ably New York and California, have done excellent work in these fields, but in most States only the very beginnings of the attack that will be necessary have been made.

President Nixon emphasized Federal-State cooperation in his message to Congress of July 14, 1969, on control of narcotics and dangerous drugs, again at the Governors' conference on drugs at the White House held in December 1969, and again in his message to the Congress of June 17, 1971.

ACTION WITHIN THE PRIVATE SECTOR

The President has stressed that the private sector must provide. community leadership in organizing drug abuse education and other action programs. Religious organizations and community and civic groups such as Rotary, Kiwanis, Chamber of Commerce, and Jaycees are best equipped to get directly into the home where they can assist parents in handling the problem of drug abuse with intelligence and credibility. Effects of the President's program to get private persons and groups involved in the attack on the drug problem are being seen and felt. I personally experienced it several times recently in meetings with community groups.

TREASURY'S ROLE IN THE PRESIDENT'S ANTIHEROIN ACTION PROGRAM

On the Federal level, several departments of government have made excellent strides in narcotics enforcement. I would like to highlight to you Treasury's part in the President's program.

Treasury is playing a major role in the President's antiheroin action program. The President appointed Secretary Connally to the Cabinet Committee for International Narcotic Control, with its broad mandate for action.

In the enforcement area, Treasury's Bureau of Customs, the Nation's first line of defense against heroin smuggling, has achieved spectacular success. The Internal Revenue Service is embarked on a major Presidential program designed to take the profit out of dealings in narcotics and thus further disrupt the traffic.

BUREAU OF CUSTOMS

In his September 16, 1968, Anaheim, Calif., speech the President stated:

Let us recognize that the frontiers of the United States are the primary responsibility of the United States Bureau of Customs. I recommend that we triple the number of customs agents in this country from 331 to 1,000.

The President followed through on that pledge and more. In his July 14, 1969, message to the Congress on the control of narcotics and dangerous drugs, he stated:

The Department of the Treasury, through the Bureau of Customs, is charged with enforcing the nation's smuggling laws. I have directed the Secretary of Treasury to initiate a major new effort to guard the nation's borders and ports against the growing volume of narcotics from abroad. There is a recognized need for more men and facilities in the Bureau of Customs to carry out this directive.

This directive was backed up with a substantial antinarcotic supplemental budget request. The Congress responded with full bipartisan support in December of 1969 by passing an appropriation for $8.75 million for 915 additional men and for equipment for Customs.

The hiring of these people, begun in January 1970, and completed in June of that year, has produced remarkable results.

CUSTOMS SEIZURES

In a 2-year period the quantities and the number of narcotic and drug seizures by customs has more than doubled. Most dramatic is the increase in seizures of hard drugs which in fiscal year 1971 totaled over 1,200 pounds, far in excess of the amount seized in the preceding 7-year period.

Customs seizures of marihuana increased substantially and seizures of hashish in fiscal year 1971 totaled more than 3,000 pounds, nearly twice the amount seized the preceding year.

Over 6 million 5-grain units of dangerous drugs such as amphetamines and barbiturates were seized during fiscal year 1971. This is about one-half the number of units seized last fiscal year, although the number of seizures increased to 1,553 from 1,080. A chart setting forth customs drug seizure for the past 3 fiscal years is attached. (Attachment 1, see p. 1471.)

The new personnel hired by customs in the last half of fiscal year 1970 completed their training in the first part of fiscal year 1971. The effects of these additional customs employees began to appear in the second quarter of fiscal year 1971. The effect is most dramatically evident in the statistics for customs' seizures during the first three quarters of this calendar year.

Preliminary figures for heroin seized in the first 9 months of 1971 show more than 1,000 pounds compared to 26 pounds seized in the comparable period in calendar 1970, an increase of almost 4,000 percent. During the last year seizures of pure heroin by customs have included:

Ninety-eight pounds (October 1970-Miami); 210 pounds (December 1970-Miami); 58 pounds (January 1971-San Juan, Puerto Rico); 98 pounds (April 1971-Newark); 155 pounds (May 1971— Miami); 246 pounds (May 1971-San Juan); 156 pounds (July 1971-New York) 24 pounds (August 1971-Laredo); 186 pounds (September 1971-New York), and 69 pounds (September 1971Miami).

We in Treasury feel that these seizures directly support the education and rehabilitation work that will be coordinated by the Special Action Office.

We feel that these huge seizures of heroin in addition to causing appreciable financial losses to the traffickers who owned the seized contraband, has had some effect on the supply. Obviously, it is impossible to obtain completely reliable statistics on any part of this illegal traffic. However, there are some indications that the supply has been affected.

The men and women of the Bureau of Customs, under the dynamic leadership of Commissioner Myles J. Ambrose, deserve enormous it for these outstanding accomplishments.

These results took dedication, imagination, and total commitment of forces. Let me mention some of the things customs has done with the resources provided by Congress for this drive:

In 6 months after the first supplemental appropriation became available customs added 915 trainned personnel to its staff. These included an increment of inspectors who were able for the first time to give priority attention to checking for narcotics enforcement purposes persons, vehicles, cargo, and mail entering the country. A substantial addition to our force of special agents enabled us to run down intelligence leads, investigate violations of the smuggling laws and gather evidence for the convictions of those apprehended.

CADPIN, from the initial letters of Customs Automated Data Processing of Intelligence, has been installed across the country. One hundred and sixty terminals, located at every important port of entry along the Mexican-United States border, at major international airports, and at various intelligence centers now have access to Cadpin's huge data bank. Merely by punching the keys of this terminal, the inspector on duty at a border crossing or an airport can obtain an almost instantaneous reply if a car or person is suspected of smuggling, the car is stolen, or the person is the subject of an outstanding

warrant.

Customs' communications system has been expanded and modernized, with better radios, repeater stations, and sector communications centers. Physical equipment, particularly cars, boats, and planes, both fixed-wing and helicopters, have been increased, giving customs agents the tools with which to deal rapidly and responsively with smugglers and their syndicates.

Additional customs stations have been opened. Two of these are in the remote Big Bend area of Texas, a favorite section of the border for smugglers.

New laboratories, to provide rapid identification of narcotic and dangerous substances, now speed the judicial processing of violators. The use of dogs specially trained to locate marihuana in cars or in mail packages entering the country has been greatly increased, and they are now making substantial contributions in intercepting that substance as it enters the country.

Early this spring, U.S. Customs instituted a 100 percent examination of all APO mail, parcel post, and household effects of military personnel from South Vietnam and Thailand. A joint Customs-military group is in place in Vietnam and is examining all personnel being rotated back to the United States.

A joint Customs-DOD program for examining all APO mail, parcel post, and household effects shipped from South Vietnam is being developed. We are working toward extending it to the entire Far East.

EXPANDED CUSTOMS PROGRAM-1971

The President, in his program announced on June 17, 1971, recognized these accomplishments of Customs and proposed a budget amendment of $18 million to maximize Customs' demonstrated capabilities in interdicting the flow of drugs into the United States. This amendment funded major additions to equipment and 1,000 additional personnel.

The Congress, with bipartisan support, authorized $15 million and the Appropriations Subcommittees stated they would entertain a supplemental request after use of the $15 million. The Congress acted swiftly, passing the appropriation bill on June 30.

The effects of these additional resources will be felt from the New York docks to the Florida airports, from the marinas of southern California to sod airfields in the State of Washington, and along the lengths of the Mexican and Canadian borders. They will yield better enforcement at border crossings without increased delays.

The additional funds also provide for major equipment additions, principally aircraft and boats, with appropriate detection systems for both new craft and those in current inventory. The current intelligence indications of extensive smuggling by unscheduled planes and boats create this substantial need for detection, communication, and interception resource. These will have particular impact along the Mexican border and against small craft making end runs into southern California, Florida, and Texas.

A substantial amount of the equipment to be acquired from this increase in the fiscal year 1972 appropriation has already been delivered. It is being adapted for operations at this time.

Preliminary experimentation has indicated that it will be of substantial value. In fact some minor cases have already been made. I wish I could go into details, because the methods used are fascinating. But a large part of their success will depend on keeping the smugglers from knowing how the equipment will function.

CUSTOMS-TO-CUSTOMS COOPERATION

As one part of the anti-drug-smuggling program, designed to disrupt the traffic in drugs between countries, Treasury early in this administration established the policy of fostering and strengthening cooperation between and among the customs services of the various countries. The Bureau of Customs was directed to put the policy into effect.

The first Customs-to-Customs contacts, and the ones that have resulted in the most cooperation, have been with our neighbors to the north and south. In discussions with the Governments of Mexico and Canada we have improved cooperation in the attack on the drug traffic through Customs-to-Customs cooperation.

Applying the policy of increased Customs-to-Customs cooperation to a wider area, the Treasury Department obtained authorization and appropriations for U.S. Customs to become a full member of the Customs Cooperation Council. This is an organization of the Customs Services of more than 60 nations. Its purpose is to foster close working relationships between and among these services.

At its annual meeting in Vienna in June of this year this Council adopted a resolution calling for its member countries to exchange information on illicit traffic in narcotic drugs and psychotropic substances. A copy of that resolution is attached (attachment 2, see p. 1471). Previously, the customs services of many countries had paid little attention to the drug traffic.

The Bureau of Customs has an ongoing program, sponsored through AID, with the Vietnamese customs service. This has been helpful to the Government of Vietnam in its efforts to stem smuggling of heroin into the country as well as to combat black markeing. The Bureau is also preparing plans for technical asistance to the customs services of other countries in Southeast Asia. Specific proposals are being submitted to the Governments of Thailand and Laos to improve the capabilities of indigenous customs antismuggling operations along the borders of those countries.

As part of this ongoing program of full cooperation among the customs services, the Commissioner of Customs recently made an on-spotsurvey and talked with his counterparts in Yugoslavia, Bulgaria, Czechoslovakia, and Hungary. In these contacts, the resolution adopted at Vienna for the exchange of information on the drug traffic was the stepping stone for talks on increased action against drug traffic by the customs services of each of these countries against the flow of opium and morphine base from Turkey to Western Europe. Recently, within the last few weeks, customs representatives from Eastern Europe and the U.S.S.R. met to discuss problems of transit trafficking in narcotics in that area.

PROGRAM FOR TAX INVESTIGATIONS OF MAJOR NARCOTICS TRAFFICKERS

Included in the June 17, 1971, Presidential message, which announced the administration's expanded effort to combat the menace of drug abuse, is a high priority program to conduct systematic tax investigations of middle- and upper-echelon narcotics traffickers, smugglers and financiers. These are the people who are generally insulated from the daily operations of the drug traffic through a chain of intermediaries. This program will mount a nationally coordinated effort to disrupt the narcotics distribution system by intensive tax investigations of these key figures. By utilizing the civil and criminal tax laws, our objective is to prosecute violators and to drastically reduce the profits of this criminal activity by attacking the illegal revenues of the narcotics trade.

Reflecting the high priority given this program by the President, Congress has provided financial support for the program amounting to $7.5 million in fiscal 1972 and authorization for 541 additional positions-200 special agents, 200 revenue agents, and 141 support personnel.

Certain major features of this program should be noted:

(1) Treasury will not only coordinate its efforts with all other interested Federal agencies, but will actively seek the maximum cooperation of State and local enforcement agencies as well. This is a vital feature of this program;

(2) With the manpower provided, our goal is to have at least 400 full-scale ongoing IRS investigations;

(3) In line with the high priority given this program by the President, the Internal Revenue Service has already assigned more than 100 experienced special agents and more than 100 experienced revenue agents, full time to this program. Additional experienced agents are presently being phased into the program.