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-19- [[underlined]] The Secretary's Report [[/underlined]] Mr. Adams presented a number of topics which were quite tentative or of rather recent origin as the business of the Institution and which therefore were not reflected in the status reports and other agenda papers distributed in advance of the meeting. He began his presentation by introducing Mr. Tom Freudenheim who has been appointed Assistant Secretary for Museums effective February 3, 1986. Mr. Adams also passed around the table pictures of the half-sized scale model of the mechanical flying reptile, the [[underlined]] Quetzalcoatlus northropi, [[/underlined]] photographed in flight over the Mojave Desert. He terms it a marvelous accomplishment of coordinated work of aeronautical engineers and paleontologists. PLANNING FOR AN IMPLEMENTATION OF BUDGET REDUCTIONS The Secretary reported that the Institution's share of the Gramm-Rudman-Hollings sequestration of fiscal year 1986 appropriated funds amounts to 4.3%, or a reduction of approximately $8.6 million (all but a million dollars of which comes out of operating funds). This sequestration comes on the heels of a 2% base reduction and other earlier cuts in 1986 funds which placed the appropriation almost $12 million below the amount requested for 1986. He added that cuts later in the year on the 1987 funds could well be 3 to 5 times as large. To meet current and future cuts, the Secretary said he has asked his Management Committee, the Council of Bureau Directors, the Council of Information and Education Directors, and the Council of Administrative Officers to prepare advice on the most appropriate steps. Initial advice has been received and preparations are underway for making the necessary reductions for fiscal year 1986. (While