Presented is the seventh annual report of the President's Committee on Mental Retardation (PCMR). Stressed are the members' beliefs in the capability of continuing development by mentally retarded people, in early detection and correction of handicaps, and in prevention through prenatal and neonatal biomedical intervention. Emphasized is the necessity for client-centered programs, with evaluation based on the amount of client improvement as a result of service. Described in the first section of the report are steps toward growing functional independence in educational, employment, and living situations by individual children and adults due to goal-oriented, personalized programs at such agencies as a children's center, a state school, a hospital for the multiply handicapped, a sheltered workshop, and a group home. The second section contains material related to prevention of mental retardation and early intervention programs, including discussions of prenatal research into the causes of handicapping conditions, methods of transporting high-risk infants, early childhood programs, and treatment to prevent long-term institutionalization. Covered in the third section are PCMR activities during 1973 with regard to areas such as legal rights, early childhood intervention, preparation for community living, housing and public information. The report includes photographs and the transcript of a group discussion by eight mentally retarded adolescents. (LH)