This study recommends a variety of actions to create and maintain a Montana union catalog (MONCAT) for more effective usage of in-state resources and library funds. Specifically, it advocates (1) merger of existing COM, machine readable bibliographic records, and OCLC tapes into a single microform catalog; (2) acceptance of only machine readable cataloging for new acquisitions; (3) expansion of existing network terminal facilities; (4) provision for a round robin interlibrary loan communication system; (5) commitment of existing federal funding to the union list project; (6) design of a microform system conducive to conversion to an online system; and (7) installation of microcomputer equipment to upgrade interlibrary communications and reduce costs. It further recommends state legislative actions to provide financial support for the state university interlibrary loan activities and a reallocation of federal funding support. Appendices include interlibrary loan data and a list of potential libraries for a selective retrospective conversion project. (RAA)