This paper explores the conflict between instruction that characterizes Chapter 1 programs (which appear to advocate segmentation, isolated skills instruction, and other curricular incongruencies with the core reading classroom) and instruction that results from whole language philosophy. The paper maintains that the conflict may be due to a misinterpretation of Chapter 1 guidelines by state and local agencies. It examines the inadequacies of Chapter 1 reading programs resulting from the currently held unstated philosophy created by its guidelines, and discusses the nature of effective reading instruction based on whole language philosophy that could occur in Chapter 1 programs dependent on a reinterpretation of Chapter 1 guidelines. The paper's 4 sections are as follows: (1) Introduction; (2) Review of the Literature; (3) Implications for Instruction; and (4) Summary and Conclusions. Forty-four references are attached. (SR)