This Technical Progress Report summarizes some of the work done during the Summer of 1994 and in May 1995. In many cases, our thoughts and views have undergone substantial changes making portions of this report obsolete. In particular, we no longer hold the view that the compiler should be expected to perform any sort of clever optimization or be expected to find alternate solutions. In fact, the third participant is now referred to as the system software and not just the compiler. Many aspects of the contracts have also changed. For the latest version of our work, we refer the reader to a pending publication [19].