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the rifts ultimate edition states that dragon hatchlings start with math basic, language & literacy dragonese/elven, & possibly hand to hand dragon combat.
looking specifically at the cat's-eye dragon:
it states you can have 1 skill at +15% at lvl 1 from a special interest area. it lists: Language: Other (any or all), Literacy: Other (any), Lore (all), & Research.

does that mean you pick one language or you can select all languages? can you select all lore as 1 skill of interest?

The RUE dragon hatchling skill rules don’t appear to match up with any rules written before or after. I’m honestly not sure what to make of them.

This is what your Cat's-Eye dragon would get skillswise:

They would instinctively (aka automatically) know Language & Literacy in Dragonese, and Basic Math. (Also if your game uses the Principles of Magic skill from TtGD, IMO dragons should have that as well).

You then get two Secondary Skills, which would normally be limited by both the list of skills a specific OCC/RCC can take and the list of skills allowed to be taken as Secondary Skills. In this case I don't see a limitation on skills a dragon can take, so IMO this would allow you any skill in the Secondary Skill list.

After that you get one special interest skill, limited to the following:

Research
Literacy: Any. This means you can read/write the one language you pick.

But now we get to two skills that seem to be written weirdly:

Lore (All).
Language: Other (any or all).

These two were left unchanged in the official errata (which I don't see a link to on their store page anymore ). I would think that you're only meant to pick either just one language skill or one lore skill. However, given the two skills both say "all", and the literacy skill just says "any" I have to conclude that if you pick either language or lore to specialize in you get all of the skills found in either category. So for languages you can speak Western, Eastern, Orcish, French, Spanish, American, Trade 4, etc, etc, etc. For the lore skills you'd have Undead, Demons & Monsters, Fairies & CoM, Magic, Religion, etc, etc, etc.