The NBS-LASL racetrack microtron (RTM) is a joint research project of the National Bureau of Standards (NBS) and LASL to develop high-energy, highcurrent, continuous-beam electron accelerators with room-temperature (that is, not cryogenic or super-conducting) rv accelerating structures. Conceptual design of their subsystems was completed during this period. A great deal of progress was made on the free-electron laser project in the modification of the electron linac, wiggler design, and alignment techniques. This report concentrates on theoretical progress made with the two and one-half dimensioned, fully electromagnetic, relativistic particle-incell plasma-simulation code CCUBE. Waves propagating obliquely to the electron beam are shown to be always unstable with appreciable growth rates, so that mode competition must be a design consideration. Some of these waves can be absolutely unstable and disruptive,, but we show that this can be avoided by careful design. Heavy ion fusion accelerator development considered how to apply the RFQ accelerator to this application. Calculational methods have been developed to predict the current-carrying capacity of linear accelerators, including the RFQ, and we have learned that the RFQ can carry more current than conventional linacs. We also participated in a number of national meetings and workshops on heavy ion fusion. The Fusion Material Irradiation Test (FMIT) project being conducted jointly with the Hanford Engineering Development Laboratory (HEDL), stayed on its ambitious schedule. The prototype building moved toward completion, and testing of the injector system resumed. The RFQ proof-of-principle test showed the feasibility of using this device for FMIT. A major contract for the rf power systems was placed, and the control-system computers were also procured. Preliminary design activities for all subsystems made substantial progress. This progress report concludes with a discussion of H~ ion-source research status and construction activities on a test accelerator to investigate the acceleration of high-quality H~ beams. Important theoretical contributions to the understanding of how beams must be matched in detail to the accelerator focusing systems, work on three-dimensional space-charge simulations, and a theory for the emittance growth caused by mismatch are outlined. PROTON STORAGE RING I. ENGINEERING AND CONSTRUCTION A_. Architect-Engineer Negotiations The Architect-Engineer (AE) selected for the Proton Storage Ring (PSR) is Randy Holt and Associates of Albuquerque, New Mexico. The project is scheduled to be completed in two phases. Phase I will require completion of the staging building,to enable an early start on equipment development. Phase II will include the remainder of the facility. The schedule for Phase I is as follows: