This report is based on an in-depth study of early education in five multicultural primary schools in England's West Midlands. The aim of the study was to identify developments and features of organization that facilitate communication between teachers and children and among the children themselves. Specifically examined were the abilities of 247 children entering primary school reception classes during 1982-83 as shown over time and in different settings. A total of 41 percent of participants were indigenous Whites, 34 percent were of Asian origin, 24 percent were of Afro-Caribbean origin, and the remaining 1 percent were of other backgrounds. Part I of the report describes the characteristics of the schools, classes, and children. Part II describes the language abilities of children in a variety of settings. In the discussion, attention is drawn to some children with communication problems and to the influence of the setting on their apparent competence. Evidence is also reported of young children's ability to sustain complex language in a variety of settings and, in some instances, in more than one language. Interview schedules for teachers of reception classes and for parents are appended. (RH)