UA-R-GC-1914-01-01-1977-02-15_Page-006

-6- ment and others and that there had been many changes, and that a memo­randum on the basic elements of the Fund and the other two entities will be provided to the Trustees. AID Audit - Mr. Stone recalled that the AID audit of the Fund took place in the summer of 1976. A rebuttal was prepared and sent to AID which was extensive, well-prepared, and went a long way towards answering the questions raised. This was followed by a request from AID for more information and a second extensive reply was prepared and sent also to members of the Finance Committee and is available for any Trustee who wishes it. Fund Finances - On the pound side, income is exceeding expectations. On the dollar side, expenses are exceeding income and the outlook is less clear, and for this reason dollar contracts are being pursued. Projects - - Arab Aluminum - AAC has come back to the Fund with a request for more pounds for a rolling mill. The Finance Committee believes that it is pre­mature for the Fund to commit at this time. This decision is definitely not due to any criticisms of Arab Aluminum which is doing well, but because the Fund has substantial money out at this time of which none is currently mature. As a result, the Committee recommends that the Fund accept dilution of its stock rather than make an additional commitment. Cairo Beverages - This project requires more capital and the Fund has been approached to contribute more. As in the case of Arab Aluminum, the Committee's recommendation is not to commit and to accept dilution