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Active recruitment for the position of Director of the National Museum of American Art has been under way since January. The job has been opened as both a Federal civil service (GS-18) and a trust position in order to respond to salary and benefit issues on an individual basis. Advertisements have appeared in newspapers, periodicals and professional journals, and a letter inviting applications was sent to an extensive list of referrals. Correspondence has gone to affiliated organizations requesting suggestions of women and minority candidates. After the anticipated closing date of March 31, the search committee, chaired by Sylvia Williams, Director of the National Museum of African Art, will meet and review applications and recommend additional candidates. The committee's recommendations to the Secretary should be forwarded by mid-July.

Recruitment for the new Director of the Smithsonian Institution Libraries has been narrowed to a short list of three, from which Dr. Hoffmann has made a recommendation of one finalist to Secretary Adams. A letter offering the position to this candidate is expected shortly.

[[underlined]] Panamanian Situation [[/underlined]]

The political impasse between the United States and Panama continues with no realistic solution currently in sight. As of this writing, the Smithsonian Tropical Research Institute (STRI) continues not to be substantially adversely affected in its mission -- though approximately fourteen employees of STRI (out of a total of more than 125) were most recently unable to obtain 1989 vehicle registration permits, forcing STRI to provide alternative transportation between their homes and workplaces. Panama has insisted that withheld income taxes currently sequestered by the U.S. Treasury be paid in order to obtain motor vehicle permits. As can be seen, this policy is being sporadically enforced.

Two major research expeditions continued near the Panamanian border with Costa Rica. In addition, a group of scientists from the National Museum of Natural History have been collecting mammals in the Bocas del Toro region of Panama; their work has received the full cooperation of the Panamanian Defense Forces. STRI's research vessel, the R. V. [[underlined]] Benjamin [[/underlined]], crossed to Costa Rica and returned safely. The vessel was, however, stopped by the Panamanian Coast Guard until it could be identified.

The work of the STRI staff in Panama continues apace, including the work on construction projects, emphasizing its apolitical character to both the U.S. and Panamanian governments. These efforts appear to be succeeding since STRI has been able to remain outside the intensifying cycle of retaliation against U.S. activities imposed by Panama. Indeed, Panama has recently granted STRI new facilities for field work in the high altitude watershed of the Fortuna Hydroelectric project. The continued effectiveness of STRI's international reputation seems to be further borne out by the 24% increase in the number of applications submitted for fellowships in the Tropical Biology Program of the Institution, in spite of the widely publicized difficulties in Panama.

The Smithsonian continues to closely monitor the situation both in Panama and Washington. Representations are being made to concerned agencies to ensure the rights and welfare of our dedicated employees. The prognosis for a rapid end to this crisis, however remains dim.