This report reviews the establishment and early performance of the comprehensive manpower system established by the Comprehensive Employment and Training Act (CETA). The report is divided into two major sections. Part 1 examines the background and first year results of the CETA program. The legislative and programmatic antecedents to CETA are sketched for the years 1961 to 1973. Program results are then identified from initial implementation and the first year of operation under the following headings: implementation, planning councils, service deliverers, distribution of resources among program activities, participant characteristics, and outcomes. Part 2 discusses major public policy issues revealed from experience to date and presents those issues in four sections. Section 1 on the focus of employment and training programs discusses the population to be served, skill shortages, integration of manpower development and economic development, CETA and categorical programs, public service employment, and CETA and national economic policy. Section 2 discusses CETA prime sponsor relationship to the state employment security agencies, the relationship of vocational education and rehabilitation to CETA, strengthening the link between education and work, and defense-oriented manpower services. Section 3 discusses the integration of manpower development programs with income maintenance programs. Section 4 on the development of CETA discusses the scope of operations, mix of services, local-state-federal roles, and involvement of business and labor in CETA programs. (EM)