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[[image - seal of the sender]]
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
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DRAFT

Honorable Daniel P. Inouye
Chairman
Select Committee on Indian Affairs
United States Senate
Washington, D.C. 20510

Dear Mr. Chairman:

This letter is in further response to the question you raised in the Senate Appropriations Committee Hearings on February 28 regarding Administration support for $5 million in planning money for the National Museum of the American Indian.

I indicated at the hearing that the Administration would support this planning money for the new museum. However, I want to emphasize that the Smithsonian is developing estimates not only for the new museum buildings and programs, but also to take over the management of the collections while they remain in New York. The Smithsonian plans to take over the collections at the start of Fiscal Year 1990.

As you know the Smithsonian's budget is included in the residual category of the Bush flexible freeze budget and there may be opportunities to adjust the agency's total during the budget negotiations to provide the necessary funds.

The Administration supports the creation of a new National Museum of the American Indian, if agreement can be reached with Congress on legislation requiring substantial non-Federal contributions for construction ^[[of the public facilities on the Mall and in the New York Custom House.]] The Administration would support legislation to use Federal funds for upkeep, administrative costs and the costs of operations.

I look forward to working with Congress and the Smithsonian on this important undertaking.

With best regards,

Richard G. Darman
Director