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earliest days the Institution had fostered a tradition of providing modest grants-in-aid for scientific research. It was generally agreed that the application of surplus foreign currencies to this program is a most appropriate method of financing an essential activity. 

Senator Saltonstall congratulated the Secretary on his successful budgetary presentation and on obtaining the full appropriation requested from Congress during the past session.

Opposition to Bureau of the Budget proposal for use of Private Funds

The Director of the Bureau of the Budget, Kermit Gordon, wrote the Secretary on August 7, 1964:

"There appears to be sufficient flexibility in the budget of the trust funds of the Institution to cover the cost of the wage board salary increases which create the projected deficiency (in the "Salaries and Expenses" appropriation). Therefore, I ask that you propose to the Board of Regents, at its next meeting, that this and similar unanticipated needs of the Institution be considered contingencies such as those for which trust funds have been set aside."

After general discussion of the undersirability of establishing any precedent of using the limited private funds of the Institution to finance unexpected deficiencies in the appropriated funds of the Institution, such as arises as the result of general wage and pay increases, on motion by Senator Saltonstall, it was

VOTED that the Board of Regents does not approve the use of the trust funds of the Institution to cover the cost of wage board salaries increases or other unanticipated needs of the Institution which create a projected deficiency in the "Salaries and Expenses" appropriation. The Board further directed that a carefully considered letter, such as that outlined in the working papers for the meeting, be sent to the Budget Director.