BECAUSE TEACHERS NEED RESOURCES BOTH TO ASSESS AND TO DEVELOP INTELLECTUAL SKILLS IN YOUNG CHILDREN, THE NEW YORK CITY BOARD OF EDUCATION AND THE EDUCATIONAL TESTING SERVICE UNDERTOOK A PROJECT IN THE FIRST GRADES OF 25 ELEMENTARY SCHOOLS DURING THE 1964-1965 SCHOOL YEAR. FOUR ASSUMPTIONS FORMED THE THEORETICAL BASE OF THE PROJECT--(1) INTELLIGENCE IS A SET OF DEVELOPED SKILLS, NOT AN INHERITED CHARACTERISTIC, (2) INTELLECTUAL SKILLS DEVELOP AS A RESULT OF INTERACTION WITH ENVIRONMENT, (3) LEARNING MOTIVATION IS INHERENT IN CHILDREN, AND (4) INTELLECTUAL DEVELOPMENT IS SEQUENTIAL AND PRODUCES QUALITATIVE CHANGE IN THOUGHT PROCESSES. THESE ASSUMPTIONS WERE APPLIED TO CLASSROOM SITUATIONS THROUGH THE DEVELOPMENT OF (1) A GUIDE FOR TEACHERS, "LET'S LOOK AT FIRST GRADERS," (2) BOTH TESTING AND INSTRUCTIONAL MATERIALS FOR CLASSROOM USE, AND (3) WRITTEN EXERCISES, ALL OF WHICH RELATED TO INTELLECTUAL RATHER THAN TO EMOTIONAL, SOCIAL, OR MOTOR SKILLS. THESE INITIAL TRYOUT MATERIALS WERE USED AND APPRAISED BY PARTICIPATING EDUCATORS AND REVISED FOR USE IN A LARGER NUMBER OF SCHOOLS IN 1965-66. FUTURE RESEARCH WAS TO DETERMINE THE LONG-RANGE EFFECTS OF THE PROJECT. (LG)