UA-R-GC-1914-01-01-1984-02-22_Page-008

Fund in its investments has been the delays due to the need to secure this approval (normally a failure to disapprove). It was suggested that discussions be held with AID to determine if AID/Cairo could assume the responsibility for approving investments. Any such discussions should be postponed until after Mr. Stone is no longer a partner of the UEEF so as to avoid any possible conflict of interest. c. Report on UEEF investments - ~!~Q ~l~~i~~~ gQ~Q~~Y: A profit of LE500,000 has been reported by Arab Aluminum Company and a dividend of 5% of equity. Mr. Sniath reported that Mr. Kharafi's loan will be turned into equity which will give him effective control of the company. The Committee agreed that if the price per share increases sufficiently as a result of these changes, we should consider selling our shares. g~i!Q ~~y~!~g~!: Mr. Snaith reported on his meetings with Mr. Ahmes Khalifa about which the Committee was informed in Mr. Snaith's February 16th memo. Speaking for Cairo Beverages, Mr. Khalifa proposed the following terms: i. Interest unpaid from October 1981 through January 15, 1983 to be forgiven. ii. The loans to be "rolled over" into one loan of LE 900,000 as of January 15, 1983 with the principal to be repaid in twelve equal semi-annual installments commencing July 15, 1983. iii. Interest to be fixed at 10% per annum (simple, not compound, interest) on the balance of the loan outstanding. Interest related to each capital installment will not become due until the installment itself is due. iv. Each capital and interest installment due to be evidenced by a promissory note. v. The entire loan to be immediately due and payable in the event of any default in payment. vi. In the event that the first eleven installments have been punctually paid the Fund will forgive repayment of LE 50,000 of the last installment together with its related interest. vii. The $15 million of bank credit made available by Sheikh Adham to the Company in 1982 to repay syndicated bank loans will be subordinated to the UEEF's loan. The Committee, with some reluctance, accepted this offer but asked that Mr. Snaith press for compound rather than simple LE Investment Committee -2- February 22, 198