UA-R-GC-1914-01-01-1975-10-15_Page-004

I I I -4- States that would serve as an operating base and receiver and disburser of funds for the LE Endowment Fund and the Management Extension Services (MES) program. The creation of such an entity is necessary, Mr. Thorne explained, in order to segregate the educational aspects of the University from the proprietary ones of the Fund and MES. Such an entity would also have tax advantages and would increase the Fund's operating flexibility. The Trustees agreed to the plan and that it should be implemented. 7. Report on the LE Endowment - Mr. Nichols reviewed the situation and reminded the Trustees of the new plan agreed upon with AID whereupon an appropriation for both operational expenses and replenishment of the Endowment would be sought yearly from Congress. This represents a shift from the practice of drawing upon the Endowment to meet operating expenses. As to replenishment, the idea is to rebuild the Endowment from its present level of LE 17 million to its original level of LE 25 million. Mr. Nichols described the two active investments of the Fund, the Travel Agency and the loan to the Kuwait Food Company. He next reviewed six prospective investments including an aluminum extrusion plant, a glass container factory, a craft and technical training enterprise, a bottling and soft drink invest­ment, a real estate development project and a training-related project on behalf of a European oil refinery. Mr. Nichols went on to describe in more detail the propo­sed investment in the 7Up/Canada Dry project. He noted that this investment had been approved by the Partners of the Fund and by th