UA-R-GC-1914-01-01-1979-02-21_Page-006

-3- Arab Aluminum Company, and that the Fund anticipates transferring LE 50,000 to 75,000 to AUC next year. There was a discussion of whether it would be advantageous from a tax standpoint for the Fund to receive new capital in the form of a loan from the Trustees, the University, or AUC, Ltd. 3. Review of the University 77/78 Pound and Dollar Budgets - (summaries attached) LE Budget - The relatively minor cost overruns on the pound side were noted and in summary it vias stated that the pound side of the budget is in a very healthy situation. It was noted that there is a contingency item for transferring 10% of the pound budget into dollars if the Egyptian and American governments agree. If this is done the dollar deficit would be reduced by that amount but, correspondingly, the amount of Egyptian pounds that would otherwise be transferred to plant fund would be reduced. - Dollar Budget - It was noted that the main difficulty on the dollar side is the continuing failure of MES to produce the levels of in come that it formerly did. The additional burden caused by the changes in U.s. tax law is another problem. On the positive side contributions are up significantly, and it is expected that permission will be obtained to convert a portion of our pounds into dollars. If this permission is received and if the additional $500,000 AID grant is obtained the University will end the year with the dollar budget approximately in balance. 4. Faculty Housing - There was a discussion of the critical need for the University to acquire its own faculty housing due to the extraordinary increases in rentals. The sense of the Committee was that the acquisition of faculty housing should be a top priority. President Pedersen said that a cost-effectiveness study on faculty housing is needed and he will present . .. /