This report discusses the effectiveness of current programs and personnel policies in federal agencies with respect to foreign language needs. Overall, the United States has about 16,700 federal positions requiring language skills. The General Accounting Office (GAO) found that the foreign language competence of American personnel abroad is less than adequate for maximum effectiveness and efficiency, though some agencies are better than others. This inadequacy is attributed to the fact that the system for defining foreign language skill requirements is insufficient or nonexistent, and improvements are needed in foreign language assignments and in training policy and procedure. Low foreign language proficiency limits job performance, but efforts by federal agencies to meet language needs are hampered by: (1) inadequate planning which places insufficiently skilled people in language-related positions, (2) inadequate language training, (3) unforeseen turnover in these language-related positions, and (4) the fact that second language skill is only one of many capabilities an employee needs. Recommendations are given to help improve personnel policies and practices, language training programs, and the process for determining foreign language requirements. (PJM)