The objective of this study was to provide the background necessary for a statewide system of interlibrary cooperation to be developed in a Phase II study. Interviews were held with nearly 70 individuals throughout the state and research was conducted to gather data on Oregon in general, on Oregon libraries, and on examples of interlibrary cooperation in other states. The report discusses (1) library cooperation versus library development; (2) library needs of education, local government, and business and industry; (3) problems and prospects of meeting these needs; and (4) activities planned for the Phase II study. It is recommended that these activities include investigation of (1) regional systems, (2) cooperative mechanical functions, (3) user needs, (4) available resources, (5) mechanics of a finished system, (6) data processing applications, and (7) economic feasibility. (JW)