The merger of the Commission on Preservation and Access and the Council on Library Resources (CLR) became official on May 30, 1997 when the Board approved the new enterprise, the Council on Library and Information Resources (CLIR). The CLIR statement of mission calls on the organization to identify the critical issues that affect the welfare and prospects of libraries and archives and the constituencies they serve, to convene individuals and organizations in the best position to engage these issues and respond the them, and to encourage institutions to work collaboratively to achieve and manage change. CLIR pursues its mission out of the conviction that information is a public good and of great social, intellectual, and cultural utility. The report lists funders and sponsors, and includes a message from the president. The four major CLIR programs are described: the Commission on Preservation and Access; Digital Libraries; the Economics of Information; and Leadership. CLIR will not maintain the kinds of grant programs that were a feature of the Council on Library Resources, or be open to unsolicited requests for project support. The report lists the publications that the two predecessor organizations issued in 1996-1997 and describes those that CLIR will issue. CLIR grant and contract recipients, project titles, dates the grants were authorized, and grant amounts are listed. Separate audited financial statements for the two predecessor organizations are provided. (SWC)