UA-R-GC-1914-01-01-1965-03-19_Page-024

I I -2- to be said both for and against the incorporation of our project into the larger foundation, but the result of a lot of discussions leads to the judgment that it would be better for the University to have a "trust fund" of its own, if a grant can be secured. It also appears that it would be easier to secure the grant before the bi-national foundation becomes law. Our di lenma is , obviously, that to secure the grant we must have the full backing of State and AID, a boon they are not disposed to offer because of the larger political considera­tions. This dilemma causes us to turn to a proposal that was made by one of the AID lawyers some months ago when this whole problem was under discussion. It is that we seek a long-tenm loan in Egyptian pounds, f~ the Govern­ment through AID, and that we use this loan to establish the Fund. We have since studied the loan possibility, and find that the pertinent data are as follows: The loan would be made from PL 480 monies already in existence in Egypt, under authorization of 104/G (or 104/0) of PL 480. The loan is not a grant and, therefore, no clearance with the appropriations process is necessary; ncr any clearance with Congress required. AID would recommend the loan, which would go through the Bureau of the Budget. The Bureau Is a unit of the executive branch. which is always sensitive to political implications, but might well welcome this as an opportunity to do a small, quiet thing In Egypt1s favor