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The secretary pointed out that the question of grants from the National Science Foundation for scientific research had been vigorously defended by Dr. Carmichael in 1963. One important intangible benefit was the certification of approval recognized throughout the community of scientists and important to the individuals concerned as well as the Institution. Although a restriction in a Congressional report against such grants was rescinded sometime after its imposition, the subsequent replacement appropriation was inadequate and is now only 20% of the amount justifiable. Assistant Secretary Challinor pointed out that the 1975 budget of the Smithsonian Astrophysical Observatory was comprised of $3.4 million of federal funds appropriated directly to the Observatory and $7.7 million of funds made available from the National Aeronautics and Space Administration. This typical composition of the SAO budget has prevailed since about 1960 with substantial success.

Mr. Yates was inclined to think that the Subcommittee on Appropriations feels that the Institution should ask Congress for its funds except in an emergency which should be explained in a letter to the Congressional committees. Also he felt that the Congress should be advised when the Institution requested funds from a Federal agency.

The Secretary agreed in principle that the Institution should obtain appropriations for its programs directly from the Congress.