Problems facing the Pacific Basin Territories' attempt to implement P.L. 94-142, the Education for All Handicapped Children Act, include lack of felt need for services to mildly handicapped students, lack of accommodation for cultural values in the law, and confused communications concerning the development of special education. Further difficulties directly related to cultural values are encountered in the identification/assessment mandate, the process of planning individualized educational programs, placement and services, and personnel preparation. Encouraging trends have included funding of a successful technical assistance project, development of special education degree programs in Guam and Micronesia, and an effective approach to inservice training in American Samoa. (CL)