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In response to a question about the Sasakawa Foundation request, Mr. Merchant said these funds were being offered for scholarships intended to improve international understanding. A site visit to AUC has been conducted, and hopes are high due to good feedback from our contact with the Foundation. Cairo University is also being considered for the $1 million scholarship, however, and there may be political considerations involved. A similiar grant was awarded to the Oregon State University system, Mr. Merchant added; thus far, the only grant in the Middle East has gone to an Israeli university. A key figure in AUC's approach to the Sasakawa Foundation is a Japanese graduate of AUC, Mr. Abe, who has done much lobbying on AUC's behalf, and whose help has been essential to our success so far. He also led the EGSF campaign last year among Japanese companies, and convinced eight companies to give $5,000 each. Mr. Hinds offered to have AT&T staff in Tokyo investigate contributions possibilities for AUC there. Mr. Hight suggested we make contact with the new Japanese ambassador in Cairo, a fast-track diplomat who had previously served in Los Angeles, Mr. Inata. He is very aware of the need to improve Japan's image through corporate giving, and has also worked with the New York City Partnership with Japan organization. Dr. Vandiver added that the Indian ambassador to Egypt in Cairo had expressed his desire to help AUC. Mr. Merchant observed that alumni support of their alma maters is hot a tradition in Egypt, and the result is lower levels of giving. Egypt is a "cash society" where people frequently do not write checks, so the usual approach of direct mail doesn't work very well there for AUC. Dr. Hebeka added that the local perception is that AUC is a rich institution, and doesn't really need graduates' contributions. 4. Mr. Merchant also presented a report on research and sponsored projects and grants received by AUC from government and foundations. In the past, Mr. Merchant explained, only philanthropic contributions had been presented to the Committee. This does not show the significant support from grants and government contracts received by AUC. Next year he hopes that the University will have software that will allow both types of support to be combined in one financial report. When asked about overhead received through the grants, Mr. Merchant said this varies from grant to grant, but generally AUC does not receive as much overhead as it should. The provisional USAID rate is now 110%, but the University has received so little that the IRS decided not to audit the overhead. Concern was expressed by several Trustees over AUC's "embarrassingly beautiful" new buildings: perhaps the visual luxury of other new projects should be scaled back to counteract the image of AUC's "richness." Dr. Vandiver noted that often funds were restricted only to certain projects, such as the Zamalek Hostel; yet general funds were also necessary to complete such buildings. 5. The External Affairs retreat in Ismailia after the February Board meeting was very helpful, Mr. Merchant reported. The main purposes of the retreat were to bring all external affairs staff together to discuss important issues of communications and fundraising and to address the need for strategic planning. It is important to communicate what each department is doing, and to be able to plan jointly and in-depth for activities of this year and next year. Dr. Vandiver expressed his support for the retreat, and also recommended that strong consideration be given to holding a celebration of AUC's 75th anniversary. 6. The meeting was adjourned at 10:05 a.m. Monday, July 27, 199