Gund Professor of Economics and Business Richard E. Caves presented several recommendations to the Faculty Council yesterday to restructure the organization of the Government and Economics departments.

The report, prepared by a social science planning committee in view of the upcoming capital campaign, was discussed just minutes after Dean of the Faculty Jeremy R. Knowles presented the council with the first draft of a document outlining the main goals and provisions of the campaign.

The document, which will be presented in draft form for approval by the full Faculty, is the first official report to explain why Harvard needs a campaign, according to Secretary to the Faculty Council John B. Fox '59. The campaign, with an expected target of about &2 billion, will be officially launched May 13.

The Caves committee report, prepared during the last year, suggests incorporating the entire undergraduate and graduate Government departments into Coolidge Hall and into a new building to be constructed on Cambridge Street, said Director of Planning and FAS senior development officer Philip J. Parsons.

The Littauer building--which now contains both the Government and Economics department offices--will remain solely for economics, said Parsons.

The new building on Cambridge Street will provide more class space, including more amphitheater-style classrooms like those at the Business and Kennedy schools, Parsons said.

And both Coolidge and Littauer will undergorenovations to add new offices and update heatingsystems, among other improvements.

Divisions

Although the restructuring of the Governmentand Economics departments was prompted by thepresent shortage of space, the proposed changesalso reflect the intellectual necessity ofintegrating departments that now stand divided.

"Bringing various parts of the GovernmentDepartment together and having more space forresearch in the Economics Department strengthensthe sense of the intellectual community," Parsonssaid.

The proposed move of the Government Departmentto the neighborhood of Harvard's areacenters--such as the Fairbanks Center for Japaneseand Chinese studies, the Russian Research Centerand the Center for Latin American and Iberianstudies--will complement both undergraduate andgraduate studies, Parsons said.

But the extent to which the proposed changeswill be implemented are subject to the resourcesgenerated by the campaign.

"We don't know how much the campaign willgenerate," said Caves. "Resources are alwaysscarce...it will depend on the outcome of thecampaign.