Relations between the public and private sectors of higher education are discussed. In the first chapter, John W. Gardner provides a historical perspective to the recent conflict in some states between public and private colleges and universities. In addition to discussing the pluralism and diversity that have characterized U.S. colleges and universities, he suggests that public-private college differences should be seen in the larger context of shared goals, interests, and values. Next, Robert H. Atwell provides a view from Washington, or the perspective of the national associations. He discusses sources of institutional funding and competition for funds and for students, and suggests that the states and communities will have a major role in keeping the dual system of higher education unified. A discussion of intersector issues is provided by Robert O. Berdahl. He reports the results of a survey of Pennsylvania, Illinois, Maryland, North Carolina, and New York. A total of 405 responses were received to questionnaires mailed to public policy liaison trustees and presidents. The survey sought information on the conditions of relations between the sectors, the issues that join and divide public and private institutions, and the policies and mechanisms that affect intersector relations at the state level. (SW)