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application from the Marriott Corporation or any other vendor in response to any forthcoming RFP.

3. The [[underlined]] ad hoc [[/underlined]] committee believes that serious consideration should be given to the financing of the new restaurant facilities at the National Air and Space Museum from internal borrowing by the Smithsonian or, especially in light of favorable interest rate considerations, borrowing that may be forthcoming from local financial institutions. At the same time, the [[underlined]] ad hoc [[/underlined]] committee notes that there would be little if any chance of federally appropriated funds for modernization of this facility. Therefore, the Board of Regents should carefully examine the decision to this project on the basis of internal borrowing to insure that no undue future liability over and beyond that which would be covered by new income generated by the facility would accrue to the Smithsonian from this arrangement. The committee noted that the Marriott-LeRoy Corporation continues to content that it would be far more advantageous to the Smithsonian to finance restaurant operations using the borrowing power of an outside contractor. Finally, the [[underlined]] ad hoc [[/underlined]] committee recommends that the Smithsonian staff periodically apprise the Regents ad the Congressional Committee with oversight over the Smithsonian of the progress of this project.

In discussion it was pointed out that the use of a concessionaire's capital for construction would create a large potential liability to the Institution should such a contract need to be severed. After further discussion, it was