The chairman's report to the Inter-University Council for Higher Education Overseas covers financial outlays, expenditure cuts and program assistance ventures conducted with British government approval to educationally impoverished areas in Africa, the Caribbean, the Far East and other locales during 1978-79. The chairman argues that the IUC's methods of operation have resulted in the provision of educational aid more effective, more welcome overseas, more productive of long-term multiplier effects and far cheaper in terms of public money and official manpower than the quite different technical co-operation programs conducted for the benefit of the same institutions through government to government channels. Substantial budget cuts forced the IUC to make substantial staff cuts to save as many overseas aid commitments as possible. Divisional reports concentrate on West Africa, East and Central Africa, and the Caribbean, Far East and other areas. Each divisional report describes conditions in funded countries, and gives additional information on local recruitment, links, staff development, equipment and capital grants, books and visits donated during 1978-79. Appendices include a membership roster, a list of associated overseas universities and a series of financial tables documenting 1978-79 capital expenditures and outlays. (DC)