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VOTED that the Board of Regents, having considered the findings of its [[underlined]] ad hoc [[/underlined]] committee on food services, authorized the Secretary to (1) issue new Requests for Proposal for Smithsonian restaurant services on and near the Mall and negotiate contracts for same; (2) plan and contract for the construction of a new restaurant facility on the east terrace of the National Air and Space Museum and such other capital improvements to existing facilities as may be prudent; and (3) finance these undertakings with available unrestricted trust funds or funds to be borrowed from banking institutions.

[[underlined]] Report of the Investment Policy Committee [[/underlined]]

Mr. Humelsine highlighted the deliberations at the meeting of the Investment Policy Committee held in November (the complete report follows). He focused on the Committee's discussion of investments in companies doing business in South Africa. He particularly noted that strictly free from an investment point of view the Committee had recommended the Institution continue to hold shares in the Trustees Commingled Fund-International Equity Portfolio managed by Batterymarch.

After extensive discussion, the Board of Regents noted that the Investment Policy Committee had plenary authority as to investments, and the subject was referred to that Committee to consider whether the Smithsonian's investment in the Trustees Commingled Fund was consistent with the action taken by the Executive Committee in June 1985. This action, ratified by the Board in September 1985, mandated the sale of the Institution's investments in U.S. corporations doing business in South Africa without subscribing to the Sullivan Principles. (Subsequent to the meeting, Mr. Humelsine, as Acting Chairman of the Investment Policy Committee, confirmed that there was an inconsistency with the previous action. After conferring with members of the Committee, he requested the Treasurer to order the sale of the Institution's holdings in the Trustees Commingled Fund.)

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