This publication reports on student achievement in the basic skills of reading and mathematics at Years 5 and 7 in 52 urban schools of the Northern Territory of Australia in 1986, the third year of implementation of the Primary Assessment Program (PAP). PAP has been acknowledged by the national committee of the Australian Cooperative Assessment Program as significant because of its role in providing quality evaluation and assessment strategies for use by schools and teachers to review and improve teaching and learning. The report consists of 13 chapters, most of which offer detailed analyses of various sections of the assessment tests, including examples from the testing instruments. Early chapters of the report discuss the criterion referenced testing used in the program and the program's approach to data collection and analysis. An evaluation of the results indicates that for the majority of questions in the reading test and mathematics test, the success rates were generally satisfactory. Performance was particularly good in routine computation and measurement in mathematics. Areas of weakness are reported to be decimal computation in Year 7 and comprehension of prose passages in Year 5. Included are numerous sample test items, 14 tables, an appendix containing 39 additional figures illustrating results, and 14 references. (JB)