The stringent economic circumstances in which the whole education service operated during the reporting year dominated the policy direction and actions of the Council, which views the financial restrictions as a challenge that educational technology can help to meet. Included in this annual report are: (1) a review of the year's activities; (2) a Council statement on educational technology in a time of economic stringency; (3) financial reports; (4) membership of the Council and its committees, work groups, and staff; and (5) a register of participating organizations. Appendices contain the report of a conference on Open Learning Systems for Mature Students; the Council response to the report of the Committee on Continuing Education of the Open University; a summary of oral evidence given to the Annan Committee on the Future of Broadcasting; and comments on the White Paper "Our Changing Democracy: Devolution to Scotland and Wales." (Author/STS)