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at the Regents' meeting on January 27 (see below, under Report of the Investment Policy Committee).

In his oral presentation to the Committee, Mr. Adams discussed a variety of matters he would raise again in the Secretary's Report for the meeting of the Board.  Among these items, he mentioned that he had drafted a set of partially decentralized procedures for Smithsonian development activities and, after discussion, the Committee endorsed this new approach.  The Secretary also pointed out that the Institution had recently received requests from several prominent foreign institutions for loans of an astonishing array of precious objects from the National Collections.  He briefly described the difficulties inherent in loaning pieces that would be widely regarded as "national treasures" despite occasional, strongly pressed requests to do so, and agreed to draft a brief policy statement on this matter for the Regents' consideration (also presented below).

Reporting on the status of trust and appropriated funds for fiscal years 1985-1987, Miss Leven and Mr. Jameson noted that while the Institution has generally received favorable treatment in the recently enacted Continuing Resolution for fiscal year 1986 and the initial allowance from the Office of Management and Budget for fiscal year 1987, the status of federal funds continues to be uncertain for these and the out years because of unknown consequences of the Gramm-Rudman-Hollings initiative.  The Executive Committee endorsed the suggestion that the staff postpone the final version of the Five-Year Prospectus until it can be appropriately scaled back in the light of unfolding budget realities.

[[underlined]] Proposed Amendment to the Bylaws of the Board of Regents [[/underlined]]

Mr. Humelsine noted that the following proposed bylaw is intended to alert members of the Board to situations where they or an organization with which they are involved might have business or financial transactions directly with the Institution.  Any such transactions should be disclosed to the Executive Committee so the Regents will have a document to be filed for the record, or as the basis for an appropriate action, to alleviate a possible conflict of interest or its appearance.  It is limited to a Regent's business or financial involvement directly with the Smithsonian, and thus, for example, would not normally cover transactions such as Smithsonian purchase of stock in a corporation in which a Regent may have some financial interest.  This proposed bylaw is consistent with and makes explicit the Regents' obligation as trustees.

Section 2.10  [[underlined]] Disclosure [[/underlined]]:

A member of the Board of Regents shall disclose in writing to the Executive Committee any financial transaction or business dealing with the Institution in which such member has a direct involvement.

It was recognized that this amendment was presented to the Board of Regents for its initial discussion only.  In accordance with the