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[[preprinted]]
[[image - seal of City of New York]]

THE CITY OF NEW YORK
OFFICE OF THE MAYOR
NEW YORK, N. Y. 10007
[[/preprinted]]

March 15, 1989

Mr. Robert McCormick Adams
Secretary
The Smithsonian Institution
1000 Jefferson Drive, S.W.
Washington, DC 20560

Dear Mr. Secretary:

I refer to the Memorandum of Understanding to be entered into between the Smithsonian Institution and the Museum of the American Indian, Heye Foundation and to the option paper for the New York element of the National Museum of the American Indian.

In order to help establish a Museum facility of approximately 82,500 square feet, including space shared with the General Services Administration, at the Custom House as provided in the Memorandum of Understanding, the City of New York hereby agrees (i) to fund the design, construction and renovation of the space in the Custom House to be used by the Museum as outlined in the option paper, to the extent of the lesser of eight million dollars ($8,000,000) or an amount equal to one third (1/3) of the cost of such design, construction and renovation and (ii) to treat any and all applications by the Institution for grants to support programs to be conductd by the museum in New York and/or for contracts for services, as though they had been made by a local cultural institution.

The City shall make monies available to the Institution for the purposes set forth above at the same times and subject to the cap described above, in the same amounts as the Federal government shall make funds available to the Institution for said purposes.

You may show this letter to members of Congress in connection with your efforts to obtain Federal support for the project and may advise the persons to whom you show it that they may rely upon these undertakings.