The report first presents an overview of the Federal drug strategy, which includes the Clinton administration's principles for responding to the drug problem. The strategy provides a concise, action-oriented approach to drug prevention and drug treatment, law enforcement, local program implementation, and international interdiction. The Action Plans are grounded in four basic convictions. First, young people need positive alternatives to drug use. Second, chronic, hardcore drug use, which fuels drug-related crime, must be reduced through drug treatment efforts at every possible juncture, especially in coordination with the criminal justice system. Third, the flow of drugs into the United States can be disrupted most effectively through innovative international programs and strong interdiction capabilities in both the source countries and the transit zones. Fourth, communities must be empowered in their responses to drug use and drug trafficking with programs that are less bureaucratic and provide maximum flexibility for efficiently delivering services. This report also outlines the current drug situation, providing the latest statistics on drug use, the consequences of such use, and illicit drug availability. Then it summarizes the strategy's four Action Plans, which contain the Clinton administration's vision of how the Nation can achieve its goals in the areas of demand reduction, domestic law enforcement, and international affairs. Finally, the report presents Federal drug control resource priorities for fiscal year 1996. 16 figures and 3 tables