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waiting for the most favorable overall market situation for settlement. We have been advised informally by the counsel to the executors that January of 1977 would represent perhaps the earliest date they would choose for settlement. The IRS, however, may at any time refuse further extensions, thereby forcing settlement under less than optimum conditions.

(3) Mar-a-Lago. We have been advised informally by the Officers of the Post Foundation that should Mar-a-Lago be returned to the ownership of the Foundation by Act of Congress, the Foundation would seriously consider disposing of the property and devoting the proceeds -- some $5 million -- to Hillwood purposes. It is not yet clear, however, whether or when the Congress will decide to abandon Mar-a-Lago. Nor would the addition of these funds to the Hillwood endowment solve our long-term financial problem.

Notwithstanding the uncertainties which will govern the precise amount the Smithsonian would receive to fund its operations at Hillwood, the basic problem which confronts us is simple: the funds the Smithsonian can reasonably expect to receive from these sources will not be sufficient to operate Hillwood in the manner required by the Agreement. Our original estimate of the annual budget necessary for these purposes, as developed almost two years ago, totalled $735,000. By contrast, income from a fully funded Hillwood Trust would be approximately $600,000. The difference between these