This report responds to a Congressionally directed action contained in the Intelligence Authorization Act for Fiscal Year 1998. Referencing section 109 (as amended in 1996) of the National Security Act of 1947, the Act directs the President to submit an unclassified report ''on the requirements of the United States for intelligence and the activities of the Intelligence Community.'' In keeping with this requirement, this report identifies areas where intelligence is required to meet the national security interests of the United States, and reflects the priorities established by the Administration for implementation by the Director of Central Intelligence for FY 1997. The report includes significant accomplishments as well as initiatives that are being undertaken to strengthen the Community's performance. A classified annex also will be provided to the Congress to supplement information contained in this unclassified report.