Title II of the Elementary and Secondary Education Act (ESEA) provides direct federal assistance for the acquisition of school library resources, textbooks, and other instructional materials for the use of children and teachers in public and private elementary and secondary schools. This report describes how the 50 states, the District of Columbia, Guam, Puerto Rico, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Department of the Interior (for the children and teachers in schools operated for Indian children) utilized funds for the fiscal year 1967. Data was gathered from annual reports submitted by participating educational systems and analyzed. The financial report shows expenditures in the various categories during the previous fiscal year. The statistical report provides data on personnel and material acquired, program accomplishments and the degree of need for continuing financial support. The narrative report summarizes and evaluates the program, describing achievements made possible through Title II and identifying problems. Reports on special purpose grants projects funded under ESEA Title II are included. The apprendix contains tables of statistical information and the forms used to collect information. [Not available in hard copy due to marginal legibility of original document.] (JY)