This report reviews the ISTC’s objectives and plans, discussed its activities with U.S. and FSU officials, and met with FSU grant recipients and institute directors. The committee concludes that during its first two years the ISTC was successful and effective in meeting its primary objective, which, in turn, has contributed to the larger goal of diminishing the risk of weapons proliferation. Moreover, the opportunities provided to FSU scientists and engineers do indeed offer meaningful nonweapons-related work, which helps address the demoralization that may otherwise contribute to scientists’ being lured into work for unfriendly governments. The committee believes the ISTC has also been successful in addressing its secondary objectives–namely, the solution of national and international technical problems; the support of basic and applied research and technology development for peaceful purposes; and, to a lesser degree, reinforcement of the transition of the FSU to a market-driven economy.