The second phase of a two-phase study of the condition and needs of the live professional theatre in America since the mid-1960's called for recommendations by an advisory group appointed by the National Endowment for the Arts. These recommendations, based on the data collected during the first phase of the study and on personal experience, as theatre professionals, of the advisory group members, concerned the following areas: professional theatre institutions, professional theatre personnel, increased accessibility, taxation, federal leadership, and further studies. Essentially, the federal government can and should take a strong lead in helping change the public perception that theatre can and should pay its own way. It should take a lead through corrective federal legislation to provide direct and indirect increased public support to professional theatre, and it should encourage appropriate legislative action by nonfederal centers of government. Also, the interrelationships among the not-for-profit and the for-profit theatres should be encouraged for the benefit of theatre as a whole, while the integrity of the motivation of each section should be recognized. Finally, the importance to American society of the multifaceted artistic and economic roles of theatre should be realized and become the basis of further studies. (HOD)