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-xiv- It is the policy of the Smithsonian Institution, transmitted through the Board of Regents and the Secretary, to ensure a competitive, rational and fairly administered compensation structure for all Institution positions. This Institution-wide policy certifies that each Smithsonian senior executive should be able to see rationality and equity in his or her compensation package in relation to professional colleagues within the Smithsonian and in appropriately similar positions in comparable museums, academic and research institutions, large non-profit organizations, and corporations. The report recommends that Smithsonian trust fund senior salaries be positioned at a rate equivalent to the 75th percentile of comparable jobs, that careful peer review be required for promotions, and that mechanisms be put in place to provide routine annual cost of living adjustments. These actions would bring existing trust fund senior salaries into rational relationship with each other, with their respective outside arenas, and (with enactment of the proposed legislation) with senior Smithsonian salaries on the Federal rolls. Fiscal year 1990 would be a transition year, during which the salaries of present trust fund senior staff would be recomputed to a 75th percentile base, with full implementation of internal review boards and other policy mechanisms to be achieved by the end of fiscal year 1991. To assure equal treatment throughout the senior ranks, actual salary adjustments for trust funded staff would not be made until the effective date of the legislation benefitting the Federal staff. At the earliest, this would be January 1, 1991. The Institution's overall trust expenditures would then grow by approximately $450,000 for fiscal year 1991, with a full year cost in fiscal year 1992 of $600,000. In discussion, the importance of immediate action was acknowledged by the Board, and the following resolutions were suggested and approved: VOTED that the Board of Regents adopts the proposed policy statement on compensation and authorizes the Secretary to implement adjustments to Trust fund salaries as recommended on or about January 1, 1991. Other recommendations regarding administrative procedures should be implemented as soon as practicable. VOTED that the Board of Regents endorses the provisions of H.R. 3661, legislation sponsored by Messrs. Conte, Whitten, and Mineta to ensure equitable pay for senior Federal staff at the Smithsonian through the establishment of a Smithsonian Senior Service. The Board requests all its Congressional members to support this initiative. [[underline]] EAST COURT CONSTRUCTION FOR THE NATIONAL MUSEUM OF NATURAL HISTORY [[/underline]] At their September meeting, the Regents considered a strategy for renewal of the Natural History Building, involving construction of new space