The report calls the year 1977 a watershed in police history due to the breakdown of part of the existing negotiating machinery about pay and conditions in the police service and the setting up by the Government of the Edmund-Davies Committee of Inquiry. The details of police establishments in Scotland contained in the report show that manpower is at too low a level; e.g., there were 140 fewer recruits than in 1976 and 33 more resigned. The success of the Dumfries, Galloway, and Northern Forces in reaching their authorized establishment is examined. These forces emphasize the importance of the beat constable who carries out a broad range of duties. Issues pertaining to crime such as crime trends, detection rates, and alcohol/drugs and crime are discussed, including the large number of young people involved in urban area crimes and the existence of a hard core group which fails to respond to present methods of treatment. Road traffic and communications are examined; the number of road fatalities increased as well as the child cyclist casualty rate. Awards are listed, and statistical data are provided. (Author abstract modified)