UA-R-GC-1914-01-01-1979-02-21_Page-025

-2- viewed by ASHA as a "terminal grant". ASHA foresees no further large annual operating grants to the Unive;sity, nor any grace period while the Fund builds up investment income. Moreover, any capital expenditures (e.g. housing, dorms) will have to be drawn from the lump sum given. This position was deemed unacceptable. Hence a meeting with AID was arranged. Messrs. Stone, Ferguson (of MEFCA) and O'Connor met on February 2nd in Washington with the Executive Secretary of AID, Verne Newton, David Santos, Director of ASHA, and AID auditor, James Galivan. Mr. Stone argued strongly that AID should increase its recommendation as to the amount of new pounds and that at a minimum we should receive one-half of the pounds remain­ing after the Embassy's needs are met. The AID officials pointed out that the total remaining is $90 million worth of pounds and not LE 90 million as had been understood. They stressed that the total claims far exceeded the amount available. Mr. Stone explained that it is not feasible to shut down the Fund in the immediate future because of its outstanding investments and commitments. He stressed that the Fund should be permitted to continue its investment and loan activities as there are opportunities in Cairo to earn returns in excess of interest on bank deposits. Mr. Ferguson said that MEFCA's business in Egypt is increasing and arrival of major companies seeking to make investments is growing into a steady stream and several have expressed an interest in Fund participation. The AID officials acknowledged that the voice of Ambassador Eilts is by far the most important in determining the distribution of remaining Egyptian pounds. . .. /