This four-part report deals with minimal competency testing with a focus on test development and the federal role in competency testing. The first section presents highlights of a 1978 conference on "Achievement Testing and Basic Skills" chaired by Secretary of Health, Education, and Welfare Joseph Califano. The second section contains the committee report "Improving Educational Achievement" issued by a nine-member committee headed by Stephen K. Bailey. This report, as well as the conferees at Secretary Califano's conference, advised the federal government against entering the business of developing national tests. Relying on the report, Califano recommended to the conference that the federal role be that of research, technical assistance, and as a clearing house for information. The third section of the publication presents the results of a survey of school board presidents about issues in competency testing. The results indicate that school boards would be vehemently opposed to the federal government's creation of national tests. The fourth section of the document is made up of recommendations concerning competency testing that the Education Commission of the States (ECS) has made to state and local governments. The ECS urges a joint effort by state and local authorities in the establishment of testing programs. (Author/JM)