A LINGUISTIC PROCESSING SYSTEM, WHICH HAS BEEN DEVELOPED FOR CHINESE TO ENGLISH MACHINE TRANSLATION, UTILIZING THE CONTEXTUAL ASSOCIATIVE METHOD WAS DESCRIBED. THE REPORT INCLUDES (1) AN EXPLANATION OF THE LINGUISTIC PROCESSING SYSTEM, (2) MORPHOLOGICAL AND SYNTACTIC ANALYSES, AND (3) AN ANALYSIS OF ENGLISH INFLECTION. MACHINE APPLICABILITY WAS STRESSED THROUGHOUT, AND TESTING OF LINGUISTIC RULES BY MACHINE WAS INITIATED AND PROVED VALUABLE. THE CHINESE INPUT WAS PROCESSED BY CHICODER, A DEVICE USED TO ENCODE CHINESE CHARACTERS. (KL)