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Introducing the report, the Secretary suggested that there is significant potential in these areas of activity and in broadening the participation of the Institution's 2.4 million Associates, a potential which has yet to be more than touched. It was emphasized that special efforts need to be made to reorganize and enhance development operations, to build a more effective volunteer network, to manage more intelligently lists of Associates as potential mail-order and retail customers  and those persons of distinction who need to be brought into the Institution's network through special events, and to integrate the strategic planning process in the evolution of a better informed development operation. Emphasis was also placed on creating a statement that describes the Smithsonian in terms of a partnership between the  Federal and "private" sources of its support and on the presentation of that case in a series of nationwide events organized by members of the National Board of the Smithsonian Associates. In discussion, it was noted that the efforts to cultivate a greater number of donors among the Smithsonian Associates can only be undertaken after the nature of that membership and its interests are known, and to that end the work of the Office of Institutional Studies will be of immense help. Special note was taken of the coordinating efforts of a great number of people, including the members of the National Board of Smithsonian Associates who have responded positively to the challenges which are beginning to be spelled out.

[[underlined]] NATIONAL MUSEUM OF THE AMERICAN INDIAN [[/underlined]]

Various documents presented to the Board of Regents for their consideration included the draft Memorandum of Understanding between the Heye Foundation and the Smithsonian, signed on behalf of the Heye Foundation on March 16, 1989; draft legislation which would implement the Memorandum of Understanding; and various other documentation which is ancillary to or analytical of these drafts.

It was noted that the Regents' individual expressions of concern over the draft Memorandum of Understanding seem to have been addressed in a generally satisfactory way, particularly since most of the responsibilities of the Board of Trustees of the National Museum of the American Indian will be determined by the sphere of action and the general policies laid down by the Board of Regents.

Mr. Adams reported that Senator Inouye had stressed the urgency of submitting legislation in the Senate in the next few days. The widespread enthusiasm for the new museum, he added, stemmed from a common belief that what is needed is an expression in the nation's  Capital which would speak to the American Indians' cultural contributions of both the past and the present.

The Secretary mentioned that Congressman Rangel had raised concerns over the Memorandum of Understanding because neither it nor the draft legislation made any arrangements for substitute museum operations to be carried forward in the present gallery of the Heye Foundation once the Museum of the American Indian is removed from the Audubon Terrace facilities. In discussion, it was generally agreed that Mr. Rangel was correct in drawing attention to this problem, that the solution to the problem should be found in New York rather than in either of the documents under consideration by the Regents, and that the Smithsonian should be prepared to offer programmatic assistance and training to the new Audubon Terrace museum through the Institution's Traveling