A survey of the literature in the last ten years and interviews with library and security personnel indicated: (1)the problems of handling classified information in libraries have been scanted; (2) there is wide divergence in policies and practices of disseminating such materials; (3)interlibrary cooperation with respect to classified holdings is reduced to minimum compliance with administrative or contractual obligations; (4)technical intelligence is perhaps artifically divorced from technical information suitable for dissemination within the military-industrial community. Following a critical analysis of survey findings, recommendations for action and further studies are presented. Appendixes include a bibliography of 81 items, a checklist of laws and regulations governing security classification for Department of Defense library and information services, and a list of facilities surveyed and persons interviewed. (Author/JB)