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In the future, [[underlined]] Air & Space [[/underlined]] Associates can be raised to higher categories of memberships, just as Smithsonian National Associates move up to Contributing Membership status.

List rental, a significant source of magazine and mail order income, is being developed by [[underlined]] Air & Space [[/underlined]] and is projected to exceed $1,000,000 within five years. The experience gained by [[underlined]] Air & Space [[/underlined]] will be helpful to [[underlined]] Smithsonian [[/underlined]] when it rents its list.

A quick summary of five-year prospects is given in the following table.

[[6 column table]]
[[heading]]
[[underlined]] | 1989 | 1990 | 1991 | 1992 | 1993 [[/underlined]]
[[/heading]]
Circulation | 325,000 | 350,000 | 375,000 | 400,000 | 425,000
Advertising (pages) | 155 | 165 | 176 | 184 | 192
Combined Income (000's) | $7,500 | $8,400 | $9,200 | $11,100 | $12,000
Estimated Admin. Fees | $400,000  | $430,000 | $460,000 | $500,000 | $530,000
Estimated Surplus Ranges (000's) |  $300-600 | $600-900 | $800-1300 | $1700-2300 | $1900-2400
[[/6 column table]]

As a new magazine all projections must be regarded with even more than the usual caution. The pay-back in dollar terms can be expected by 1993, but that does not take into account the echo effect [[underlined]] Air & Space [[/underlined]] Associates' purchases and contributions to other divisions, as noted in the foregoing text. There follows a brief bottom-line history of the Magazine:

[[2-column table]]
1985  | $(  434,000)
1986  |  (1,612,000)
1987  |  (1,910,000)
1988* |  (  592,000)
Total | $(4,548,000)
*Projected
[[/2-column table]]

[[underlined]] ENHANCEMENT OF SMITHSONIAN RESOURCES FOR ACTIVITIES ABROAD THROUGH "DEBT SWAP" AND RECEIPT OF DONATIONS OF BLOCKED FOREIGN CURRENCIES [[/underlined]]

Mr. Adams introduced the following report for the Regents' information.  He mentioned that "debt swaps" and related financial devices, which would lend significant support to Smithsonian projects overseas, have been used recently by other organizations, including the Catholic Charities and the Red Cross, and have received the blessing of Treasury Secretary Baker as having negligible impact on the United States'