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B-173123 1 (1974-07-23)

handle is hein.gao/gaobaaeff0001 and id is 1 raw text is: COM PTROLLER GENERAL 0F THE UNBTED SAE WASH INGTON, D.C. 20548 B-173123 The Honorable Charles B. Rangel House of Representatives ,1', 40 JUTL 2 '37 Dear Mr. Rangel: Your letter of May 9, 1974, requested that we study issues relating to the supply and demand for crude opium and opium derivatives. In discussions with your office, it was agreed that we would provide an initial report on the first three issues in your letter. The effect that Turkey's recent decision to resume the growing of opium will have on future supplies was not addressed in this report. The remaining is- sues will be dealt with in a later report. It was also agreed that, due to the urgency associated with your request, we would not attempt to independently determine the legitimate U.S. demand for crude opium and its derivatives. This report discusses the following issues: --What is the present and 5-year projected, legitimate demand for crude opium and opium derivatives in the United States ? --What is the process by which the Government determines the legitimate demand, and how adequate is the process in terms of accuracy and industry control of input data? --What is the present and 5-year projected supply from present sources? As your office later requested, we have also projected when demand will exceed supply. We found that: --The demand for codeine, which accounts for about 90 percent of the demand for all opium derivatives, is increasing and is expected to increase for the next 5 years. Industry spokes- men project an increase which averages 13 percent per year -with the greatest increase in 1974. The view of the Depart- ment of Health, Education, and Welfare (HEW), presented in September 1973, was that the national need for opium would not decrease. (See pp. 1 to 3,) --The Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 801) provides for annually determining legiti- mate U. S. needs for controlled substances, including opium and its derivatives, We found, however, that: T 1, J~nwnIw~lU~~iihihuwuuii 1. HEW has yet to issue an annual report containing the results of studies done to determine the legitimate medical and R ELEA SED LM090265 inllllllllulp'l'

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