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[[underlined]] Secretary's Report on the Quadrangle [[/underlined]]

Legislation authorizing planning of the Quadrangle project was enacted and signed by the President on July 20, 1979. The Act, P.L. 96-36, authorizes the Smithsonian Institution to plan for the development of the area south of the original Smithsonian Institution Building adjacent to Independence Avenue at Tenth Street, Southwest, in the city of Washington. Section 2 of the bill provides that "effective October 1, 1979, there is authorized to be appropriated to the Board of Regents of the Smithsonian Institution $500,000 to carry out the purposes of this Act."

Let me summarize the current status of the funding for the project: The House Subcommittee of Appropriations did not recommend funding our $500,000 request at this time. The Committee stated confusion as to costs and certain elements of the Oriental Art building. These questions have been answered in detail and a copy of the letter to Chairman Yates is attached.

We have appealed to the Senate to restore a part of the request, $250,000, in order to maintain our momentum in planning. Senate action and the subsequent Conference on the Appropriations bill are not expected until some time this autumn. In my meetings with members of the Senate Subcommittee on Appropriations I have been led to understand that certain members seem willing to support restoration of half the amount authorized. In the meantime, however, I plan to exert every effort in raising private funds from many sources.