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This edition of Carolina Forum includes the following two reports: SHIFTING URBAN POLICY TARGETS: IMPACTS ON NORTH CAROLINA AND THE SOUTH: According to the press, the states of the Snowbelt are involved In a "new civil war" with the states of the Sunbelt. Governors have become generals, defending their regions. Skirmishes are fought in the North and South; while the major battle goes on in Washington, D.C. Battalions of regional interest groups are marshalled, each firing broadsides of research and policy analysis. Computers are the primary engines of war, supplying ammunition for policy thrusts and counterthrusts. To the victors go the spoils in the form of new federal funding formulas. Is this simply another media event, trying to capture public attention by overplaying political rhetoric? Maybe so, but beneath the rhetoric a significant shift In federal policy Is being engineered which will have lasting consequences for the citizens and public officials of North Carolina and other developing southern states. Under the guise of "targeting" federal funds on urban problem areas, the present administration Is systematically changing the rules for allocation of grants so as to favor older, declining cities, mostly In the Northeast and Midwest, while neglecting newer, growing southern and western areas. PLANNING FOR NATURAL DIVERSITY: THE N.C. NATURAL HERITAGE PROGRAM: For conservationists in North Carolina, it is an exciting time. In recent months, a four million dollar purchase of Currituck Banks sanctuaries has been made possible by the largest conservation gift in the history of American foundations. The preservation of the Green Swamp national natural landmark has been achieved through one of the largest land donations by an American corporation. Fund raising and negotiations are in progress to acquire more of North Carolina's finest natural areas. A strong conservation spirit is gaining force. Conservation in North Carolina is scoring victories through an unusual alliance of environmentalists, business, universities, foundations, and government. Many of the current achievements are spawned by the creation of two young and parallel efforts: the North Carolina Nature Conservancy and the North Carolina Natural Heritage Program.