UA-R-GC-1914-01-01-1978-09-12_Page-031

-15- deposit in the University's name. In addition to having drawn approximately LE 15 million from the LE endowment principal to cover its operating deficits, the University has drawn LE 240,000 interest on such principal. As yet the Fund has not turned over to the University any earnings from its investments. However last year LE 200,000 of such earnings were available and could have been turned over, but a decision was made to invest these monies in ongoing projects rather than to suffer a dilution of the Fund's participation. Had it not been for the freeze on Fund's activities such additional investments would have been made out of capital and not operating cash, and the LE 200,000 could have been turned over to AUC. As to the audit by Arthur Andersen & Company of the Fund it was noted that this year there is no "blue-back" and that the single comment by the auditors was that all of the recommendations they made last year have been implemented. All loans are current as to both principal and interest and income is as budgeted while expenses are lower than the budget. All of this, Mr. Stone said, is a tribute to the excellent management of Andrew Snaith. Mr. Stone summarized the five current investments of the Fund: Cairo Beverages - While this is turning out to be the Fund's best invest­ment, operations are expanding and the company is raising an unprecedented loan of LE 17 million for expansion. We passed up the opportunity to sub­scribe to an additional LE 20,000 in shares and this block was sold to another buyer for LE 50,000, an illustration of why the Fund should be in equity investments. Kuwait Food Company - This investment is satisfactory with the loans being current . The Fund is presently considering renegotiating the loans to gain ... /1