The Supplemental we are proposing for FY-1970, to a large degree, is not being justified on a basis of improving activities that have been carried on in the past. Rather we are attempting to outline a new point of departure for this Bureau in its basic mission of controlling the abuse of narcotics and dangerous drugs.

Last year the main objective was to reorganize the Bureau into a structure that could best carry out its functions as we knew them then. During the past year we have been able to analyze more thoroughly the total job that has to be done, and the resulting conclusion has not necessarily been consistent with the activities that this Bureau has been carrying out in the past.

For one thing we do not see the problem as such an unstructured mass as has been portrayed previously. We believe that it can be clearly defined and that our activities can be directed within well defined problem boundaries. We firmly believe that systematic effort will increase our chances of success. For this reason we have directed our attention to defining long-range objectives, shorter range goals and specific targets.

Paramount to the accomplishment of the Bureau's objectives is the identification of the illegal drug systems and the hierarchy comprising them. In the past, the presumption was that the top people in an illegal organization were best reached through members in the sub-organization, but a concerted effort was never made to identify the entire hierarchy of the organization involved.

Under this concept, investigations were conducted more or less as fishing expeditions, during which we would put out our bait and hope that some would take it who could and would lead us to the significant traffickers.

Unfortunately, the underworld is well aware of the past policy of the Federal Government dictated by inadequate resources, which limited the dollar amounts which could be applied to the purchase of evidence. Since a failure to meet the asking price could lead to exposure, this policy caused investigations to be terminated which, with adequate funds assured, would have enabled the Bureau to exploit all undercover possibilities. It is estimated that in FY-1969, at least 60 cases, which were leading to major organizations engaged in drug trafficking, had to be prematurely aborted.

In one instance, an informant expressed confidence that he could bring a trafficker into the open to accept marked money in the amount of $75,000 for five kilograms of unadulterated heroin. Although this trafficker has been a perennial major target of law enforcement agencies for the past 20 years, the unavailability of the $75,000 negated the many and costly investigative hours devoted to this case, and destroyed an unusual opportunity to insure the initiation of a substantive case against this particular trafficker. It must be stressed that these opportunities do not occur every day, and that when they do, the Bureau must be financially prepared to move.

In another investigation, a Special Agent purchased a sample of DMT for $200. The defendant agreed to sell an additional quantity for $4,000 to $5,000, a purchase which would have enabled the agents to locate the clandestine laboratory manufacturing this drug since the defendants would have gone there to replenish their own supply. Here again, funds were not available, and although three de

fendants were arrested, the investigation was curtailed.

An important tool in the enforcement of the drug laws is utilization of the informant. Criminal informants are motivated for self-serving reasons, such as avoidance of prosecution, monetary gain, revenge, etc. However, rigid discipline, in a criminal organization enforced by swift and cruel punishment, is a strong deterrent to potential informants, particularly at the higher levels of criminal groups. Accordingly, incentives must be provided to overcome this barrier.

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First to be considered, is the informant who is facing charges. The best he has been afforded in the past is a suspended or reduced sentence and possibly a small sum of money. not enable him to relocate and legitimately support his family. As a result he being found by the organization and dealt his fate which serves notice to others not to commit the same betrayal.

Above all, funds must be available in sufficient quantity to provide for the relocation and support, for an indefinite period, of the informant and his family during and after his cooperation. The second person to consider is the one who might be vulnerable to an approach for informant services for strictly monetary gain. It may be that there are middle echelon hoodlums who would be receptive to an offer if they knew they could earn more than their criminal pursuits bring them. The Government must be prepared to pay an informant over a long term for valuable intelligence or in a lump sum for an immediate case.

Two

The following example illustrates what can be accomplished if adequate funds are available. informants recently indicated they would assist this Bureau in the initiation of a case against a well-known New York drug trafficker. The informants furnished sufficient information indicating that they could in fact assist us; however, each desired a large fee ($25,000) for his services. Funds were not available thus negating our chances of apprehending the violator, who is the head of a large organization responsible for the importation and distribution of multi-kilograms of heroin.

In conclusion, it is the judgement of the Bureau, that the objective of immobilizing the major conspiracies will be achieved only when sufficient resources permit the utilization of informants who have high stature in an organization, and provide for the purchase of wholesale quantities of illict drugs necessary to apprehend the more important members of the criminal organizations.

Our request for FY-1970 now pending in the Congress includes $1,151,000 for purchase of evidence and payments to informants, an amount which does not represent the implementation of our new concept for dealing with this problem. We are therefore requesting an additional $700,000 which would be used to initiate this program during this fiscal year.