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replacement of building systems. There are additional needs for alterations and modifications necessary for outlying facilities and for meeting program needs (in areas of research, collections management, and exhibitions), and administrative needs (such as a child care center, and expanded space for photographic services). It will require many years to remedy the backlog situation and to meet systems replacement and facility modification objectives. The [[underlined]] Prospectus [[/underlined]], as in past editions, will describe these needs.

[[underlined]] POLICY ON RESTORATION AND RENOVATION, CONSTRUCTION PRIORITIES [[/underlined]]

Mr. Adams introduced the following report, noting that the two categories of work, Restoration and Renovation (R & R) and Construction, commonly viewed as separate for budgetary purposes, are complementary programs which are essential to the Institution's vitality and progress. He added that a lot of work has gone into articulating and reaching agreement in detail on forward projections for R & R projects, using consultants and building-by-building surveys.

Mr. Adams suggested that, because the Smithsonian must remain responsive to new opportunities as they are often unpredictably presented, a list of priorities for new construction must be assumed to incorporate some flexibility. Nonetheless, the Smithsonian can be more orderly in its approach and ought to prepare more completely conceptual papers on what the needs are for new facilities, what problems may be encountered, what the sources of funds might be, and often where the facility might be located. A modest appropriation for forward planning will be of significant help in this effort.

Following his introductory comments Mr. Adams led a brief discussion of the construction projects listed at the end of the report.

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[[underlined]] Overview of the Program [[/underlined]]

The Smithsonian Institution faces two major challenges in the coming years with respect to its facilities. The Institution is responsible for