THE COMBINATION OF A PRISON POPULATION AT A CRITICAL LEVEL OF 42,000, REDUCTION IN ACTIVITY PROGRAMS FOR PRISONERS OUTSIDE CELLS, AND A PRISON STAFF IN HIGHLY MILITANT MOOD AND TAKING INDUSTRIAL ACTION, LED TO INCREASED TENSION. REDUCTION OF PRESSURE ON THE PRISON SYSTEM WAS STUDIED BY THE GOVERNMENT AND THE LEAGUE, AS WAS SENTENCING POLICY AND THE POSITION OF WOMEN IN THE SYSTEM. THE LEAGUE URGED THE PRISON DEPARTMENT TO END CENSORSHIP OF PRISONERS' CORRESPONDENCE AND TO FIND NEW WAYS OF RESOLVING PROBLEMS WITHIN PRISONS. IT PROTESTED AGAINST THE HOLDING OF VERY SMALL NUMBERS OF WOMEN IN BRIXTON PRISON UNDER MAXIMUM-SECURITY CONDITIONS. WORKING PARTIES OF THE LEAGUE ADDRESSED SUCH ISSUES AS THE TREATMENT OF YOUNG PEOPLE; THE PRISONER AND THE COMMUNITY; THE DANGEROUS OFFENDER; YOUTH CUSTODY AND SUPERVISION; FOREIGN PRISONERS TRANSER TO THEIR HOME COUNTRY; DAY CENTERS; AND MAXIMUM PENALTIES IN SENTENCING. THE REPORT REVIEWS CORRESPONDENCE RECEIVED FROM PRISONERS THROUGHOUT THE YEAR AND OUTLINES THE LEAGUE'S ACTIVITIES--MEETING, CONFERENCES, AND PUBLICATIONS. WORK OF THE LEAGUE'S LOCAL BRANCHES DURING THE YEAR ARE REVIEWED. THE LEAGUE'S BASIC THEME IN ALL ITS ACTIVITIES CONTINUED TO BE THAT PRISON IS THE SEVEREST PENALTY ON THE STATUTE BOOKS AND SHOULD BE USED ONLY WHEN NECESSARY TO PROTECT THE PUBLIC. OFFENDERS FOR WHOM PRISON IS UNAVOIDABLE SHOULD BE TREATED FAIRLY AND BE GIVEN ADEQUATE MEANS OF COMMUNCIATION WITH THE OUTSIDE WORLD. TABULAR DATA ACCOMPANY THE REPORT. (MJW)