UA-R-GC-1914-01-01-1985-10_Page-002

Board of Trustees -2- October 31, 1985 is presented in his October 1985 letter to the Board (see Attachment A) • Dr. Pedersen reported that the Egyptian Government has accepted the LE50 million endowment. There have been no problems and the reaction was much less than expected. As a result of the devaluation of the Egyptian pound, the value of the endowment in dollar terms is $35 million. Public opinion in Egypt, including American, was sharply opposed to the interception of the Egyptian airliner but Americans in Egypt were not adversely affected by this. While Dr. Pedersen saw no political instability in Egypt, he expected that U.S.-Egyptian relations would be formal and cautious in the immediate future. Dr. Pedersen reported that AUC students held an assembly to protest the interception and AUC faculty sent telexes to President Mubarak and Ambassador Veliotes voicing their support of Egypt's position. Dr. Pedersen briefed the Trustees on the various construction projects underway. The quality of incoming students has again shown a substantial increase, though there has been some criticism of admission policies in the local press. Dr. Pedersen reported that efforts are underway to recruit replacements for Dr. Ralph Nelson (Dean of Adult Education), Mr. Mark Linz (AUC Press Director) and Dr. Essam Nasser (CIT Director). 7. Report of the Finance Committee: Mr. Crary. Mr. Crary presented the performance on a total return basis of the Board's three investment managers: McConnell & Miller Inc.: $7.0 million Smith Affiliated Capital Corp: $5.0 million The Common Fund: $3.8 million up 80% since 9/82 up 74% since 9/82 up 72% since 9/82 On the revised October 1985/86 budget, Mr. Crary reported that the budget shows a deficit of $526,000, but since $375,000 is covered from previosly allocated resourses, the real deficit is $151,000. Mr. Crary reported to the Board that in view of the good financial performance in 1984/85, the Chief Financial Officer had recommended, and the Finance Committee had approved, that $700,000 be transferred to Plant Fund (in addition to the $870,000 which will be transferred by standing Board policy); and that, of the $700,000, $400,000 would be designated for unallocated contingencies and $300,000 for renovations and ongoing major construction