This document discusses the ethnic imbalance and intergroup relations problems in a California school district with a high proportion of Spanish surname pupils and some Negro American Indian, and other nonwhite students. Prepared for the Colton districtBoard of Education, the report presents data on racial and ethnic distribution in the various schools, unequal educational opportunity, the culture-conscious vs. "melting pot" sentiment in the community, staff attitudes and social and co-curricular activities. Several proposals for improving ethnic balance are offered and recommendations to the Board of Education for improving intergroup relations are included. (See also UD 006726, UD 006730, UD 006731, and UD 006732). (NH)