Literacy being a major concern at state level preconferences, a theme conference was held to develop recommendations as to how libraries, in cooperation with other concerned agencies, can work toward solving the continuing problems of illiteracy in the U.S. Approximately 200 participants representing the library and educational communities, the government, business, and the private sector, were divided into eight discussion groups and generated 16 recommendations. This report includes a brief review of the background, the six basic tenets which provided the conceptual framework for consideration of literacy problems in relation to libraries, and a summary of the recommendations--nine for the federal level, two each for the private sector and the state level, and three for the local level. (SW)