will be maintained;\nBetter targeting of law enforcement efforts at high\nlevel traffickers. The Drug Enforcement Administration\nwill add 82 positions for improved intelligence and\nlaboratory analysis aimed at supporting the existing\ninvestigation and enforcement effort, In addition,\nresearch will be focused on improving our capability to\n13\nmonitor drug abuse trends, and on developing tools\nand techniques to improve the productivity of\ninvestigators and agents;\nImprove job opportunities for ex-addicts. Additional\nfunds are provided for a joint HEW/Labor program to\ninvestigate ways to provide employment opportunities\nfor persons in and completing treatment, so that the\ndistressing situation of returning to the same\nconditions which led to drug use can be avoided. In\naddition, other managerial actions should ensure improved\napplication of our vocational rehabilitation and manpower\ntraining services to drug users;\nMaximizing effectiveness of border interdiction forces.\nA supplemental budget for the U.S. Customs Service\nhas been approved which provides for the development\nand procurement of a variety of technical devices\nto detect drugs, for better information on smuggling,\nfor additional detector dogs, and for improving radar\ncoverage of aircraft illegally penetrating the south-\nwestern United States.\nAll of these increases (with the exception of the new community\ntreatment capacity) are aimed at: (1) improving the selectivity\nand targeting in the use of the current budget; or (2) the\nmore effective mobilization, utilizaton, and coordination of\nresources already available in the Federal Government which\ncan be applied to the fight against drug abuse. Also, in\nline with this concept of utilizing existing resources better\nand capitalizing on opportunities to \"leverage\" Federal efforts\nwith those of State, local and foreign governments, the budget\nprovides for:\nContinued material and technical support for other\nnations involved in the fight against drug trafficking\nand for the training for foreign narcotics agents;\nContinuation of the DEA task force program which\ncapitalizes on joint Federal and local efforts, and\ncontinued training and laboratory support for State\nand local officers; and\n1-4\nA major multi-year program within the National Institute\non Drug Abuse to evaluate the outcome of various types\nof treatment.\nThe President's budget for FY 1977 requests more than $770 million\nfor an integrated program of prevention and treatment, as detailed\nin the following chart.\nDRUG ABUSE PREVENTION BUDGET\nOBLIGATIONS IN $ MILLION*\nDEMAND REDUCTION\nFY 75\nFY 76\nFY 77\nSAODAP\n13.0\n0.0\n0.0\nHEW\n-ADAMHA (NIDA)\n219.7\n232.0\n248.2\n-Office of Education\n4.0\n2.0\n0.0\n-Social and Rehabilitation Service\n79.0\n88.0\n94.0\n-Office of Human Development\n8.8\n8.8\n9.4\nDefense (Note 2)\n64.5\n58.7\n56.0\nVeterans Administration\n34.8\n36.7\n38.0\nJustice (Note 3)\n25.6\n24.0\n21.9\nAll Other\n8.2\n9.9\n10.5\n457.6\n460.1\n478.0\nSUPPLY REDUCTION\nJustice\n-Drug Enforcement Administration\n135.7\n155.0\n161.1\n-LEAA and other Justice\n38.5\n43.8\n40.7\nTreasury\n-Customs\n38.4\n46.3\n44.3\n-IRS\n13.2\n13.2\n13.2\nState (Note 4)\n32.0\n30.9\n34.0\nOther\n1.9\n2.1\n2.1\n259.7\n291.3\n295.4\n717.3\n751.4\n773.4\n*NOTES\n1. All figures adjusted from the FY 1977 budget documents to reflect supple-\nmental requests and Congressional action, and to eliminate the \"double\ncounting\" of drug abuse education, prevention and research activities by\nthe Department of Justice.\n2. Includes obligations for treatment of alcohol abuse.\n3. Includes only Bureau of Prisons and LEAA: does not include DEA spending on\nprevention and education which is included in the total DEA number below.\n4. Obligations during the July through September 1976 \"transition quarter\" will\nbe approximately one fourth of the annual rate for all of these accounts except\nthe State Department's obligations for international narcotics assistance.\nTQ obligations for this item could reach $15.6 million because of a large\ncarry-over from FY 1976.\n15\nThe Remaining Agenda\nIt should be clear from this discussion that we believe that a\ngreat deal of progress has been made over the past 15 months in\nrevitalizing and refocusing the Federal drug abuse program and\nputting it on a sound basis.\nBut there is more we are trying to do: Federal drug enforcement\nefforts can still be more narrowly focused on high level, inter-\nstate and international traffickers; our narcotics intelligence\nsystem --- despite progress in the past year -- is still weak;\nthe new IRS program aimed at drug traffickers who violate tax\nlaws has yet to prove itself effective; the potential contribution\nof the FBI and the U.S. Customs Service has yet to be fully\nrealized; and we can still do much more to develop a stronger\ninterface between Federal regulatory and compliance officials\nand their local counterparts.\nHowever, these are all problems of intra- or inter- agency management,\nnot of structure or statute. We are convinced that the necessary\norganizational entities and interagency mechanisms are already\nin place to deal with these problems, and we assure you that we\nwill closely monitor progress toward more coordinated, effective\nperformance. We strongly believe that any further organizational\nchanges mandated by law are not only unnecessary, but most likely\n16\nwould be disruptive. This is not the time for further delay\nand introspection concerning organizational structures; it is\ntime to work day-by-day to do the job better.\nWhat we need is for Congress to pass\nthe legislation which the President proposed in his April 27\nSpecial Message on Drug Abuse. This legislation is aimed at\nimproving our ability to put major traffickers in prison and at\nclosing loopholes in the law which allow too many traffickers to\nretain the profits from their evil trade.\nIt has become all too clear that gathering sufficient evidence\nto prosecute a trafficker does not guarantee his or her\nimmobilization. An indicted trafficker may be operating in a\nforeign country, out of reach of effective prosecution and\nsentencing. Even in the United States, indictment and arrest\ndo not guarantee immobilization; these events merely begin a\nlong criminal justice process during most of which the trafficker\nis now free to continue operating. At the end of this process,\nincarceration may be relatively short. This failure to immobilize\ntraffickers against whom a substantial case has been developed is\nvery costly -- costly in terms of wasted investigative resources\nand lowered morale, costly in terms of weakening the deterrent\nvalue of the law, and costly in terms of reduced public trust in\nthe criminal justice system.\n17\nNow that Federal law enforcement agencies are demonstrating the\nability to shift their focus to high level violators, we must\nmake the significant changes in the way the criminal justice\nsystem handles major traffickers after arrest to capitalize\non this progress. Accordingly, the President has proposed\nlegislation which will, among other things:\nRequire minimum mandatory prison sentences for persons\nconvicted of high-level trafficking in heroin and\nsimilar narcotic drugs;\nEnable judges to deny bail in the absence of compelling\ncircumstances for certain categories of notorious\ndefendants;\nRaise the value of property used to smuggle drugs\nwhich can be seized by administrative, as opposed to\njudicial, action (from $2,500 to $10,000), and,\nextend this forfeiture provision to include cash or\nother personal property found in the possession of a\nnarcotics violator.\nThese proposals are now before the Senate in the form of S.3411\nand S.3645.* These bills should receive bi-partisan support and\nswift Congressional passage. Anything this subcommittee can\ndo to ensure such prompt passage will represent a major contribution\nto the national anti-narcotic effort.\nThank you for this opportunity to present our views on this vital\nissue. We hope that these remarks are helpful.\n*\nIn addition, we urge prompt passage of S.1266, the implementing\nlegislation for the 1971 Convention on Psychotropic Substances,\nwhich the President also called for in his Special Message.\nTHE WHITE HOUSE\nWASHINGTON\nAugust 25, 1976\nTO:\nJim Cannon\nFROM:\nDick Parsons D.\nRE:\nFYI\nThe attached statement was\nsubmitted to the Subcommittee\nyesterday for inclusion in the\nrecord of its hearings.\nTHE WHITE HOUSE\nWASHINGTON\nFOR IMMEDIATE RELEASE\nAugust 24, 1976\nJOINT STATEMENT OF\nJAMES M. CANNON\nASSISTANT TO THE PRESIDENT FOR DOMESTIC AFFAIRS\nEXECUTIVE DIRECTOR, DOMESTIC COUNCIL\nand\nJAMES T. LYNN\nDIRECTOR, OFFICE OF MANAGEMENT AND BUDGET\nbefore the\nF,U\nSENATE GOVERNMENT OPERATIONS COMMITTEE\nPERMANENT SUBCOMMITTEE ON INVESTIGATIONS\nMr. Chairman and Members of the Subcommittee:\nWe appreciate the opportunity to address a problem of great national\nconcern -- drug abuse. We have chosen to submit a joint statement\nsince both the White Paper on Drug Abuse and the Administration's\nbudget in this area were the result of close cooperation between the\nDomestic Council and the Office of Management and Budget.\nThe cost of drug abuse to the nation is staggering. Counting\nnarcotic-related crime -- estimated to account for as much as one\nhalf of all street crime -- health care, drug program costs and\naddicts' lost productivity as major items, the dollar cost is\nestimated at upwards of $17 billion per year. To that must be\nadded more than 5,000 deaths each year, and the incalculable burden\nof ruined lives, broken homes, and divided communities. Drug\nabuse is a problem which affects millions of Americans either\n2\ndirectly or indirectly and which strikes at the very heart of our\nnational well-being.\nPresident Ford has made reducing the tragic toll of drug abuse\none of his Administration's highest priorities, and has invested\na great deal of his time and attention to this effort. He\ninitiated and then endorsed a major study of the issue which has\nresulted in wide understanding and acceptance of the Federal\npolicy in this area, and in major improvements in agency operations.\nHe has met frequently with foreign heads of State, Members of\nCongress, and members of the Cabinet to seek ways to improve\nthe program. He has requested additional funds for both law\nenforcement and drug abuse treatment in accordance with White\nPaper recommendations, and proposed legislation to the Congress\naimed at getting drug traffickers off the street. He has created new\nCabinet committees to ensure that all government resources are\nbrought to bear on the problem in a coordinated manner. He has\ndirected the Internal Revenue Service to develop a tax enforcement\nprogram aimed at high level traffickers. And he has brought the\nissue to the American public in several major addresses calling\nfor a national commitment to combatting this menace to the health\nof our nation.\nIn short, the President is deeply concerned about the ravages of\ndrug abuse on American society and his commitment to improving\nthe Federal narcotics program is absolute. We therefore view\n3\nthese hearings as extremely important, and offer our fullest\ncooperation and that of our staffs in helping you develop a\ncomplete and impartial understanding of this crucial and\ncomplex issue.\nBackground\nIn 1965, an epidemic of heroin use began in the United States.\nNew use (or incidence) increased by a factor of 10 in less than\nseven years. This epidemic began among minority populations\nliving in metropolitan areas on both coasts where use was\ntraditional (e.g., New York City, Washington, D.C., Los Angeles,\nSan Francisco), then spread to other population groups living\nin those same metropolitan areas and to other large metropolitan\nareas throughout the nation (e.g., Detroit, Boston, Miami,\nPhoenix). By about 1970, heroin use had begun to appear in\ncities of all sizes across the United States.\nWhen the full magnitude of this problem became apparent in the\nlate 1960's and early 1970's, the Administration, with strong\nCongressional support, responded quickly. A vigorous prevention\nand treatment component was added to the then-existing law\nenforcement efforts. Federal spending for a broad range of\nprograms aimed both at demand reduction (prevention, treatment,\nrehabilitation and research) and supply reduction (law enforcement\nand international control) tripled, and then tripled again -- all\nwithin five years. A variety of permanent and temporary offices\n4\nwere created to provide policy guidance, program oversight, and\ninteragency coordination of the rapidly expanding program.\nThese included:\nThe Cabinet Committee on International Narcotics\nControl (CCINC), created in 1971 to coordinate\nthe international control program.\nThe Special Action Office for Drug Abuse Prevention\n(SAODAP), created in 1971 to oversee and coordinate\nthe development of a comprehensive treatment and\nprevention program to balance the existing law\nenforcement program.\nThe designation of the head of the Justice Department's\nOffice of Drug Abuse Law Enforcement (ODALE) as Special\nConsultant to the President for Narcotics Affairs\nin 1972.\nThe creation of a special drug abuse staff within the\nDomestic Council.\nAs the drug program matured, many of these temporary offices were\nreplaced with permanent structures. By mid-1973, for example, the\nspecialized Domestic Council staff had evolved into a small\noffice in the Office of Management and Budget (OMB), and the\nexecutive directorship of CCINC had been transferred to the\nSenior Adviser for Narcotic Matters (S/NM) in the Department of\nState. In July 1973, ODALE was merged with the Bureau of\nNarcotics and Dangerous Drugs, the Office of National Narcotics\nIntelligence, and those U.S. Customs Service officers involved\nin drug intelligence and investigations to create a new Drug\nEnforcement Administration (DEA) in the Department of Justice,\nand the Attorney General was given overall responsibility for\ndrug law enforcement. Finally, by early 1974, the permanent\n5\nsuccessor to SAODAP, the National Institute on Drug Abuse\n(NIDA), was established in the Department of HEW's Alcohol,\nDrug Abuse, and Mental Health Administration. Over the next\n18 months, NIDA gradually assumed most of SAODAP's functions,\nallowing SAODAP to expire as scheduled on June 30, 1975.\nSufficient progress had been made by late 1973 and early 1974\nthat Administration spokesmen, including the former President,\nbegan to make cautious statements about \"turning the corner\non drug abuse.\" We now know that the very real progress which\nled to this confidence was, in the main, temporary and regional.\nIn fact, at that very time, the underlying trends had already\nbegun to turn upward after having declined steadily for almost\ntwo years.\nBy the summer of 1974, Federal drug abuse program administrators\nbegan to realize that conditions were worsening and that the\ngains of prior years were being eroded. The deteriorating\nsituation was confirmed over the next several months and, by\nearly 1975, it was clear that a major drug abuse problem still\nfaced the nation.\nThe White Paper on Drug Abuse\nIn May of 1975, faced with evidence that the gains made in 1972\nand 1973 were being eroded and that the use and availability\nof drugs was again increasing, the President directed the\nDomestic Council to undertake a thorough review and assessment\n6\nof the effectiveness of the Federal program to control drug\nabuse. Almost 100 individuals from more than 20 different\ngovernment organizations participated in this review, and more than 30\nother individuals representing almost as many community organi-\nzations involved in the drug abuse area contributed valuable\nperspective and ideas to it.\nThe resulting report to the President entitled the White Paper\non Drug Abuse, won wide praise in the Congress and throughout\nthe country for its candor, practical tone, and sensible\nrecommendations. On December 27, 1975, after the White Paper's\nunanimous endorsement by the members of the Cabinet having\ndrug abuse responsibility, the President endorsed it and made\nit the centerpiece of a revitalized Federal program. We are\npleased, therefore, to note that you have already made the\nWhite Paper a part of the record of these hearings, and we\ncommend Chapters 1 and 3 to your attention as especially\nrelevant to your deliberations.\nSeveral basic themes of the White Paper have a direct bearing\non the questions concerning drug law enforcement which this\nsubcommittee is investigating. In the following paragraphs\nwe will discuss them, as well as the progress made to date in\nimplementing them.\nThe first major theme is that there should be more selectivity\nand targeting of Federal law enforcement efforts. These efforts\n7\nshould focus on the arrest of leaders of high-level trafficking\nnetworks, and should move away from \"street-level\" activities.\nHighest priority should be given to reducing the supply of\nthose drugs, such as heroin, which impose the greatest cost\non society.\nGreat strides have been made in shifting priorities since publica-\ntion of the White Paper. * For example:\nTotal Federal seizures of heroin increased 54 percent\nin the first three quarters of FY 76 over FY 75. During\nthe same period, the seizures of heroin by foreign\nlaw enforcement officials in cooperation with DEA\nincreased 137 percent.\nTotal DEA arrests of high-level violators increased\n41 percent in the first 9 months of FY 76 over FY 75,\nwhile arrests of lower level violators decreased\n22 percent. Arrests for heroin trafficking increased\nby 44 percent, while arrests for marihuana decreased\n11 percent.\nWe expect that DEA Administrator Bensinger and Customs Commissioner\nAcree will discuss these results in more detail when they appear\nbefore the subcommittee.\nA note of caution should be sounded concerning this concept\nof priorities. It does not suggest devoting all resources to\nthe higher priority drugs and none to lower priority drugs.\n*\nWhile not directly relevant to the current investigation,\nwe are proud to note that similar progress has been made\nin shifting priorities on the treatment side as well.\nFor example, the number of treatment slots filled by\nusers of low priority drugs has been cut by 57 percent\nbetween October and March, and the number of inefficient\noutpatient drug free slots has been reduced by 11 percent.\n8\nAll drugs are dangerous in varying degrees and should receive\nattention. Also, many investigative techniques are not easily\ntargeted by drug or even by level of violator. Often the arrest\nof a lower level violator may lead to the subsequent arrest\nof higher level violators; and many smuggling networks trade\nin a variety of drugs, SO immobilizing the network for marihuana\nsmuggling removes a potential heroin network. Where resource\nconstraints force a choice, however, we believe the choice should\nbe made for the higher priority drug and the higher level\nviolator.\nThe second major White Paper theme of direct relevance to this\nsubcommittee is that we must mobilize, coordinate and utilize\nmore effectively all the resources of the Federal, State and\nlocal governments, and of the private community to combat drug\nabuse. While the task force which prepared the White Paper\nendorsed the \"lead agency\" concept, it concluded that opportunities\nexisted to more fully utilize the resources of the U.S. Customs\nService and the FBI within an integrated Federal law enforcement\nprogram. Further, the task force recommended that the Federal\nGovernment should take the lead in mobilizing the enormous\npotential resources available in State and local law enforcement\nagencies.\nThe most important need for increased cooperation and coordination\nwhich existed at the time the White Paper was being developed\n9\ninvolved the Drug Enforcement Administration and the U.S.\nCustoms Service. Under Reorganization Plan No. 2 of 1973, a\ndistinction is drawn between investigative and interdiction\nfunctions with respect to narcotics enforcement. The investi-\ngative function was given to DEA and the interdiction function\nleft with the Customs Service. Unfortunately, the distinction\nbetween interdiction and investigation was not made clear in the\nreorganization plan. This ambiguity led to jurisdictional\ndisputes between the agencies, and an interagency rivalry which\nhampered supply reduction efforts.\nThe most valuable contribution the White Paper made toward the\nresolution of these disputes was to focus the debate on a\nrelatively narrow set of issues, and to point out the considerable\nareas of agreement which existed but which were often overlooked.\nSince the White Paper's release, the working relationship\nbetween DEA and the Customs Service has improved markedly.\nFor example:\nLast December, officers of the U.S. Customs Service\nand the DEA signed and implemented a Memorandum of\nUnderstanding which outlines operating guidelines for\nimproving coordination between those agencies, thus\nsignalling an end to the rivalry which had hindered\nFederal drug law enforcement efforts for more than\nten years.\nTo respond to Customs' complaint that DEA was not\nproviding usable tactical intelligence in sufficient\nquantity, DEA established a small unit within its\nintelligence shop to work specifically on Customs\nrequirements. In addition, Customs has made provisions\nfor assigning three intelligence analysts to DEA's\nHeadquarters to ensure that DEA personnel are sensitive\n10\nto Customs' intelligence requirements, and that all\nrelevant information is passed, and Customs has\nassigned personnel to the interagency El Paso Intelligence\nCenter. The resulting flow of information from DEA to\nCustoms has increased sharply from a few hundred\nspecific items per month at the time the Memorandum\nof Understanding was signed to nearly one thousand\nper month now.\nIn June, 1976, DEA and Customs agreed on a procedure\nwhich permits Customs to debrief persons arrested for\ndrug smuggling at the border if DEA declines to do so.\nThis had been a major Customs' complaint.\nAnother example of improved interagency cooperation and fuller\nutilization of all Federal resources is the Memorandum of\nUnderstanding signed by DEA and the Internal Revenue Service\nin July of this year which provides for the sharing of information\nconcerning suspected tax violations by major narcotics violators.\nIt is extremely important in our view to focus on the fiscal\nresources of narcotics traffickers, since we know that drug\ndealers do not pay income taxes on the enormous profits they\nmake on this criminal activity. We are hopeful that the new\nDEA-IRS agreement will promote the effective enforcement of the\ntax laws against high-level drug traffickers who are currently\nviolating the law with impunity.\nFinally, in May of this year the President established two new\nCabinet Committees -- one for drug law enforcement and the other\nfor drug abuse prevention, treatment and rehabilitation -- to\nprovide direction for, and coordination of, Federal drug programs\nand activities. Both of these new Cabinet committees and their\n11\nsupporting working-level\nsubcommittees are now fully operational\nand extremely active. We are particularly impressed by the\nskill and enthusiasm shown by Attorney General Levi and DEA\nAdministrator Bensinger in launching the Cabinet Committee on\nDrug Law Enforcement, and by the tangible results of that committee's\nwork which are already apparent.\nSince many of the most serious drugs of abuse originate\nin foreign countries, our capability to deal with supplies\nof drugs available in the United States to a large degree relies\nupon the interest and capability of foreign governments to\ncontrol the production and shipment of illicit drugs. Recognizing\nthis, the President has spoken personally to Presidents Echeverria\nof Mexico and Lopez-Michelsen of Colombia and with Prime Minister\nDemirel of Turkey in an effort to strengthen cooperation among\nall nations involved in the fight against illicit drug traffic.\nFurther, at the President's direction, the Attorney General\nhas held several meetings with his counterparts from Mexico and\nPeru, and the Secretary of State has discussed mutual narcotics\ncontrol problems with the leaders of several nations. The\nPresident has endorsed the proposal of Mexican President Echeverria\nto establish a mechanism for formally exchanging information and\nideas between high-level coordinating bodies and he has reaffirmed\nthe Administration's commitment to continuing to provide\ncooperative enforcement through U.S. agents stationed overseas,\ntechnical and equipment assistance and formal training of foreign\n12\nenforcement officials.\nDrug Abuse Budget\nAfter endorsing the White Paper, the President ensured that his\nFY 77 budget request to the Congress was consistent with its\nmajor themes and recommendations.\nSpecifically, the President's FY 77 budget requests additional\nfunds to implement all major White Paper recommendations.\nAdditional resources are provided for:\nThe growing problem of amphetamine and barbiturate\nabuse. The White Paper concludes that chronic,\nintensive, and medically unsupervised use of amphetamines\nand barbiturates ranks just behind heroin abuse as\na major social problem affecting several hundred\nthousand Americans. To respond, the budget requests\nfunds for treatment demonstrations for abusers of\nthese substances, and provides 20 new positions\nwithin the Drug Enforcement Administration (DEA)\nfor strengthened regulatory and compliance activities\naimed at preventing diversion of amphetamines and\nbarbiturates from licit production;\nAdditional community treatment capacity. Funds were\nincluded for the National Institute on Drug Abuse (NIDA)\nto fund at least 7,000 new community treatment slots\nand to recover 1,000 lost to inflation, thus providing\nFederally-supported community-based capacity to treat\n102,000 individuals at one time. In addition, other\nmanagerial actions to ensure greater utilization of\nexisting community mental health institutions for drug\nusers, and the treatment capacity of the Bureau of Prisons,\nthe Veterans Administration, and the Department of\nDefense for their specialized clientele will be maintained;\nBetter targeting of law enforcement efforts at high\nlevel traffickers. The Drug Enforcement Administration\nwill add 82 positions for improved intelligence and\nlaboratory analysis aimed at supporting the existing\ninvestigation and enforcement effort, In addition,\nresearch will be focused on improving our capability to\n13\nmonitor drug abuse trends, and on developing tools\nand techniques to improve the productivity of\ninvestigators and agents;\nImprove job opportunities for ex-addicts. Additional\nfunds are provided for a joint HEW/Labor program to\ninvestigate ways to provide employment opportunities\nfor persons in and completing treatment, so that the\ndistressing situation of returning to the same\nconditions which led to drug use can be avoided. In\naddition, other managerial actions should ensure improved\napplication of our vocational rehabilitation and manpower\ntraining services to drug users;\nMaximizing effectiveness of border interdiction forces.\nA supplemental budget for the U.S. Customs Service\nhas been approved which provides for the development\nand procurement of a variety of technical devices\nto detect drugs, for better information on smuggling,\nfor additional detector dogs, and for improving radar\ncoverage of aircraft illegally penetrating the south-\nwestern United States.\nAll of these increases (with the exception of the new community\ntreatment capacity) are aimed at: (1) improving the selectivity\nand targeting in the use of the current budget; or (2) the\nmore effective mobilization, utilizaton, and coordination of\nresources already available in the Federal Government which\ncan be applied to the fight against drug abuse. Also, in\nline with this concept of utilizing existing resources better\nand capitalizing on opportunities to \"leverage\" Federal efforts\nwith those of State, local and foreign governments, the budget\nprovides for:\nContinued material and technical support for other\nnations involved in the fight against drug trafficking\nand for the training for foreign narcotics agents;\nContinuation of the DEA task force program which\ncapitalizes on joint Federal and local efforts, and\ncontinued training and laboratory support for State\nand local officers; and\n14\nA major multi-year program within the National Institute\non Drug Abuse to evaluate the outcome of various types\nof treatment.\nThe President's budget for FY 1977 requests more than $770 million\nfor an integrated program of prevention and treatment, as detailed\nin the following chart.\nDRUG ABUSE PREVENTION BUDGET\nOBLIGATIONS IN $ MILLION*\nDEMAND REDUCTION\nFY 75\nFY 76\nFY 77\nSAODAP\n13.0\n0.0\n0.0\nHEW\n-ADAMHA (NIDA)\n219.7\n232.0\n248.2\n-Office of Education\n4.0\n2.0\n0.0\n-Social and Rehabilitation Service\n79.0\n88.0\n94.0\n-Office of Human Development\n8.8\n8.8\n9.4\nDefense (Note 2)\n64.5\n58.7\n56.0\nVeterans Administration\n34.8\n36.7\n38.0\nJustice (Note 3)\n25.6\n24.0\n21.9\nAll Other\n8.2\n9.9\n10.5\n457.6\n460.1\n478.0\nSUPPLY REDUCTION\nJustice\n-Drug Enforcement Administration\n135.7\n155.0\n161.1\n-LEAA and other Justice\n38.5\n43.8\n40.7\nTreasury\n-Customs\n38.4\n46.3\n44.3\n-IRS\n13.2\n13.2\n13.2\nState (Note 4)\n32.0\n30.9\n34.0\nOther\n1.9\n2.1\n2.1\n259.7\n291.3\n295.4\n717.3\n751.4\n773.4\n*NOTES\n1. All figures adjusted from the FY 1977 budget documents to reflect supple-\nmental requests and Congressional action, and to eliminate the \"double\ncounting\" of drug abuse education, prevention and research activities by\nthe Department of Justice.\n2. Includes obligations for treatment of alcohol abuse,\n3. Includes only Bureau of Prisons and LEAA; does not include DEA spending on\nprevention and education which is included in the total DEA number below.\n4. Obligations during the July through September 1976 \"transition quarter\" will\nbe approximately one fourth of the annual rate for all of these accounts except\nthe State Department's obligations for international narcotics assistance.\nTQ obligations for this item could reach $15.6 million because of a large\ncarry-over from FY 1976.\n15\nThe Remaining Agenda\nIt should be clear from this discussion that we believe that a\ngreat deal of progress has been made over the past 15 months in\nrevitalizing and refocusing the Federal drug abuse program and\nputting it on a sound basis.\nBut there is more we are trying to do: Federal drug enforcement\nefforts can still be more narrowly focused on high level, inter-\nstate and international traffickers; our narcotics intelligence\nsystem -- despite progress in the past year -- is still weak;\nthe new IRS program aimed at drug traffickers who violate tax\nlaws has yet to prove itself effective; the potential contribution\nof the FBI and the U.S. Customs Service has yet to be fully\nrealized; and we can still do much more to develop a stronger\ninterface between Federal regulatory and compliance officials\nand their local counterparts.\nHowever, these are all problems of intra- or inter- agency management,\nnot of structure or statute. We are convinced that the necessary\norganizational entities and interagency mechanisms are already\nin place to deal with these problems, and we assure you that we\nwill closely monitor progress toward more coordinated, effective\nperformance. We strongly believe that any further organizational\nchanges mandated by law are not only unnecessary, but most likely\n16\nwould be disruptive. This is not the time for further delay\nand introspection concerning organizational structures; it is\ntime to work day-by-day to do the job better.\nWhat we need is for Congress to pass\nthe legislation which the President proposed in his April 27\nSpecial Message on Drug Abuse. This legislation is aimed at\nimproving our ability to put major traffickers in prison and at\nclosing loopholes in the law which allow too many traffickers to\nretain the profits from their evil trade.\nIt has become all too clear that gathering sufficient evidence\nto prosecute a trafficker does not guarantee his or her\nimmobilization. An indicted trafficker may be operating in a\nforeign country, out of reach of effective prosecution and\nsentencing. Even in the United States, indictment and arrest\ndo not guarantee immobilization; these events merely begin a\nlong criminal justice process during most of which the trafficker\nis now free to continue operating. At the end of this process,\nincarceration may be relatively short. This failure to immobilize\ntraffickers against whom a substantial case has been developed is\nvery costly - costly in terms of wasted investigative resources\nand lowered morale, costly in terms of weakening the deterrent\nvalue of the law, and costly in terms of reduced public trust in\nthe criminal justice system.\n17\nNow that Federal law enforcement agencies are demonstrating the\nability to shift their focus to high level violators, we must\nmake the significant changes in the way the criminal justice\nsystem handles major traffickers after arrest to capitalize\non this progress. Accordingly, the President has proposed\nlegislation which will, among other things:\nRequire minimum mandatory prison sentences for persons\nconvicted of high-level trafficking in heroin and\nsimilar narcotic drugs;\nEnable judges to deny bail in the absence of compelling\ncircumstances for certain categories of notorious\ndefendants;\nRaise the value of property used to smuggle drugs\nwhich can be seized by administrative, as opposed to\njudicial, action (from $2,500 to $10,000), and,\nextend this forfeiture provision to include cash or\nother personal property found in the possession of a\nnarcotics violator.\nThese proposals are now before the Senate in the form of S.3411\nand S.3645.* These bills should receive bi-partisan support and\nswift Congressional passage. Anything this subcommittee can\ndo to ensure such prompt passage will represent a major contribution\nto the national anti-narcotic effort.\nThank you for this opportunity to present our views on this vital\nissue. We hope that these remarks are helpful.\n*\nIn addition, we urge prompt passage of S.1266, the implementing\nlegislation for the 1971 Convention on Psychotropic Substances,\nwhich the President also called for in his Special Message."
}