Dear

to keen you informed

  
 
  

Luring the last several months
reparding major ciwitdes., ALL of us have
been concerned } tes on the Tederal budget
and the concomitant need to re: LE @xnG huyes wherever possible.
ft hag becowe iner would continue te feel
the effects of exne: vould soon need to

make azopropriate addust Levels | of prank atards, Te has

 

plaeed

 
 
  
  
   
 
   
   

now become necessary for us eeleetive reductions in allowable
expenditures for both EY "72 "726

 

secordingly, as

tea your PFreeram will be reduced for the
vyemainder of the fiscal yoa 5

roby 25 percent. tn the following year the
reduction will veach a total of anorexdimately 59 percent of the amount
currently cuthorizged. These cuts cover both direct and indirect ecests
to be applied in the manner vou deem most adyantareous. We fully ree=
opnige the probleme this will ercate for you and prefer, therefore, to
give you the opportunity to becin uow to prepare for the full effect of
hoth years’ reductions.

  

q

ak

 

For all of us this is an obviously urgent matter. IT have asked the
chiefs of RMPS* Grants Management and Regional Development Branches to
communicate with you in the next several days to provide any ansistance
you may need.

Iam sure you realize my personal disappointment in having to take this
action. I remain hichly optimistic for the long-term prospects of the
Regional Medical Programa but cannot offer hope for irmediate financial
relief. Your task has never been easy, but I am confident that you will

do your best to maintain efforts even in these more demanding circumstances.

Sincerely yours,

Harold Hargpulies, M.D.
Acting Director