IN ACCORDANCE WITH TITLE SIX OF PUBLIC LAW 89-10, THE NATIONAL ADVISORY COMMITTEE ON HANDICAPPED CHILDREN MUST MAKE RECOMMENDATIONS TO THE COMMISSIONER OF EDUCATION AND REVIEW THE ADMINISTRATION AND OPERATION OF THE PROVISIONS OF THE LAW ADMINISTERED BY HIM, WITH RESPECT TO HANDICAPPED CHILDREN, INCLUDING THEIR EFFECT ON IMPROVING THE EDUCATIONAL ATTAINMENT OF SUCH CHILDREN. THE REPORT OF THE COMMITTEE'S WORK INCLUDES A SUMMARY OF ITS VIEWS AND RECOMMENDATIONS AND AN EXPLANATION OF ITS REPORT. A REVIEW OF CURRENT ORGANIZATION AND PROGRESS OF THE BUREAU OF EDUCATION FOR THE HANDICAPPED IS PROVIDED, ALONG WITH AN ORGANIZATIONAL CHART. INFORMATION IS INCLUDED ON THE DIVISION OF RESEARCH, THE DIVISION OF EDUCATIONAL SERVICES (ASSISTANCE TO STATES FOR EDUCATION OF HANDICAPPED CHILDREN AND AID TO STATE INSTITUTIONS FOR THE HANDICAPPED), AND THE DIVISION OF TRAINING. THE BUREAU'S PROGRAMS ARE EVALUATED, AND RECOMMENDATIONS ARE MADE FOR THEIR IMPROVEMENT. SPECIAL AREAS NEEDING DEVELOPMENT ARE DISCUSSED, INCLUDING (1) SPECIAL LEARNING DISABILITIES, (2) EARLY PRESCHOOL EDUCATION OF HANDICAPPED CHILDREN, (3) PROGRAM DEVELOPMENT FOR HANDICAPPED CHILDREN IN THE INNER CITY AREAS, AND (4) EDUCATION OF HANDICAPPED CHILDREN IN RURAL AREAS (DEVELOPMENT OF SPECIAL EDUCATIONAL ADMINISTRATIVE UNITS FOR SPARSELY SETTLED AREAS, OF SPECIAL REGIONAL BOARDING FACILITIES ON A SHORT TERM BASIS, OF TRANSPORTATION SYSTEMS THAT WILL REACH HANDICAPPED CHILDREN IN REMOTE AREAS, AND OF PROCEDURES USING MODERN COMMUNICATION TECHNIQUES FOR HOMEBOUND CHILDREN). ALSO INCLUDED IN THE REPORT ARE THE LETTERS OF TRANSMITTAL, A LIST OF THE COMMITTEE'S MEMBERS, AND THE LEGAL DEFINITION OF HANDICAPPED CHILDREN (PUBLIC LAW 88-164). (JD)