Abstract All the Asian-American, white, and black children in grades 2 through 6 in a California school district were given a battery of tests including measures of IQ, scholastic achievement, and short-term memory. Factor analysis of the tests yielded two main factors identified as Level I (memory) and Level II (general intelligence) in Jensen's system. The three ethnic groups were compared with one another on uncorrelated Level I and Level II factor scores. At every grade level, bivariate means of the three groups occupy distinctly different quadrants in the factor space. Asians and whites differ on Level I (A < W) but not on Level II. Asians and blacks differ on Level II (A > B) but not on Level I. Whites and blacks differ (W > B) on both Levels I and II, but the white-black difference on Level I is less than one fourth as large as the white-black difference on Level II. A similar pattern of group differences is found for scores on tests of memory and nonverbal IQ. Scholastic achievement shows much smaller correlations with the Level I than with the Level II factor.