THIS REVIEW WAS CONDUCTED BY THE ADVISORY COUNCIL ON THE PENAL SYSTEM IN ENGLAND. WORK GROUPS MET ON 74 OCCASSIONS TO EXAMINE ISSUES ON SENTENCING AND ASSESSMENT, ISOLATED TREATMENT, SUPERVISED COMMUNITY CARE, AND FEMALE OFFENDER TREATMENT. FOLLOWING AN EXAMINATION OF THE EVOLUTION OF THE PENAL SYSTEM, CONCLUSIONS WERE DRAWN FROM THIS EXPERIENCE AND RESEARCH RESULTS CONCERNING THE EFFECTIVENESS OF VARIOUS WAYS OF DEALING WITH YOUNG ADULT OFFENDERS AND THE SENTENCING STRUCTURE BEST SUITED TO PROTECT THE PUBLIC AND TO REDUCE FUTURE OFFENSES. THE RECOMMENDATIONS ENCOURAGE CHANGES IN EXISTING LAW AND PRACTICE IN THE WIDER SOCIAL CONTEXT WITHIN WHICH A MODERN PENAL SYSTEM HAS TO OPERATE. THE INCREASE IN RECORDED CRIME, THE INCREASING COSTS OF THE PENAL SYSTEM, AND THE TRANSFORMATION OF SOCIAL LIFE AND VALUES ARE CONSIDERED. AT THE TIME OF THIS STUDY, AVAILABLE CUSTODIAL CARE FOR YOUNG ADULT OFFENDERS INCLUDE PRISONS, BORSTALS, AND DETENTION CENTERS. DATA WERE COLLECTED FROM ORGANIZATIONS AND INDIVIDUALS WHO SUBMITTED WRITTEN MATERIALS; INFORMAL DISCUSSIONS WITH OFFICIALS; INDIVIDUAL AND GROUP DISCUSSIONS WITH TRAINEES; SITE VISITS; OVERSEAS VISITS WITH ADMINISTRATORS, FIELD STAFF, AND EDUCATORS; AND A REVIEW OF THE RESEARCH IN THE AREA OF STUDY. THE COUNCIL RECOMMENDED SENTENCES REQUIRING CUSTODY AND CONTROL WITH EMPHASIS ON COMMUNITY SUPERVISION AND NONCUSTODIAL SENTENCES OF SUPERVISION AND CONTROL WHICH PROVIDE THE PROBATION SERVICE WITH MORE STRENGTH AND FLEXIBILITY. FOOTNOTES AND APPENDIXES CONTAINING PROCEDURAL REVIEW, SYSTEM OF TREATMENT, STATISTICS, RESEARCH, PROVISIONS OF CUSTODY AND CONTROL ORDER, APPEALS, AND ALTERNATIVE TRAINING, ARE PROVIDED. (JCP)