A study to determine the role of oral language and reading skills in the transfer from two years of reading in Spanish to reading in English had as subjects 191 fourth grade students in a bilingual education program. Students were tested and classified as efficient and non-efficient readers. It was found that: (1) there is a relationship between oral English language proficiency and English reading proficiency; (2) a relationship exists between Spanish and English reading proficiency; (3) certain skills were identifiable as indicative of reading efficiency or non-efficiency; (4) the "Inventario de Destrezas" does not identify the same Spanish reading skills as does a standardized reading test in Spanish; (5) the "Inventario de Destrezas" serves as a good indicator of reading ability 60% of the time; (6) the Oral Language Dominance Measure is a good indicator of future English reading success; (7) student age and sex do not make a significant difference when students are tested in Spanish and English reading; (8) birthplace and income level are significant when students are tested in English reading; and (10) English reading performance varies by school. It is suggested that some of the tests used to make student transfer decisions should be revised, and that a model suggested by the results of this study would supply information about specific skills transferable and non-transferable from Spanish to English reading. In addition, criterion-referenced tests are recommended over standardized tests as a means of assessing actual student learning. (MSE)