UA-R-GC-1914-01-01-1978-10-26_Page-012

~12- Dr. Pedersen is studying the idea of increasing the enrollment of AUC to 2,500: 1,500 undergraduates, and 1,000 graduates of whom 500 would be from the U.S. and 500 from the Arab peninsula and Africa. He feels that 2,500 students could be accommodated on the present campus. Dr. Pedersen commented on the recent increases in salaries which were implemented according to previous Board approval. He recalled that the objective was to keep salaries for U.S. faculty members at AUC comparable to the mid-range of salaries in the U.S. Tax legislation passed by Congress affecting the treatment of U.S. taxpayers abroad will seemingly have serious consequences for AUC and its American faculty. It is doubtful that indivi­duals will be able or willing to absorb the resulting additional tax burden. Therefore it is likely that the University will be forced to absorb the impact, estimated at $150,000-$200,000 per year. It will be important for the adminis­tration and the Trustees to try to gain some special relief from Congress. Steps will be taken once t~e new Congress convenes in January. The University exchange rate has been a growing problem. Dr. Pedersen has been having continuing discussions with the faculty and hopes to eliminate the problem by moving to a system where faculty members are paid a certain number of pounds and a certain number of dollars without regard to any exchange rate. In concluding the President asked the help of the Trustees in recruiting additional U.S. students for AUC. 5. Any Other Business - The next meeting of the Board of Trustees was set for February 21, 1979 in Cairo. The President expressed the hope tha