THE PLAN WOULD PLACE STRICT LIMITATIONS ON THE USE OF LEAA FUNDS FOR EQUIPMENT AND HARDWARE, BAN THE USE OF FUNDS FOR GENERAL SALARY INCREASES OR CONSTRUCTION, LIMIT THEIR USE FOR ADMINISTRATIVE PURPOSES, PROHIBIT THE FUNDING OF INEFFECTIVE PROGRAMS, AND WOULD CHANNEL MORE LEAA FUNDS TO CRIME-RIDDEN AREAS, PARTICULARLY THE 17 STATES THAT HAVE ABOUT 55 PERCENT OF THE NATION'S SERIOUS CRIME. THE CARTER PLAN WOULD CREATE A NATIONAL INSTITUTE OF JUSTICE WITHIN THE JUSTICE DEPARTMENT WHICH WOULD BE RESPONSIBLE FOR RESEARCHING CRIME PREVENTION AND REDUCTION AND IMPROVING CIVIL PROCEEDING. IN ADDITION, A NEW BUREAU OF JUSTICE STATISTICS WOULD BE CREATED TO COLLECT, ANALYZE, AND DISSEMINATE STATISTICS ON CRIMINAL AND CIVIL JUSTICE MATTERS. A NEW OFFICE OF JUSTICE ASSISTANCE, RESEARCH, AND STATISTICS WOULD DESIGNATE NATIONAL PRIORITY GRANTS TO SUPPORT PROGRAMS PROVEN EFFECTIVE. THE JULY 10, 1978 MESSAGE FROM THE PRESIDENT OUTLINING THE LEAA PLAN AND COVERING LEAA PAPERWORK, FUND-TARGETING, WASTEFUL USE OF FUNDS, LOCAL FUNDING AND COMMUNITY AND NEIGHBORHOOD PARTICIPATION, AS WELL AS THE PROPOSED INSTITUTE OF JUSTICE AND BUREAU OF JUSTICE STANDARDS, IS REPRODUCED. (JAP)