7 year olds are almost certianally not capable of the type of sexual harassment we see in adults. They simply do not have the necessary social, ethical, or moral technologies in place yet (let alone an almost complete lack of sexual drive). The first case is a case of overreaction. Tell the boy it's wrong, and tell him why. Suspending the first kid was irresponsible and reactionary. This is why it is extreemly important to have sexual education in schools. The second kid has the beginnings of antisocial behavior, and should be monitored by a professional over the next few years. His behavior was not sexual, however. It was intended as offensive in a more general sens, probably in order to get attention. I suspect that he doesn't have very much knowledge about sexuality at all, let alone sexual perversion.
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