A report on the teaching of modern languages in Australian higher education is presented in two volumes. The first volume contains the text of the report. An introductory section describes the aims and methodology of the national review and places it in a historical context. The remainder of this volume is in three parts. The first part identifies Australia's language needs in these areas: intellectual and cultural; business, finance, and industry; and tourism; international relations; health and education; science and technology; and language teaching. The second part assesses the state of modern language instruction in higher education, including: languages offered; aims and objectives of instructional programs; institutional structures for language education; program design; teaching methods and curricula; student characteristics; incentives and disincentives to language study; teacher characteristics and qualifications; language teacher education; research on language teaching; and support structures and materials. The third part offers conclusions and recommendations on availability of language instruction, efficiency and effectiveness, promotion of language learning, and costs of these efforts. The second volume contains 12 appendixes, including profiles of higher education institutions, awards programs, study-related documents and data, and summaries of Australian language education surveys. (MSE)