Egypt: Military And Economic Aid (Taken Question)

I may need to refer to this in the future, so into the electronic scrapbook it goes:

Taken Questions Office of the Spokesman Washington, DC July 15, 2004 Question Taken at July 15, 2004 Daily Briefing

Egypt: Military And Economic Aid (Taken Question)

Question: What is U.S. policy on military and economic aid to Egypt? Can you comment on the Secretary's letter to Representative Jim Kolbe [Chairman of the Subcommittee on Foreign Operations, Export Financing and Related programs of the Committee on Appropriations of the House of Representatives]?

Answer: Our policy approach toward Egypt is strategic and focused on advancing U.S. political, economic, and military objectives, justifying our annual assistance program of just under $1.9 billion in FY 2004.

Our bilateral military relations with Egypt are comprised of joint exercises, broad coordination on regional issues, and a $1.3 billion annual military assistance budget. Foreign Military Financing and International Military Education and Training assistance have helped to modernize the Egyptian military through training and weapons sales that have created a sound defensive force. We also maintain open lines of communication with the Egyptian military about the variety of challenges that it faces, from international peacekeeping operations to co-production of certain weapons systems. Virtually all of the 1.3 billion is spent in the United States for US military equipment, which greatly benefits US firms. Additionally, use of US equipment ensures that Egyptian forces are interoperable with ours, allowing us to work closely in joint deployments, as we have in Bosnia and the first Gulf War.

Our bilateral economic relationship, a $571 million dollar budget, is focused on delivering assistance through three main programs: programmatic assistance (including aid projects and technical assistance in health, education and infrastructure); the Commodity Import Program, which funds private sector imports of American products; and the Development Support Program, which provides direct budgetary support to the Government of Egypt in return for achievement of specific agreed-upon economic benchmarks. These programs have helped improve Egypt's basic infrastructure, improve the country's standard of living, and assisted its emerging transition to a more market-oriented economy.

Secretary Powell sent a letter dated July 14 to the Honorable Jim Kolbe, Chairman of the Subcommittee on Foreign Operations, Export Financing and Related programs of the Committee on Appropriations of the House of Representatives. The letter focused on the importance of our annual military assistance budget to Egypt by outlining Egypt's crucial role in our efforts to achieve peace in the Middle East and its contribution to regional stability.