NOTE: IF THIS DOESN'T MAKE YOU WANT TO
VOTE FOR MITT ROMNEY & SEND THIS ISLAM LOVING IDIOT OBAMA PACKING THEN
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U.S. Move to Give Egypt $450 Million in Aid Meets
Resistance
By STEVEN LEE MYERS
Published: September 28, 2012
The Obama administration notified Congress on Friday
that it would provide Egypt’s
new government an emergency cash infusion of $450 million, but the aid
immediately encountered resistance from a prominent lawmaker wary of foreign aid
and Egypt’s new course under the leadership of the Muslim Brotherhood.
The aid is part of the $1 billion in assistance that
the Obama administration has pledged to Egypt to bolster its transition to
democracy after the overthrow last year of the former president, Hosni
Mubarak. Its fate, however, was clouded by concerns over the new
government’s policies and, more recently, the protests that damaged the American
Embassy in Cairo.
The United States Agency for International Development
notified Congress of the cash infusion on Friday morning during the pre-election
recess, promptly igniting a smoldering debate over foreign aid and the
administration’s handling of crises in the Islamic world.
An influential Republican lawmaker, Representative Kay
Granger of Texas, immediately announced that she would use her position as
chairwoman of the House appropriations subcommittee overseeing foreign aid to
block the distribution of the money. She said the American relationship with
Egypt “has never been under more scrutiny” than it is in the wake of the
election of President Mohamed Morsi, a former leader of the Muslim Brotherhood.
“I am not convinced of the urgent
need for this assistance and I cannot support it at this time,” Ms. Granger said
in a statement that her office issued even before the administration announced
the package.
Secretary of State Hillary
Rodham Clinton, speaking at a meeting of the Group of 8 nations in New York,
said on Friday that the world needed to do more to support the governments that
have emerged from the Arab Spring uprisings, including those in Egypt, Libya and
Tunisia.
“The recent riots and protests throughout the region
have brought the challenge of transition into sharp relief,” Mrs. Clinton said,
without mentioning the assistance to Egypt specifically. “Extremists are clearly
determined to hijack these wars and revolutions to further their agendas and
ideology, so our partnership must empower those who would see their nations
emerge as true democracies.”
The debate comes as the issue of foreign aid in
general made an unexpected appearance in the presidential campaign.
In a speech in New York on Tuesday, Mr. Obama’s
Republican challenger, Mitt Romney, called for revamping assistance to focus
more on investments in the private sector than on direct aid — a shift
administration officials have said is under way.
While Mr. Romney did not address aid to Egypt
directly, he cited Mr. Morsi’s membership in the Muslim Brotherhood as one of
the alarming developments in the Middle East, along with the war in Syria,
Iran’s pursuit of nuclear weapons and the killing of the American ambassador to
Libya.
“A temporary aid package can jolt an economy,” he
said. “It can fund some projects. It can pay some bills. It can employ some
people some of the time. But it can’t sustain an economy — not for long. It
can’t pull the whole cart, because at some point the money runs out.”
The $1 billion in aid, announced by Mr. Obama in May
2011, was initially intended to relieve Egypt’s debts to the United States,
though negotiations stalled during the country’s turbulent transition from
military rule to the election of Mr. Morsi this summer.
In recent weeks, negotiations over the assistance
picked up pace, and the administration decided to provide $450 million instead,
including $190 million immediately, because the country’s economic crisis has
become acute, with an estimated budget shortfall of $12 billion.
The assistance outlined in letters to Congress on
Friday would be contingent on Egypt’s setting in motion economic and budgetary
changes that the International Monetary Fund is now negotiating as part of a
$4.8 billion loan.
The administration has also thrown its support behind
that loan, and officials said they hoped it would be completed before the end of
the year. A $260 million infusion would come when the much larger loan is
completed, according to officials familiar with the package. By law, all
assistance to Egypt is contingent on the country’s meeting certain requirements,
including adherence to basic democratic values and the Camp David peace treaty
with Israel.
The protests over an anti-Muslim video and the
storming of the American Embassy in Cairo on Sept. 11 came even as senior White
House and State Department officials led a large business delegation to promote
economic assistance and trade in Egypt.
Mr. Morsi’s slow response to the protests raised
concerns in Washington, although administration officials later cited improved
cooperation over the embassy’s security.
The $1 billion in assistance has been cobbled together
from funds already appropriated by Congress, but the administration is required
to notify lawmakers of its intention to release any of the funds. Ms. Granger
presumably can put a hold on that release and pursue legislation to reverse the
appropriation.
Mrs. Clinton lobbied lawmakers last week during
closed-door briefings that focused on the tumult across the region, including
the attack at the American diplomatic mission in Libya that killed Ambassador J.
Christopher Stevens and three other Americans.
In addition to the $1 billion in assistance, the
administration is working with Egypt to provide $375 million in financing and
loan guarantees for American financiers who invest in Egypt and a $60 million
investment fund for Egyptian businesses. All of that comes on top of $1.3
billion in military aid that the United States provides Egypt each year.
A senior State Department official said that the
administration would consult with members of Congress in the days ahead “to make
the case that this budget support is firmly in U.S. interests in seeing peace,
stability and democracy in Egypt and the wider neighborhood.”
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