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[[underlined]] Air & Space/Smithsonian [[/underlined]] continues to show strong vital signs. Conversion rates and renewal rates are excellent, newsstand sales are good, and museum shop sales are picking up. While advertising is slightly under quote, it has been buoyed by an important eight-page automobile insert which is doubly beneficial because it gives the magazine a generalist "look" as distinct from one of a specialized air/space journal. The magazine has had a couple of recent break-even or better months, but projections for the remainder of the year and beyond must await further analyses of its circulation. With a circulation now at about 300,00, the magazine already ranks with the biggest in the field; how much it can grow beyond that level is yet to be determined.

In general, both magazines face a challenging year. Subscription prices cannot be prudently increased at this time, but costs are going up: postal increases are due in in April and paper prices will go up in several stages in the year to make up for a long moratorium on increases.

[[underlined]] Exhibition Space in Commerce Department Building [[/underlined]]

Assistant Secretary for Museums Tom Freudenheim and his associates have been discussing with appropriate officials at the Department of Commerce the possibility of using space in the "Great Hall," which is now occupied by a Tourist Information Center, for exhibition purposes. The space in question, approximately 15,400 square feet in area, is at the north end of the Department of Commerce building, on ground level, along E Street, and directly opposite the recently restored Willard Hotel. It would provide a venue for exhibitions of all disciplines organized by SITES, any Smithsonian museum, or an outside organization. Presently there are many instances when exhibitions that are appropriate to the Institution cannot be accommodated because of space restrictions. The area under discussion would alleviate the problem without having to create new space at prohibitive costs.

A feasibility study, funded jointly by the Smithsonian and the Department of Commerce, is currently under way. It will analyze the existing conditions, including architectural, mechanical, and electrical systems, assess the space technically and economically for conversion to exhibition purposes, and provide cost estimates both to restore and operate the space. The estimates will be presented in the form of options at different levels of complexity and with different financial requirements. Extensive interviews have already been conducted with various Smithsonian staff members as well as experts from the outside and representatives from the Department of Commerce, and a preliminary draft of the report (50% submittal) has been circulating for comment. The completed study will be submitted in mid-March, and soon afterwards further negotiations will begin with officials at the Department of Commerce, assuming that both parties consider the options viable and worth pursuing.

[[underlined]]  Smithsonian Associates' Research Expedition Program [[/underlined]]

The Smithsonian National Associate Program has proposed to introduce "Smithsonian Associates Research Expeditions," a new educational program and member benefit which will enable volunteers to assist Smithsonian scholars with both their labor and their financial support. Through