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Consequently, the Secretary as recommended and the Board of Regents has agreed that the Institution should now make a positive response to the Appropriations Committees' request to "consider the possible use of [trust] funds to pay for current programs to lessen the need for federal appropriations." In making and approving this recommendation, the Secretary and the Board Of Regents are appreciative of the sensitivity shown by the House Committee in stating that it "does not want nor intend to impose its will on the Board" and believe that such a positive response by the Institution will foster the continuing spirit of cooperation between the Institution and the Congress that is desired by all.

The Secretary has recommended and the Board of Regents has approved the use of self-generated funds up to the amount of $1,000,000 annually to finance certain activities that were previously covered by appropriated federal funds. Of this amount, some $400,000 (representing the cost of space occupied by auxiliary activities) will be used in FY 1979 and subsequent years to pay for leased space. Other programs or projects to be financed in FY 1979 and in FY 1980 should be determined in consultation with the Appropriations Committees to ensure that the intentions of the Committees and the integrity of the Smithsonian's programs will be well served.

The Board of Regents reaffirms its commitment to development of income-producing resources and increasing the Institution's unrestricted endowment fund by budgeting a substantial portion of each year's income for these purposes. Such action will help to assure the Institution's continued ability to finance collections acquisition, research, educational outreach and related administrative expenses, as outlined above, even if income from current operations in future years should be less favorable. Consequently, the Regents approved the transfer of $3,000,000 of available