THE HISTORICAL BACKGROUND OF THE SYSTEM AND THE DEBATE DURING THE 1960'S WHICH LED TO ITS INCEPTION ARE DISCUSSED. THE PREHEARING PROCEDURES DESCRIBED INCLUDE THE USE OF POLICE WARNINGS, REFERRAL OF THE CASES TO THE PROCURATOR FISCAL, AND THE APPOINTMENT OF A REPORTER AS THE OFFICIAL RESPONSIBLE FOR ORGANIZING THE MECHANICS OF THE SYSTEM AND DECIDING WHETHER OR NOT A CHILD SHOULD HAVE A HEARING. OPEN RECRUITMENT, SELECTION, AND THE COMPOSITION OF THE CHILDREN'S PANEL ARE OUTLINED. THE HEARING PROCEDURE IS PRIVATE AND INFORMAL, AND IT DEPENDS ON PARTICIPATION BY THE PARENTS. DISPOSALS ARE BASICALLY SUPERVISION, EITHER AT HOME WITH SUITABLE TREATMENT, OR IN A RESIDENTIAL ESTABLISHMENT. DISPOSALS MAY BE APPEALED TO THE SHERIFF COURT, BUT THIS IS RARE. THE SECTION CONCERNING POSTHEARING DISCUSSES THE AVAILABLE RESIDENTIAL AND SUPERVISORY RESOURCES, ALONG WITH THE DEVELOPMENT OF INTERMEDIATE TREATMENT PROGRAMS. THE DIFFICULTIES THAT CAN ARISE DUE TO THE LONG LEAD TIME BETWEEN THE STATUTORY RECOGNITION OF A NEW CONCEPT AND THE PROVISION OF NECESSARY TREATMENT AND STAFF RESOURCES ARE NOTED. ONE OF THE SYSTEMS MAIN STRENGTHS IS THE REGULAR REVIEWING OF CASES BY HEARINGS WITH CONSEQUENTIAL DISPOSALS. A GENERAL ASSESSMENT OF THE SYSTEM IS PRESENTED, AND IT IS CONCEDED THAT THE SYSTEM SUCCEEDS IN DIVERTING MOST OF THE CASES INVOLVING CHILDREN FROM THE COURT. BETTER STAFFING AND RESIDENTIAL RESOURCES ARE NEEDED TO PRODUCE A SYSTEM GEARED TO INDIVIDUAL CHILDREN. (DAG)