This report describes activities of the talking-book program of the National Library Service for the Blind and Physically Handicapped (NLS) of the Library of Congress, with emphasis on activities conducted in cooperation with the Canadian National Institute for the Blind (CNIB) library program. First, the overall NLS program in the U.S. which circulates more than 23 million items and produces 2 million recordings of 2,000 print books a year as well as audio magazines and braille magazines is described. The paper reviews the history of the service since 1931, its collection, the equipment the library has designed and lends to eligible readers, and the library's distribution network. The report then details Canada/U.S. cooperative activities in the following areas: sale of audio/braille books; sale of audio/braille magazines; purchase of CNIB books by NLS; sale of audiocassette containers; maintenance of a Union Catalog of special-format books; development of a Birdsong Tutor program; development of the Reader Enrollment and Delivery System program; development of a "train the trainer" volunteer repair program; relationships between the Braille Departments of both institutions; the convening of an international conference; cooperation on advisory/technical committees; development of Friends of Libraries programs; and cooperation on copyright issues. (DB)