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While concern was expressed about the impact on Smithsonian resources of taking opportunities as they are presented, concern was also expressed about adopting a firm policy which would compromise the Smithsonian's ability to consider proposals in years to come.

It was also suggested that, like any large, complex institution, the Smithsonian will inevitably be pulled in varying (and often parochial) directions, especially in increasingly stringent times, and that, with a growing set of campaigns to raise trust funds for the Institution, the Board of Regents needs to have a clearly articulated statement of the principles which will guide the Institution into the future. The Secretary maintained that management has been consistent in adhering to a policy of not assuming responsibility for management of museums outside of Washington, and he welcomed the development of a long-range strategic plan as suggested.

National African American Museum

Mr. Adams noted that the proposed legislation to authorize the establishment of the National African American Museum within the Smithsonian  has been subjected to additional scrutiny in the House of Representatives and its outcome is, as yet, unclear.

The Under Secretary's Transition

Mr. Adams introduced Under Secretary Constance Berry Newman and asked her to comment on her extensive transition effort. Mrs. Newman reported that her transition team found that the Smithsonian had all but one of the elements required for organizational effectiveness, namely the adequate resources to accomplish its objectives. In her view, the lack of adequate resources could require a change in objectives, mandate a different organizational structure, force downsizing of the quality staff, and place a strain on the leadership which will be required to manage change in an abrupt fashion.

Mrs. Newman described the process whereby the Smithsonian is adjusting its resources. She noted that the recent reorganization established necessary reporting relationships and consolidated functions to help the Institution prepare for change. Because of the anticipated shortfalls in the projected Federal and general unrestricted trust funds, the Secretary began working with the staff to frame a rational process for confronting the financial situation in a manner which is coherent and consistent with priorities central to the Institution's mission. Actions to reduce the projected Trust fund deficit include one-time funding reductions, a hiring freeze, travel limitations, and developing additional strategies for increasing income through auxiliary activities and fundraising. Every effort is being made to avoid the less humane alternative of reduction-in-force procedures.

Potential Indemnification of a Smithsonian Scientist

Mr. Adams noted that a respected Smithsonian scientist has become the subject of a South Dakota U.S. Attorney's investigation arising from a private research firm's excavation of a large fossilized skeleton of a dinosaur from land owned by a Native American. The scientist has hired legal counsel; his request for advancement of funds will be reviewed by the Chairman of the Executive Committee before any legal expenses are allocated for this purpose.