This annual report updates membership data for the President's Committee on Employment of the Handicapped, recaps the members' creed, and lists appointments to the executive committee. Committee infrastructure and personnel are discussed. The year's activities of the Public Affairs Section included work on: National Employ the Handicapped Week, print media coverage, national contests, 1986 award programs, the speakers' bureau, the "ACTION" campaign, development of work incentives in social security programs, airline access, and cooperation with the National Safety Council Activities of the Office of Plans, Projects and Services. Other services and meetings included implementation of the Job Accommodation Network, the computerized electronic mail service, the Hospitality Industry conference, the Federal Employment conference, the conference on Black Persons with Disabilities, the Parent/Employer conference, and the High School/High Tech career development program. Activities of the Office of Research and Publications included seven new publications, publication of a quarterly magazine, and development of a computerized database. An appendix lists proposed projects for the upcoming year (1987). (PB)