The main objective of this program is to provide detailed information on methods of minimizing soot formation during synthetic liquid fuel combustion under conditions which minimize the formation of nitric oxides. The program comprises two main tasks, Fuel Screening Studies, and Flame Studies. The purpose of the first task is to investigate the impact of fuel properties on particulate production, to establish the importance of droplet size and examine atomizer effects, and to develop techniques for surrogate fuels production. In the second task, fundamental details of soot formation from synfuel droplet combustion will be investigated in variable slip velocity configurations. This report describes technical progress during the second three-month period of program effort (January-March 1981). During this period attention has continued to be focussed on the design, construction and commissioning of experimental systems. The Task 1 tunnel furnace modification was completed and made operational, and some preliminary fuel screening studies were carried out. Similarly, construction of the controlled flow droplet reactor was completed and efforts directed towards the design and testing of diagnostic systems. Details of this work are discussed.