The first part of this issue of the newsletter reprints an English article summarizing the development of performance contracting in U. S. schools. The second part contains extracts from the educational press of twelve European countries. Extracts in English describe possible new post-secondary educational institutions in Austria; the status of extension of Danish compulsory education; possible consequences of a Bavarian Higher Education law which could conflict with the Federal proposals, and summarizes Federal-Lander cooperative school experiments in Germany; Dutch measures to stimulate educational innovation; the introduction of "middle schools" in years 10-12 of Norwegian schooling; the new Adult Education Bill in Sweden; and British reports on educational and cultural links with Europe, the rising cost of education, trends in reading standards, and projections for university development. Articles in French describe intended reforms of higher technical education and the pact which aims at reducing discrimination in school systems in Belgium; summarize the effects on universities of the third Spanish development plan; describe French legislation concerning reform of the first cycle of secondary education, professional aptitude certificates, and correspondence classes; summarize recent Italian educational legislation; and outline architects plans for future Swiss schools. (AL)