The 1981 annual report of the International Association for the Exchange of Students for Technical Experience (IAESTE) is presented. IAESTE seeks to provide students at institutions of higher education with technical experience abroad relative to their studies and to promote international understanding among all students. An international report and member country reports are presented. Specific areas of consideration include: the organization of the association, principles of student exchange, administration of the exchange, exchange with nonmember countries, training period and long-term exchanges, sex and nationalities of students participating in 1979-81, field of study, publicity regarding IAESTE in various member countries, and participating industrial organizations and educational institutions. Reports from the following member countries are presented: Argentina, Australia, Austria, Belgium, Brazil, Canada, Colombia, Cyprus, Czechoslovakia, Denmark, Egypt, Finland, France, West Germany, Ghana, Greece, Guyana, Iceland, India, Iraq, Ireland, Israel, Italy, Japan, Jordan, Korea, Lebanon, Libya, Luxembourg, Netherlands, Nigeria, Norway, Philippines, Poland, Portugal, South Africa, Spain, Sudan, Sweden, Switzerland, Syria, Thailand, Tunisia, Turkey, United Kingdom, United States, and Yugoslavia. Appendices include IAESTE statutes and a list of National Secretaries. (SW)