UA-R-GC-1914-01-01-1967-04-25_Page-004

I I - 4 - helped clear the project. These offices, however, insisted on the establish­ment of provisions which would prevent immediate dissipation of the funds. Mr. Barco and Mr. Christie had worked out wording to satisfy this point which did not allow spending for current operations more than 10 per cent of the original capital sum in one year. If the University needed more principal than this in anyone year for operations (as opposed to investment), approval of the U. S. Government would be required. About six weeks ago, we moved into a very crucial period with develop­ments moving more rapidly. Around the first of March, we had written a letter to Mr. Christie saying that Or. Bartlett would be in the U. S. for a trustees meeting in early May, and he would like to meet with AID and State Department officials before he returned to Cairo. A few days later we had received a cable from Cairo informing us that due to difficulties in connection with the Pyramid Road land, the university'S financial situation in pounds would become critical, that is, all cash resources would be spent in May, sometime. We learned subsequently that a judgment had been obtained under which the University had to put in escrow LE 230,000 against the possible repurchase of the Pyramid Road property. As a result of this judgment our bank accounts had been attached. Upon receipt of this cable from Or. Bartlett, we asked for a meeting of AID and State Department officials, which took place within the hour. We acquainted them with the latest development and the implications it had for our overall financial situation, and in fact for our very existence. The AID and State Department officials were confident that the better pound rate on this yearts grant would become available to us. But, aside from the pound fund they had no other souree~ £rom which there ~3 any likQlthood o