IN 1977 OVER 80 PERCENT OF THE HEROIN AND MOST OF THE MARIHUANA USED IN THE UNITED STATES CAME FROM THE REPUBLIC OF MEXICO, ENTERING OVER THE UNITED STATES-MEXICAN BORDER. THIS HAS RESULTED IN A MAJOR ORGANIZED CRIME PROBLEM IN CALIFORNIA, ARIZONA, NEW MEXICO, AND TEXAS. THIS STUDY FOCUSES ON THE ILLEGAL SMUGGLING OF DRUGS THROUGH NEW MEXICO, PATTERNS OF DRUG ABUSE IN THE STATE, SOCIAL COSTS OF SUCH ABUSE, AND PROBLEMS DRUG ABUSE AND DRUG TRAFFIC ARE CREATING FOR THE CRIMINAL JUSTICE SYSTEM AND FOR SCHOOLS AND SOCIAL AGENCIES. RESOURCES FOR FIGHTING BOTH THE TRAFFIC AND THE ABUSE ARE SURVEYED. EXTENSIVE TABLES PRESENT FACTS AND FIGURES WHILE MAPS SHOW THE MAJOR OPIUM AND MARIHUANA GROWING AREAS IN MEXICO AND THE SMUGGLING ROUTES INTO THE STATE OF NEW MEXICO. SINCE MANY OF THE AIRCRAFT LANDING SITES ARE ON INDIAN RESERVATIONS, A MAJOR RECOMMENDATION IS GREATER COOPERATION WITH TRIBAL LEADERS IN DRUG LAW ENFORCEMENT. THE CHANGING NATURE OF DRUG TRAFFICKERS IS NOTED; THEY ARE NO LONGER STEREOTYPICAL HOODLUMS, BUT MAY BE YOUNG COLLEGE-EDUCATED PERSONS WITH THE APPEARANCE OF RESPECTABILITY. THE RELATIONSHIP OF DRUG TRAFFIC TO ORGANIZED CRIME HAS BECOME MORE VARIED AND LESS TIED TO THE MAFIA. WHILE IT IS NOT A CONTROLLED SUBSTANCE, THE COSTS TO NEW MEXICO OF ALCOHOL ABUSE ALSO ARE CONSIDERED. THE VARIOUS RECOMMENDATIONS ARE SCATTERED THROUGHOUT THE REPORT, THEN SUMMARIZED IN A CONCLUDING CHAPTER. AN APPENDIX TO CHAPTER 5 DETAILS A PROPOSAL FOR A STATEWIDE DRUG ENFORCEMENT COORDINATING COUNCIL AND A STATEWIDE DRUG INTELLIGENCE INFORMATION NETWORK. APPENDIXES LIST WITNESSES APPEARING AT THE HEARINGS AND SCHOOLS ANSWERING THE QUESTIONNAIRE. REFERENCES ARE PROVIDED IN EACH CHAPTER. (GLR)