In this 1971 annual report of the National Advisory Council on the Education of Disadvantaged Children, the Council had as its central concern the question: "What is best for the children?" Instead of another Title I ESEA evaluative survey, the Council concentrated on three elements affecting the success of Title I -- delivery of services, parent involvement, and cultural diversity. The relationships of compensatory education and the dynamics of school desegregation were also important concerns the Council faced. Among the Council's recommendations are: (1) discussion of need to solve serious funding problems; (2) endorsement of three-way communication among parents, teachers, and school officials; (3) endorsement of a combined approach to school desegregation and compensatory education; and, (4) endorsement of curriculum materials and teacher preparation which are oriented to the affective factors of teaching culturally different children. (Author/DM)