I have submitted a comprehensive statement for the record that I will summarize briefly for you today.

Last month, I appeared before the Subcommittee to testify on U.S. Customs' narcotics interdiction role. I was pleased to report that, despite an ever-increasing workload, our men and women serving on America's frontline registered yet another record year for drug seizures in 2000.

Yet, narcotics were not their only priority. The successes of the past year speak not only to Customs' mission to facilitate trade and defend America from contraband, but to our increasing role in: fighting the spread of internet crime; combating global money laundering; defending U.S. business from copyright infringement and fraud; stopping the smuggling of weapons of mass destruction; and preventing the importation of goods made with child and prison labor;

Mr. Chairman, the list goes on. From a management perspective, we have no greater responsibility to our employees and the public we serve than to plan effectively for the future. That is especially true when our workload is expected to increase so dramatically in the coming years, impacting our national economy and security.

At Customs, we are busy addressing future challenges in a very systematic way, beginning with our people. Staffing, in general, will continue to be a critical issue for our agency. With the help of a leading consultant, we built a resource allocation model to help us project future staffing needs at all our Customs locations. The model was designed as a planning tool for management. It can be programmed to take into account changing scenarios that impact our mission, such as an expanded volume of trade or a shift in threat.

Thanks in large part to the resources provided by the Congress, we are also acquiring the technology needed to supplement the skills of our people. We are currently working towards completion of a five-year counter-drug technology plan.

Under that plan, we have obtained a range of non-intrusive inspection technology for our busy southern tier. The use of these tools has cut down our processing times, and enabled us to seize more illegal drugs.

Earlier this month, Customs inspectors at Otay Mesa, California, found 15,000 pounds of marijuana concealed in a tractor-trailer with the help of one of our new truck x-ray systems. It was believed to be the single largest shipment of narcotics ever seized at a land border crossing.

With funding in our 2001 budget, we were also able to implement a counter-terrorism plan that includes upgrades to northern border infrastructure, such as improved security and lighting; the acquisition of non-intrusive inspection systems; and the posting of additional Customs agents to national anti-terrorism task forces.

The rapid increase in border traffic has major implications for ports of entry all along our northern and southern tiers. At the request of Congress we completed a port infrastructure assessment study to identify our most important challenges. That study, conducted with the GSA and our partner federal inspection service agencies, included a look at health, safety, and operational initiatives to increase the traffic and processing capacity of our ports.

Modernization of our air and marine assets is also essential to keeping up with an ever-flexible smuggling threat. Again, at the request of the Congress, we completed an Air and Marine Interdiction Modernization Plan in 2000. We are very pleased that the President's 2002 budget includes 35 million dollars for Customs' Air and Marine Interdiction Division in support of the Western Hemisphere Drug Elimination Act. We have identified the priority areas to be addressed with this funding, consistent with our modernization plan.

Of all the modernization efforts being undertaken at Customs, perhaps none will benefit the American public in more ways than our new automated system for trade.

Customs' ability to contend with a spiraling workload hinges largely on the development of the Automated Commercial Environment, or ACE. ACE will not only help Customs to move imports across our borders more efficiently; it will enable us to do a better job of protecting America from contraband and other threats.

Last year, we received the first down payment on ACE with the 130 million dollars for new automation provided in our 2001 budget. Part of that funding was designated for the hiring of a prime contractor to help build the new system. With the assistance of this Subcommittee, the General Accounting Office, and the continued hard work of the men and women of Customs' Office of Information Technology, we have completed the source selection process for that prime contractor. Customs will be ready to announce the prime contractor awardee in the very near term. Once brought on board, that prime contractor will begin work immediately on the first series of critical tasks.

I want to thank the Subcommittee once again for its steadfast support of the Customs Service. We ask for your continued support in our fiscal year 2002 budget request.

I would be happy to take your questions now.