UA-R-GC-1914-01-01-1978-09-12_Page-034

-18- As to the Mobil Oil loan, all future interest has been forgiven and LE 300,000 of principal remains. It is the intention to amortize this over three years. In addition the University will receive LE 50,000 from Mobil for services. The University has accumulated surpluses of $500,000 and LE 500,000. In summary, the short-range budget picture was described as reasonably comfortable. The dollar problem was described as owing largely to the MES problems which will recoup in time, it is hoped. The long-range financial picture, said Mr. Hedlund, is presently under consideration in Washington. While it seems we will get substantially . less than we requested, there is not cause for alarm in the short run. We requested LE 28 million from AID out of the blocked Egyptian pounds which are being distributed. There is much competition for the funds and it appears that we will receive more like LE 10 million in new pounds plus LE 8.65 million in the AID "pipeline" - i.e. monies already aprropriated and authorized but not disbursed. If we got only the LE 10 million and put it in the bank at 10% interest this would carry the University for 6 to 8 years. However the Trustees intend to make a strong case with AID and the Sate Department that the LE 10 million should be increased to 14-16.5 million, that the endowment/investment principle should be kept alive, and that the Fund in this way will be able to cover one-half of the University's deficit and that AID should cover the remaining half. It is on the subject of continuing annual appropriations that AID's present position is most bothersome, Mr. Hedlund said. AID believes that large continuing operating grants are not feasible. However the Trustees ... /1