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up from 29,000,000 in 1949 to 33,000,000 in 1950 and in 1951 to 37,000,000.

Mr. COUDERT. In other words, it is the normal increase in the number of beneficiary payments under the normal operation of the social-security law?

Mr. BANNING. That is correct, sir.
Mr. COUDERT. Thank you.
Mr. Gary. We are very much obliged to you, Mr. Banning.
Mr. BANNING. Thank you, Mr. Chairman.

MONDAY, JANUARY 9, 1930.
BUREAU OF NARCOTICS

WITNESSES
G. W. CUNNINGHAM, DEPUTY COMMISSIONER
M. L. HARVEY, ASSISTANT TO THE COMMISSIONER

Mr. Gary. We will now take up the appropriation estimates for the Bureau of Narcotics.

We are very sorry to hear of Mr. Anslinger's illness. I trust that it is not serious and that he will soon recover. The committee has a very high regard for Mr. Anslinger and the work he is doing in the Bureau of Narcotics.

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1, 610, 000

Total appropriation, 1950--

-----Deductions:

1. Investigations of violations of Federal narcotic laws-- $3, 222
2. Control of importation, exportation, and domestic dis-

tribution of narcotics, for medical and scientific

purposes---------------------------------------- 1,318 3. Executive direction --------

----------- 160

4, 700

1, 605, 300

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Subtotal.
Additions:

2. Investigations of violations of Federal narcotic laws
2. Control of importation, exportation, and domestic dis-

tribution of narcotics, for medical and scientific
purposes ---

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Appropriation base for 1951 ----
Estimate of appropriation for fiscal year 1951..

1, 606, 300 1,933, 000

Net increase from base for 1951.

326, 700 1 Does not include anticipated deficiency for 1950 to cover cost of authorized pay increases, nor travel per diem increase.

Comparison of estimate of appropriation for fiscal year 1951 with appropriation

base for 1951

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Mr. Gary. We shall be glad to hear from you, Mr. Cunningham, if you want to make a general statement at this time.

Mr. CUNNINGHAM. Mr. Anslinger expresses his regrets that he could not be here today to present this picture to you, especially in view of the fact that by reason of the changes which took place during the last calendar year he asks for more money.

Mr. Gary. It appears, Mr. Cunningham, that for 1950 you requested $1,560,000, and we appropriated $1,610,000.

Mr. CUNNINGHAM. That is correct, sir. Mr. Gary. We were exceptionally good to you for this year. Mr. CUNNINGHAM. Yes, sir, as usual. Mr. Gary. And you are now asking $1,933,000 for 1951. Mr. CUNNINGHAM. Yes, sir; that is correct. Mr. Gary. What is the reason for that increase? Mr. CUNNINGHAM. Well, Mr. Chairman and gentlemen, the over-all picture with reference to narcotic conditions throughout the country might be considered a little bit worse than it was a year ago.

SITUATION IN NEAR EAST

With reference to the situation in the Near East, the Bureau sent a representative over there in the early part of last year for some 3 or 4 months. He visited Turkey, Iran, Yugoslavia, and Italy, and went into France. Pursuant to an arrangement made by those Governments he endeavored to find out the picture there with reference to production and to tighten up the internal controls in those countries.

As has heretofore been the fact, it seems that Iran can raise enough poppies yearly to produce a sufficient amount of opium for double the medicinal needs of the world.

The Commissioner at the last meeting of the United Nations was able to get an agreement whereby a conference was held at Ankara during the fall of last year which terminated the latter part of November.

EXPORTS OF NARCOTICS FROM NEAR EAST COUNTRIES The opium-producing countries over there were all parties to this conference and an agreement was reached to prorate the export of narcotics from those countries.

Turkey was to get 56 percent, and Iran after considerable battles agreed to 25 percent, and so on down the line. India took some, Yugoslavia took a small amount, and they left 4 percent unallotted. Mr. GARY. How about China ?

Mr. CUNNINGHAM. China is not a party to it. There was 4 percent unallotted.

Now, of course, if those people adhere to that and control those exports it will be a fine thing, but Iran has some 4,000, 5,000, or 6,000 cases of opium now.

As to whether or not more than that 25 percent will be exported is something to be determined in the future.

CHINESE OPIUM

You mentioned China. An application came in for an import permit from a broker in Seattle. Investigation revealed that he was representing a textile manufacturer over in north China. He wanted to sell 10 tons of opium to a New York importer, and they telephoned me about it. We were particularly interested in finding out, if we could, where this opium came from. There has never been any opium imported from China. It is low-grade opium and used mainly for smoking purposes, the Turkish opium being the best opium there is.

Mr. GARY. You mean by that the best for medicinal purposes?

the manufacturers get a better buy for their purpose, and all of those contracts are based on the alkaloidal content of the opium. It was developed by the State Department there were about 100 tons of that opium somewhere in Communist China and we, of course, did not issue any permit. We were particularly interested in finding out whether or not that had been a part of the opium that might have come from the Middle East. Of course, we do not know yet. We may find out. That would only have been of interest in attempting to tighten down the controls with reference to Iran.

We also sent a representative to Peru by agreement with that government, which sent one of their representatives here.

The cocaine situation became very bad, and that has been to a great extent clarified. Mr. Harney has some figures on that, he being in charge of the enforcement angle.

NARCOTIC SITUATION IN MEXICO Mexico has continued to improve its situation, but it still remains, however, a source of a great deal of drugs-opium, heroin, and inarihuana.

We have had two men down there, one of them on one trip, and the Commissioner made one trip. The Mexican Government is doing everything it can. Those fields are in isolated mountain areas and sometimes it is necessary to use low-flying planes to locate them. There continues to be a rather large quantity of drugs which come over the border.

COST OF PURCHASING NARCOTICS During the year down in the Southwest, especially since July 1, quite a few more cases have been developed, running into a rather sizable amount of money. In one month we spent, for instance, about $7,000 in the State of Arizona.

In spending what appears to be a large sum of money it does not necessarily mean that you get an enormous quantity of narcotics as you did 10 or 12 or 15 years ago. When you assume that a little can of heroin, an ounce, would probably be that tall (indicating], and an inch around, brings $250; and that 5 ounces of smoking opium will bring $250, and if maybe they bring through an ounce of cocaine it will probably bring $250 to $275. The legitimate price of morphine, of course, is $10 or $15 an ounce.

There is no heroin lawfully manufactured in the United States today.

THEFTS OF DRUGS The Bureau has been confronted with and is still being confronted with robberies and burglaries; that is, diversions from tax-paid drugs. While these offenses are purely violations of State laws, we have sought to aid the States in every way possible so as to remove those drugs from the illicit traffic. I would say that we have an average of 75 to 100 thefts a month. That includes drug stores, wholesale houses, and doctors' offices, anyone who may have tax-paid drugs.

We have succeeded in removing from the scene several of those burglars during the present year, some of them to do long sentences.

NEW ADDICTS

There has been another disturbing circumstance which the Commissioner mentioned to you last year, and that is the number of new addicts appearing in various parts of the country, young addicts. That is particularly true in three or four places, Chicago, San Francisco, Los Angeles, New Orleans, and New York City. As an instance, last month 20 people went to our office in Chicago seeking some aid to be cured of drug addiction, and 16 of them were minors. For the last 5 or 6 months those minors have been trickling into the Public Health Service hospital at Lexington, and we have been paying particular attention to them.

Mr. Gary. That is, Lexington, Ky.?
Mr. CUNNINGHAM. That is right, sir.

These people are asked questions by our agents down there as well as by the hospital authorities, and it seems that most of them give a history of having started by smoking marihuana. Then after perhaps 2 or 3 months marihuana loses its kick and they next begin on heroin.

A gentleman from the Public Health Service in charge of hospitals called me about 2 months ago. I happen to know him very well. He was down in Lexington while I was at Louisville, and he had a letter from a gentleman who operated a boys' school, a reform school in Illinois, and was very much concerned about the youthful addicts.

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