Higher-derivative supergravity in U(1) superspace

The complete structure of curvature squared terms is analyzed in the context of chirally extended supergravity, with special emphasis on the gravitationally induced Fayet-Iliopoulos D--term. Coupling of (chiral) matter is discussed in relation with a possible extension to U(1) supergravity of the equivalence mechanism between $\cR+\al\cR^2$ and General Relativity coupled to a scalar.