The third annual compilation and analysis of data on Title II of the Elementary and Secondary Education Act (ESEA Title II), this report describes how the 50 states, the District of Columbia, Guam, Puerto Rico, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Bureau of Indian Affairs of the U.S. Department of the Interior utilized Title II funds in FY 1968 for the improvement of educational quality and opportunity through increased school library resources, textbooks, and other instructional materials. It consists of three parts: (1) a financial report, showing expenditures by category; (2) a statistical report, providing data on personnel of the state education agencies and the Bureau of Indian Affairs, children and teachers participating in the Title II program, and materials acquired; and (3) a narrative report, summarizing and evaluating the program, describing achievements made possible by the program, and identifying problems. In addition, some supplementary data obtained from 30 states on special-purpose grants projects funded under ESEA Title II are included. (Author/JD)