The Western Interstate Commission for Higher Education (WICHE) received a year's grant from the Council on Library Resources to design and develop a library network for 17 western states. Major activities of the second quarter included: (1) hiring the project director; (2) continuing to acquire information on recent developments in networking; (3) visiting major library organizations in the Pacific Northwest to explore their participation in the network; (4) initiating a study of telecommunications needed for libraries; (5) nominating the persons to be appointed to the network organizing steering committee; and (6) preparing the first newsletter to bring western librarians up to date on the project. The appendices include a cost and funding study summary, financial report, survey results, and the first newsletter. (Author/KP)