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-7- Senator Jackson reported that while Mr. Austin had been requested by the Committee to attempt to identify outside firms qualified to undertake a study of the Smithsonian's organization and management, this approach had been reconsidered. In the Senator's view, the questions posed by the GAO Report and, more importantly, the questions raised during the Appropriations hearing evidence concerns broader than the day-to-day management of the Institution. Senator Jackson explained that, in his judgment, the questions being raised in the Congress reflect a growing concern over more fundamental matters, such as: the relationship of the Smithsonian to the Federal Government; its relationship to the Congress in particular; the place of the Institution in the Federal Establishment; the statutory authorities under which it operates; the ownership of its properties; and how all of this bears on the Smithsonian's financial and management accountability to the Congress. In Senator Jackson's view, a lack of clarity and a misunderstanding of such matters has contributed to the present problems, and the Regents' first task should be to address these matters directly -- to obtain an impartial review and reassessment of the place of the Institution within the Federal framework. Senator Jackson emphasized the fact that there is nothing in the GAO Report that suggests any wrongdoing or misapplication of Federal funds by anyone. He recommended that the Regents should address themselves to more fundamental