Public diplomacy describes a government¿s efforts to conduct foreign policy and promote national interests through direct outreach and commun. with the population of a foreign country. Activities include providing info. to foreign publics through broadcast and Internet media and at libraries and other outreach facilities in foreign countries; conducting cultural diplomacy, such as art exhibits and music performances; and admin. internat. educational and professional exchange programs. This report discusses the issues concerning U.S. public diplomacy. Determining levels of public diplomacy funding. Establishing capabilities to improve monitoring and assessment of public diplomacy activities. Charts and tables.