THIS REPORT TO CONGRESS DISCUSSES THE HISTORY, FINANCIAL POLICY, VOLUNTEER PROGRAMS, AND RATIONALE OF THE PEACE CORPS, WITH EMPHASIS ON PLANS TO IMPROVE TRAINING AND EXPAND ITS PROGRAM. PEACE CORPS TEACHING, COMMUNITY DEVELOPMENT, AGRICULTURAL DEVELOPMENT, AND HEALTH EDUCATION IN VARIOUS DEVELOPING COUNTRIES ARE REVIEWED AND EVALUATED. A PROPOSAL (INCLUDING BUDGET, RECRUITMENT AND PERSONNEL POLICY, AND TRAINING CURRICULUM) IS SET FORTH FOR A PARTNERSHIP EXCHANGE, AND AN EXCHANGE PEACE CORPS, IN WHICH FOREIGN VOLUNTEERS WOULD CONTRIBUTE TO THE SOCIAL AND EDUCATIONAL DEVELOPMENT OF HOST COMMUNITIES BY TEACHING NATIVE LANGUAGES AND CULTURES AND ASSISTING "VISTA" VOLUNTEERS. THE 1965 AND 1966 PEACE CORPS BUDGETS, AND THE PROPOSED 1967 BUDGET OF $112,150,000 FOR BASIC PEACE CORPS WORK (TITLE I) AND FOR THE PROPOSED EXCHANGE AND VOLUNTEER PROGRAMS (TITLES II AND III), INCLUDE VOLUNTEER AND PROJECT COSTS (PRETRAINING, TRAINING, OVERSEAS COSTS, ALLOWANCES, AND RESEARCH) AND ADMINISTRATIVE EXPENSES (PERSONNEL, MAINTENANCE, SUPPLIES AND EQUIPMENT, TESTING, AND TRAVEL AND TRANSPORTATION). THE DOCUMENT INCLUDES STATISTICAL PROGRAM SUMMARIES AND VOLUNTEER AND TRAINEE DATA. (LY)