Avian encephalomyelitis (AE) is a virus disease of chickens first observed in 1930 by Jones. Since egg transmission was an indicated source of infection, larger breeding establishments investigated, during the early 1950's, methods of prevention and control. The Animal Inspection and Quarantine Division was first contacted in 1956 regarding a U. S. Veterinary License for avian encephalomyelitis vaccine. The mode of natural transmission and true incidence of the disease had not been determined. Prospective license applicants were discouraged by work required to establish the safety and efficacy of experimental products prior to licensing. Meanwhile the Animal In'spection and Quarantine Division, cognizant of the research efforts and the results, had permitted several interstate shipments of brain-propagated live avian encephalomyelitis vaccine for investigational use. The limited field studies conducted were inconclusive because of failure to provide unvaccinated controls and to check immunity of vaccinates and their progeny by challenge or laboratory procedures. The majority of requests made by individuals who simply wanted to u'se the vaccine and had no desire to conduct a controlled field study were denied. These poultrymen were forced to continue to risk the hazards of AE or find another source of vaccine. Commercial manufacturers of biologicals were not interested in preparing avian encephalomyelitis vaccine. Epizootiological studies established that AE was widespread in the United States and Canada. This work also presented convincing evidence that the progeny of immune flocks did not show as chicks clinical evidence of infection. The demand for AE vaccine increased in 1960. Routine interstate movement of unlicensed vaccine could not be permitted. As a result of a meeting with researchers working on avian encephalomyelitis, it was concluded that live virus vaccine propagated in chicken embryos appeared to offer the greatest advantages. Prospective licensees agreed to withdraw pending license applications for chicken brain-propagated live virus vaccine. Efforts were directed toward stimulating interest by a biologies manufacturer, further evaluating live virus vaccine propagated in chicken embryos, and investigating the incidence of the disease in progeny of resistant flocks. Permits for interstate shipments were granted only for the purpose of evaluating experimental product for licensing. The objectives proposed for field trials included studies on the spread of vaccine virus through the egg and by direct contact to susceptible birds and, if such