The report, dated June 17 and authored by Jeremy Sharp, cited the annual
U.S. military assistance to Egypt of $1.3 billion, making the Arab state the
second largest recipient after Israel. For fiscal 2012, the administration
of President Barack Obama has requested $1.55 billion in Foreign Military
Financing as well as civilian aid for Cairo.
"FMF aid to Egypt is divided into three general categories: 1]
acquisitions, 2] upgrades to existing equipment, and 3] follow-on
support/maintenance contracts," the report said.
Sharp did not raise the prospect that Washington would significantly
revise U.S. aid to Egypt. The report cited Egyptian concerns of a drop in
the value of military aid as well as administration proposals to increase
civilian aid, particularly to promote democracy.
"Egyptian military officials have repeatedly sought additional FMF funds
to offset the escalating costs of follow-on support," the report said. "They
point out that as costs rise, static aid appropriations amount to a
reduction in net assistance."
A major U.S. military program in Egypt was the co-production of 1,200
M1A1 Abrams main battle tanks. The report said U.S. aid to Egypt could
comprise up to 80 percent of its military procurement budget.
CRS said Egypt faced an increasing insurgency threat in the Sinai
Peninsula. The report cited a series of attacks on the Arab Gas Pipeline,
supplies neighboring Israel and Jordan.
"In addition to smuggling weapons, Bedouin Arabs in the Sinai Peninsula
also are believed to be behind several acts of sabotage to a gas pipeline
running from Egypt to Israel and Jordan," the report said.