The report summarizes a conference on the state of British higher education which took place closely following publication of the Dearing Report (Summer 1997) on the role of colleges and universities in labor force and economic development. An introductory section gives an overview of enrollment trends, the funding system, public policy concerning the purposes of higher education, demands facing the universities, meeting industry needs, research in universities, and policy needs. The second section examines the role of scholarship in the universities, including the distinction between scholarship and research, and academic freedom and freedom of speech. The third section addresses the role of British higher education in the global education market, and section four its role as a national training agency. Research funding and policy are discussed in the fifth and sixth sections, and the universities' role in British competitiveness in the global commercial market in the seventh. The concluding section summarizes current challenges to the universities. A list of conference participants is included. (MSE)