December 5, 2001	atimes.com

Front Egypt reaps the benefits, again By Cam McGrath CAIRO - Recent economic and military aid deals suggest that the United States is rewarding Egypt generously for its support in the war on terrorism and the ongoing military campaign in Afghanistan. Ten years ago, when the Egyptian economy was in shambles, the United States and other lenders forgave US$14 billion of Egypt's debt as a reward for its support during the 1991 Gulf War. New aid packages this past month hint that Washington is applying a similar aid-for-support strategy. October was a difficult month for Egypt. It's economy had already suffered from a three-year economic slowdown when the September 11 terrorist attacks on the United States struck a heavy blow to tourism, the country's leading foreign revenue sector. While Egypt braced for economic turmoil, the United States pressured its government to crack down on Muslim fundamentalists at home and publicly back Washington's war on terrorism. It did. November was pay-back time, with the Bush administration offering rewards to Egypt for its success in rallying Arab support, or at least muting dissent, towards the US military campaign in Afghanistan. First came word that the US would consider a long-awaited free trade agreement with Egypt. In the weeks that followed, US officials disclosed plans to provide $90 million in USAID economic support, expedite larger economic aid packages and boost Egypt's military capacity. The new offers come in addition to the $2 billion the United States provides each year as a reward for Egypt becoming the first Arab state to make peace with Israel and its ongoing role as a broker for a broader Middle East settlement. On November 2, US State Department spokesperson Richard Boucher announced that the Bush administration was prepared to help Egypt overcome its economic crisis, possibly via a free trade agreement. "The United States recognizes the importance of the economic impact on Egypt of the war against terrorism, a struggle in which the government of Egypt is a strategic partner to the United States," he said. The statement also highlighted the "possibility of initiating discussions on the elements of a potential US-Egypt Free Trade Agreement". The complex phrasing hints at the administration's reluctance to offer a commercial accord that phases out tariffs between the two signatories, especially as the balance of trade is five to one in Washington's favor. Tangible economic assistance offers soon followed, including a pledge by US Ambassador to Egypt, David Welch, on November 19 to immediately disburse nearly $100 million through USAID programs to support Egypt's state budget. The announcement coincided with US Secretary of State Colin Powell's keynote speech on Washington's vision of a comprehensive peace in the Middle East. The speech was hailed in Egypt as a positive step towards solving the Arab-Israeli conflict. "The Powell proposal, as a whole, marks an important turning point in Washington's attitudes towards the peace process, in that it offers something that can be built upon, but only if it can be put into effect," Ibrahim Nafie, editor-in-chief of state-run Al-Ahram paper remarked. Just one week later, news surfaced of a classified memo to the US Congress indicating that the Bush administration planned to provide Egypt with 53 sophisticated Harpoon Block II surface-to-surface missiles and four patrol boats on which to base them. The $400 million deal could threaten Israel's military edge over its neighbors and marks a departure from conventional "benign" military transfers to Arab states on Israel's doorstep. A State Department official who confirmed the plan would not say whether the controversial arms deal was a reward for Egypt's continued support of US military action, but many believe it is. The Bush administration added icing to the cake when on November 29 it affirmed that it would expedite new cooperation programs to help shore up Egypt's economy, particularly its battered tourism industry. "We are looking at ways that we can accelerate some of our economic cooperation and other programs," Powell told reporters following talks in Washington with Egyptian foreign minister Ahmed Maher. "We want to be as responsive as we can." (Inter Press Service)

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