Special to WorldTribune.com

WASHINGTON — The United States, amid heavy pressure by Congress, has
warned Egypt that it could lose its $1.3 billion in annual military aid.

Officials said the administration of President Barack Obama has relayed
a series of messages through the Defense Department and State Department
since what was regarded as a second military coup in Cairo on June 14.

The officials said the administration stressed that it would not waive legislation that links U.S. aid to Egyptian democracy, human rights and security cooperation.

“They’re [Egypt] very much involved in settling their own internal house in the last 24 hours, so we’ve been very clear with them privately and publicly what our expectations are, if they’re going to meet their commitments to the Egyptian people,” State Department spokeswoman Victoria Nuland said. “So we need to see them get it right in the coming days.”

In briefings on June 18-19, Ms. Nuland acknowledged that the military regime was warned that U.S. defense and other assistance to Egypt could be suspended. She said the administration was determined to ensure that the regime fulfill its commitment to transfer power to an elected president and parliament in July.

“The decisions that they make in this period are going to be crucial to
the way we can deal with them,” Ms. Nuland said.

In February, the administration waived congressional legislation
that blocked $1.3 billion in annual U.S. military aid. Within days, the
White House, in a move that angered Congress, ordered that the entire
allocation be relayed to Cairo.

Officials said the administration waiver ensured continued production of
F-16 multi-role aircraft and M1A1 main battle tanks for the Egyptian
military. They said a key question would be whether the administration would
approve deliveries of major weapons platforms to Cairo over the next several
months.

Congressional leaders have warned that they would oppose any waiver of
the legislation that blocked U.S. aid to Egypt. They said the military
regime took advantage of the transfer of the $1.3 billion to dissolve
parliament, neuter the presidency and restore martial law.

“I am closely following developments in Egypt. I have made clear to the
State Department that, despite the earlier waiver of the conditions I
authored, I would not want to see the U.S. government write checks for
contracts with Egypt’s military under the present uncertain circumstances,”
Sen. Patrick Leahy, chairman of the Senate Appropriations Subcommittee on
the State Department and Foreign Operations, said June 15.

Ms. Nuland, however, raised the prospect that Washington could still
block the $1.3 billion allocated to Egypt for fiscal 2012, which ends on
Oct. 1. She said the funds were deposited into a Federal Reserve Bank
account meant to pay U.S. contractors.

“When the Egyptians want to pay a bill to a U.S. contractor who has
provided services to the Egyptian military, they submit that bill for
payment from this fund, and then the U.S. side has to also approve the
payment,” Ms. Nuland said on June 19. “So given the fact that there’s at
least 1.3 [billion dollars] in there now, we retain a lot of ability to
manage how this money is spent going forward.”

  $1.3 billion in annual military aid, Sen. Patrick Leahy, transfer of power in Egypt, U.S. warns Egypt it may suspend military aid, Victoria Nuland