WASHINGTON Ñ Egypt's intermediate-range missile program is said to be stuck in its critical second phase.

U.S. defense sources who are monitoring the program said Cairo is being blocked by the United States from obtaining key components and engines required to develop a missile based on North Korea's No-Dong. The sources said the Washington has pressured Egypt to suspend plans to import 50 engines from Pyongyang needed for the first series of missiles.

The Egyptian-North Korean missile cooperation is said to have topped the agenda of talks by a visiting Egyptian Defense Ministry delegation with key members of the House and Senate last week. The delegation spent three days in Washington in an effort to persuade Congress that Egypt has abandoned any plans to produce a No-Dong variant.

The second phase Ñ planned for conclusion this year Ñ was said to have included production of tubes and guidance systems as well as additional North Korean engines. The third phase was to have assembled the missile and produce the engine.

Egypt has been stuck in the second phase with the halt in the North Korean missile delivery. The sources said Egypt has also failed to develop technologies required for the missile. They said that Cairo has turned to French and German companies for such components as guidance systems.

Several members of Congress are calling for a reduction of $100 million in U.S. military aid to Cairo. Under the latest proposal, the reduction in military aid would be transferred to Egypt's civilian aid package. Egypt receives $1.3 billion in military aid and about $655 million in civilian aid.

The Egyptian-North Korean cooperation has also been the subject of a debate between Congress and the Bush administration. Pentagon and State Department officials have acknowledged the cooperation but insist that Egypt is far from completing a No-Dong variant.

But congressional defense sources disagree. They said that in November Egypt completed the first stage of the intermediate-range missile program. That consisted of the production of 10 missiles and the delivery of North Korean engines.

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