A:  The important part of the code is line to concatenate the single quotes to the string.  (If it is just a string that is being passed, you don't need the embedded quotes.  That is for a date string.)

In Report Smith, the REP VAR is

Name: tday
Type: DATE
Entry: Type-in

(Note:  The values passed to RS are case sensitive.)

procedure PassVars;
var s: string;
begin
  s := DateToStr(date);
  s := '''' + s + ''''; {This is not needed for regular strings.}
  report1.InitialValues.add('@tday=<'+s+'>');
  report1.run;
end;