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Mr. Hedlund thanked the Trustees for their participation in the financial affairs of the University. The Chairman, Mr. Thorne, on behalf of the Board expressed his gratitude to Mr. Hedlund for his grand job in over­seeing the University's finances, and the Trustees passed a formal vote of thanks to Mr. Hedlund. Mr. Crary reported on the question of how the tax reform act might affect the University. Mr. Crary noted that his firm, Curtis, Mallet­Prevost, Colt & Mosle, had issued an opinion to the effect that AUC would be justified in not conSidering housing supplied to American staff members as being taxable income for withholding tax purposes. His firm did advise however that home leave should be reported on the W-2 forms as income. Free tuition to AUC and tuition subsidies to the local American high school need not be reported as income according to his firm's recommendations, Mr. Crary said. On another subject, the question was raised as to whether there had been any action on transferring ten percent of the gifts received by the University to endowment. The response was that the transfers were not to be made as the gifts are received but that ten percent of the total received for each year was to be transferred at the end of the year. 5. Report of the Development Committee - Mr. Devine It was reported that the special showing of the Tutantkhamun exhibit in Chicago in honor of AUC and the receptions for local businessmen and civic leaders were very successful. Two thousand one hundred persons attended the special showing at the Field Museum and there were two luncheons and one dinner. Chairman Thorne, President Byrd and Vice President Allam amon