The primary, secondary, and higher education textbooks used in China today date from the late 1970s which makes them inadequate for the current stress on science and technology in education. While 70 percent of the higher education textbooks are mimeographed, unedited manuscripts, the majority of published books are printed on newsprint quality paper with small pages, narrow margins, and poor illustrations and line drawings, and the pages are too crowded with print. This evaluation report discusses and offers recommendations for: (1) the financial management of textbook production and sales; (2) the implementation of upgrading the textbooks; (3) the educational effectiveness of textbooks; (4) textbook distribution; and (5) the projected work force needed for the publication process. Appendix 1 contains charts and tables of educational government agencies, publishing houses, and publishers involved with the production, while appendices 2 and 3 contain data tables of education statistics and the estimated cost for publication. Appendix 4 is a glossary of printing terms, and appendix 5 contains an eight-item annotated bibliography. Tables are included. (DJC)