UA-R-GC-1914-01-01-1976-10-20_Page-008

, .. ' '. . . h. New health, insurance programs (in progress) i. Reissued credit cards (in progress) j. Revised expense accounts and procedures k. Initial organization structure 1. Legal review of Partnership reorganization m. RAFUND accounts established The following required significant time: a. AID audit b. AID audit responses c. Arthur Andersen audit '6. Review of present programs The review of the present investment programs exposed three potent i a 1 pro b 1 ems. These wi 11 be presented ' at the end of ,. this section. The following is a brief statement on each project. a. Kuwait Food Company There have been no significant events with respect to this investment and the Kuwait Food Company and Mr. Kharafi are still regarded ~~ the best clients the Fund has. Interest on their loan has been paid on schedule. b. Arab Aluminum Company .There have been no significant events with respect to this project which is in the start-up phase, unless one is to consider the fact that they" are on schedule. Given the difficulties of their undertaking, this is significant. Their requirements for local currency have not materialized as quickly as they had originally anticipated, which has resulted in their not drawing down on the Fund's loan as scheduled. The first amount of LE 200,000 was scheduled for October 1 and has not yet taken place. All indications are that this is an encouraging sign for Arab Aluminum but it will result in a lowering of projected interest income for the Fund. All major equipment has been ordered and the plant is under construction. Mr. Nichols agrees with the Fund's and irustees' decision to replace him as the Fun