Testimony by Peter Bourne, Special Adviser to the President for Health, reviews the drug policies that have been effective in reducing the supply and consumption of drugs. Cooperation with the governments of other countries to eradicate drug-based crops and to counter smuggling operations are assessed as effective. When queried about the value of Federal investments in drug abuse education, prevention, and treatment, Bourne notes the difficulty of assessing the impact of such programs. He emphasizes the importance of selectively funneling funding to those programs with proven success based on credible evaluations. Testimony by the Administrator of the Alcohol, Drug Abuse, and Mental Health Administration, which administers funding for prevention and treatment programs, responds to recent publicity about the wastefulness and bias in the administration of drug prevention and treatment grant money. Representatives of various prevention and treatment programs that have received Federal funding document the effectiveness of these programs in impacting the demand for drugs.