Based on the financial and narrative reports submitted by the States and other areas to the U.S. Office of Education, this annual report describes the operation of the Elementary and Secondary Education Act Title II Program (ESEA Title II) in FY 1971 in the 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, the Trust Territory of the Pacific Islands, and areas under the jurisdiction of the Bureau of Indian Affairs. The financial reports show expenditures for state administrative functions and local education agency expenditures for the acquisition of school library resources, textbooks, and other instructional materials; these figures reflect for the first time the effects of the provision enabling the carry-over of funds into a succeeding fiscal year. The narrative reports describe management practices in the administration of the program, developments and accomplishments of the program in support of curriculum and instruction, including contributions to The Right To Read Program and services to private school children and teachers, and critical needs still existing. Six tables provide supportive statistics. (Author/JD)