The first of two papers that comprise this document introduces Australia's response to 1990 as the United Nations (UN) International Literacy Year (ILY). The second paper sets policy directions for Australia's Literacy Year program. The first paper contains the six UN objectives for the year (to increase government action to combat illiteracy, public awareness of illiteracy, popular participation to combat illiteracy, cooperation and solidarity among member states and within the UN in the struggle against illiteracy, and to use the year for launching a plan of action for the eradication of illiteracy by the year 2000); a section on literacy in Australia; an outline of the Australian structures implementing literacy efforts; suggestions for literacy programming; and appendices that describe literacy, give reasons adults have literacy difficulties, and list the members of Australian groups guiding ILY activities. The second paper lists the aims of the National Consultative Council for International Literacy Year (to guide Australia's activities, formulate policy proposals, and promote literacy activities); states the UN objectives for the year; gives background information on illiteracy in Australia, including literacy rate, reasons adults have literacy problems, childhood literacy development, and adult learning experiences; and sets goals for the ILY program. (Among the goals are recognizing the value of reading and writing, expanding opportunities for adult learning, improving the quality of adult programs, promoting plain English, and linking various education sectors. Strategies and priority funding areas are listed and a request to launch ILY on International Literacy Day is reported. (CML)