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A major advantage of aehlsving recognition aD an SF~A'is the statistical tabula- tio~ that are available for such areas (see Appendix l-E, p. 353 of the encl~ure). In addition, the convenience and availability of statistical infor- mation about SMSA's has led to many nonstatistical uses of the definitions. They are widely used by the business community for marketing and advertising purples. Also, from time to time, the Congress and Federal Departments and agencies have used the S~A in funding programs, though this uae is discouraged by this office, except in cases where the SMSA is directly relevant to program purp~eso ~estions concerning the effect on funding of a single versus a com- bined area should be directed to the appropriate funding agencies. For your reference, I am also enclosing a report on the uses of SMSA's which was prepared by my office. The Federal Committee on SMSA's will be meeting on October 15 to begin discussion of the implementation of the standards for purposes of the 1980 cen- sus tabulatio~ and publications. The Bureau of the Census has asked the Committee to act as expediently as possible so that the new SMSA's can be recognized without delaying the issuance of 1980 census data. It would be help- ful if I could have at least your initia~ response to the question of combining the areas before that date. Informal contact has already been made with Bill McEwe~ concerning ~his issue. If you have any questions concerning this matter, please contact Suzann K. Evinger of my staff. She can be reached on 202/673-7965. Sincerely, /~9S]~F~ W. DUNCAN Director //