When the Trust Territory of the Pacific Islands gradually dissolved in the 1980s, the Republic of Palau assumed a greater responsibility for its own education system. In order to monitor the mathematical achievement of elementary school students during the transition from external to local control of educational procedures, basic skills mathematics tests were administered to students in two elementary schools in Palau. This official report to the Ministry of Education in Palau, which was prepared by a University of Hawaii researcher, describes the various testing activities undertaken from 1984 to 1990, summarizes the results of those testing activities, and makes recommendations for continuation of this study. (Author)