UA-R-GC-1914-01-01-1979-10-25_Page-003

t -3- Program is being seriously considered. The need in Egypt and the area is great. The Trustees support the idea in general. Caution was expressed that AUC not comp'ete with particular programs offered by the national universities. Advice was offered that AUC should pick a small and defined area in which the U.S. excels, such as petroleum engineering. It is estimated that an endowment of 2-3 milli'on dollars will be required to fund an engineering program. 5. Reports of the Committee Chairmen a. Finance Committee - The Chairman of the Committee, Mr. Hedlund, summarized the deliberations of the Committee as outlined in his written report (attached). The highlights of the report were: 1978/79 - There was a slight overall budget surplus (dollars and pounds combined). However, this was achieved by drawing on the round endowment, and by narrowing the dollar deficit by closing Management Extension Services (MES) in Malta. 1979/80 - The picture is better than predicted at the previous meet-ing. Costs are slightly down due to the termination of the MES program, al­though income is down slightly also. A modest surplus is predicted in the over-all budget (dollars and pounds combined). However, this prediction does not take into account the probable loss of the Aramco contribution which was $165,000 last year. H~ stressed that the Trustees will have to greatly accelerate their fund-raising efforts to make up for this loss. Egyptian pound situation is approximately as follows: Endowment invested and loaned by Fund LE 6 million Endowment on deposit in AUC's name LE 4.5 million (Will be drawn this year to meet AUC operating deficit) LE 2.8 million "Pipeline" funds to be released by AID shortly LE 8.75 million New Appropriation for AUC recommended by AID and OMB LE 10 millio