POLICY-ORIENTED EFFORTS OF THE CORPORATION DURING THE YEAR FOCUSED ON SUCH AREAS AS UNITED STATES-SOVIET RELATIONS, THE ENVIRONMENT, MEDICAL MALPRACTICE, ECONOMICS, COMMUNICATIONS, HOUSING ASSISTANCE, HEALTH CARE FOR THE POOR, NUCLEAR POWER, FERTILITY RATES AND BUSINESS CYCLES, COMPUTERS, MILITARY SYSTEM, RELIABILITY WARRANTIES, NATIONAL HEALTH INSURANCE, DENTAL CARE, PHYSICIAN TRAINING AND PERFORMANCE, INTERNATIONAL TERRORISM TRENDS, AND PRIVATE POLICE. IN THE SECTION ON INTERNATIONAL TERRORISM, IT IS ESTIMATED THAT THERE WERE 1,019 INCIDENTS FROM 1968 TO 1977 IN WHICH 1,017 PERSONS WERE KILLED AND 2,509 PERSONS WERE INJURED. EXCEPT FOR TERRORIST ACTIVITIES INVOLVING AIRPORTS AND AIRCRAFT, IT IS APPARENT THAT TERRORISTS GENERALLY AVOID INDISCRIMINATE ATTACKS THAT CAUSE WIDESPREAD CASUALTIES. WITH NUCLEAR WEAPONS, TERRORISTS POTENTIALLY COULD CREATE AN UNPRECEDENTED MASS HOSTAGE SITUATION, ALTHOUGH FOR SLAUGHTER THEY HAVE LITTLE NEED FOR EXOTIC OR SOPHISTICATED WEAPONS. BOMBINGS ARE THE PRINCIPAL FORM OF TERRORIST ACTIVITY. AN IMMEDIATE EFFECT OF THE GROWING THREAT POSED BY TERRORISM IS THE DIVERSION OF RESOURCES TO INTERNAL SECURITY FUNCTIONS. IN THE SECTION ON PRIVATE POLICE, IT IS ESTIMATED THAT OVER 1.1 MILLION PERSONS IN THE UNITED STATES IN 1972 WERE CRIME-RELATED SECURITY WORKERS AND THAT 429,000 WERE PRIVATELY EMPLOYED. ANOTHER 113,000 WERE GOVERNMENT-EMPLOYED GUARDS. PRIVATE POLICE TEND TO BE OLDER, LESS EDUCATED, AND MORE TRANSIENT THAN PUBLIC POLICE. THERE ARE PROBLEMS IN THE ABUSE OF AUTHORITY BY PRIVATE POLICE SUCH AS FALSE ARREST AND IMPRISONMENT, IMPROPER SEARCH AND INTERROGATION, IMPERSONATION OF PUBLIC OFFICERS, TRESPASS, ILLEGAL BUGGING AND WIRETAPPING, BREAKING AND ENTERING, GAINING ENTRY BY DECEPTION, FALSE REPORTING, AND IMPROPER SURVEILLANCE. RESEARCH TOPICS, REPORTS, AND BOOKS OF THE CORPORATION ARE NOTED, AND THE CORPORATE ADMINISTRATION AND THE RAND GRADUATE INSTITUTE ARE DESCRIBED. CORPORATION PUBLICATIONS AND INDEXES AND BIBLIOGRAPHIES MAINTAINED AS PART OF CORPORATION ACTIVITIES ARE LISTED. (DEP)