UA-R-GC-1914-01-01-1989-11_Page-046

6. New Investments: Vespa Project - Because of potential problems in supply of kits from Piaggio' s Indian associate the Committee decided against any investments at this time. It was agreed that the VEEF might come back to this proposal should conditions permit. Investment in Quoted Securities - While the Committee felt that there is an ele­ment of risk in the purchase of shares, it felt that over the long run these would be good investments. It was noted that analyzing the market would be difficult because there are no indices with which such an analysis could be made. The committee agreed the LE 1 million would be put aside for this investment and that Mr. Hyde would meet with Mr. Maher Fahmy. National Company for Industries - Mr. Snaith described the investment opportuni­ty in a privately held company currently producing aluminum seals and expanding into other "niche" markets such as wooden sticks for frozen confectioneries. Sales up to September 1, 1989 were LE1.8 million of which LE900,OOO was prof­it. The family-held company is in the process of constructing a new plant in Sadat City for this purpose. An investment of LE 1.5 million would purchase one-third of the company. The Committee felt that the investment merited further investi­gation and advised Mr. Snaith that an audit should be made of the company. Hotels - The Committee discussed proposed investments in two hotels, one in Dahab and the other in Quseir, to be operated by Moevenpick Hotels International. The proposed investment would be up to LE3 million (LE1.5 mil­lion in each or LE3 million in one or the other). This would produce a 5 to 10% shareholding. The Committee was in principle favorably disposed to these pro­posals, but decided that further time was required for review of the feasibility studies before any definitive investment decision could be reached. 7. New Bank Account Relationships- The Committee agreed to the proposal to deposit up to LE3 million in each of the following banks: Misr Iran Development Bank and Export Development Bank. 8. There being no further business the meeting was adjourned. 2 (p-C