The development of a plan for language teaching evaluation and the first steps taken to implement it are reported. The plan, developed as a result of efforts to assist the Defense Language Institute in program evaluation, involves direct observation of language instruction in progress. Outside observers would assess the degree to which course design, program administration, and individual teaching performance conform to certain principles, policies, and procedures that have been demonstrated to play a role in successful language learning. The final evaluation would also draw on the observations of the students in class and the teachers themselves to the extent that those observations would also have been demonstrated to be relevant. The report outlines the formal steps of the evaluation plan and provides a more detailed discussion of the ways in which it extends standard evaluation procedures. Results of initial implementation at the 1965 National Defense Education Act (NDEA) Summer Institute for Teachers in Foreign Languages are also presented and discussed. Rating instructions and tabulated ratings are appended. (MSE)