In February 1991 the U.S. Commission on Civil Rights began a long-term study of the factors contributing to increased racial and ethnic tensions in the United States. This document is a report on one aspect of this study, a hearing held to consider the factors underlying increased racial and ethnic tension in Chicago (Illinois). This hearing was the third in a series convened as part of the larger project. The report focuses on three major sources of racial and ethnic tensions in Chicago, each of which is the subject of a section of this report: (1) issues in economic development; (2) minority access to public services; and (3) police-community relations in Chicago. In general, the U.S. Commission on Civil Rights concludes, as a result of this hearing, that distinct differences exist in racial and ethnic groups in both economic activities and access to public services. In Chicago as in other urban areas, minority populations and businesses continue to face obstacles to obtaining financial credit and technical assistance, decent housing, language-appropriate social services, and culturally sensitive services. Improvements are also needed in procedures and systems for citizen complaints of police misconduct. Recommendations are made to reduce racial and ethnic tensions in Chicago. These recommendations have national implications. Three dissenting statements representing the views of four commissioners are also presented. (Contains five tables.) (SLD)