The "stigma" is that a program that accepts a lot of FGs is perceived to be of lower quality - not because of the presence of the FGs, per se, but because it was not a good enough program to attract US grads. That perception affects the willingness of future classes of trainees to consider the program. The perception is based in some truth - some FGs have significant language barriers (which is a disqualifier from my standpoint - communication is too important to providing effective care), some go to schools which offer outmoded or inadequate training, etc. But it is also a perception that is in some ways grossly unfair, as I can name good and bad trainees who came from "good" and "bad" schools.

As for the chairman, he is a furriner himself (Syrian), and he understands the stigma well. I think he is doing what he perceives to be the right thing for the program (attracting US grads so that the best of future classes will want to come here), while being a bit insensitive to the effect on the people already here.