The third and final interim report is devoted to analysis of research data relating to a 3-year experimental reading program for Mexican American children at the Malabar Street School in Los Angeles. The program utilized language development methods, individualized instruction, and parental assistance to improve the children's competencies. Using 4 hypotheses, the investigators attempted to identify significant differences in reading, arithmetic, and language development with the preschool and primary students as compared to 1966 baseline data. Using the Stanford Reading Test, the California Reading Test, a project designed Sight Vocabulary Test, and the Malabar Vocabulary Test with the sample, it was concluded that there were significantly higher scores on the reading tests by children in the experimental program when compared to baseline groups and there was evidence of significant achievement in oral language development. In addition, experimental third-grade pupils were slightly superior in total arithmetic scores. Achievement differences between the sexes were also cited. Recommendations included using the Malabar experiment as a model for Los Angeles; employing research aides for part-time teacher assistance; expanding the program to the 4-6 grade level; and providing inservice training for school personnel. (ED 016 757 is a related document.) (AL)