Reports of job-hopping, opportunism, grantsmanship, and wheeling-dealing, based on the availability of federal research funds, by university faculty has created much concern in governmental and educational circles about the ethical problems these activities pose for the academic profession. In 1963, the Office of Science and Technology(OST) and the American Council on Education (ACE) developed a statement on the prevention of conflicts of interest between the university and the government, which was issued jointly to the academic community by the ACE, and the American Association of University Professors in 1964. The following year ACE's president requested a statement of institutional policies and procedures on conflict of interest from the 100 universities most heavily involved in government-supported research. Of the 83 responses received, 49 institutions had satisfactory statements on policies and procedures, 9 were working on satisfactory statements, 9 submitted vague statements, and 16 had unsatisfactory policies and/or procedures. The ACE's close collaboration with the Federal Council for Science and Technology (FCST) resulted in the development of a formal government policy which was later issued by the FCST. The document contains a list of 10 other conflict of interest problems that have been created by the complex relationships between the government and the academic community, and a discussion on the value, functions, and limitations of a code of ethics. (WM)