UA-R-GC-1914-01-01-1978-09-12_Page-023

-7- programs the percentage of males would increase. The increase in cost would be small inasmuch as we already have the physical plant and there would not be many increases in direct costs. However the addition of Egyptian students would have to be balanced by the addition of non-Egyptians who pay higher tuition. The University is shifting more of its resources from scholarships, which are given for academic achievements, to financial aid, which is based on need. - Long-Range Finance - The President reviewed what will apparently be AID's position on further Egyptian pound funding and on the Fund. AUC should get LE 10 million in new funds, rather than the LE 28 million we re­quested. AID sees this as the "terminal grant" in pounds. Continued large annual appropriations to subsidize the University's operating deficit are not feasible in AID's view. Any capital needs must be met from the "terminal" pound lump sum rather than from additional grants. As to the Endowment Fund, AID opposes further equity investments. They think the funds should be simply put in the bank and spent to support the University for as long as they last. By the end of this period AID expects the Trustees to have come up with some other way of supporting the University. AID left open the possibility of the Fund's continuing to make loans. These AID views have been strongly contested by Trustees in dis­cussions with AID and State Department officials. We have pressed for a minimum of LE 16 million in new pounds; have pointed out that the Fund cannot be wound down in the immediate future; have said that there are good invest­ment opportunities in Egypt; and have stressed that the Fund should be per­mitted to employ the assets of the endowment in the most productive ways, ... /