Egypt: Background and U.S. Relations
Jeremy M. Sharp
Specialist in Middle Eastern Affairs
February 26, 2013June 5, 2014
Congressional Research Service
7-5700
www.crs.gov
RL33003
CRS Report for Congress
Prepared for Members and Committees of Congress
Egypt: Background and U.S. Relations
Summary
This report provides a briefan overview of the key issues for Congress related to Egypt and
information information
on U.S. foreign aid to Egypt.
The United States has provided significant military and
economic assistance to Egypt since the
late 1970s. U.S. policy makers have routinely justified aid
to Egypt as an investment in regional
stability, built primarily on long-running military
cooperationcooperation with the Egyptian military and on sustaining
the March 1979 Egyptian-Israeli peace treaty. Successive U.S.
Administrations have viewedpublicly
characterized Egypt’s government as generally influencing developments in the
Middle East in
line with U.S. interests.
U.S. policy makers are now grappling withdebating complex
questions about the future of U.S.-Egypt relations,
and these debates and events in Egypt are
shaping consideration of appropriations and authorization legislation in the 113th Congress.
For Obama Administration officials and the U.S. military, there is a clear desire to engage
Egyptian President Muhammad Morsi’s new government on a host of issues, including immediate
economic support and Sinai security. For others, opportunities for renewed diplomacy may be
overshadowed by disruptive political trends that have been unleashed by the so-called Arab
awakening and allowed for more expression of anti-Americanism, radical Islamist politics,
antipathy toward Israel, and sectarianism, among others.
For FY2013, President Obama is requesting $1.55 billion in total bilateral aid to Egypt ($1.3
billion in military aid and $250 million in economic aid). The aid levels requested are unchanged
from FY2012 appropriations. Under the Continuing Appropriations Resolution, FY2013
(H.J.Res. 117, P.L. 112-175), approved by Congress in September 2012, regular aid accounts
(ESF, FMF, etc.) are funded at the same level as in FY2012 (P.L. 112-74) plus .612%. Conditions
placed on appropriations in the FY2012 bill apply to FY2013 CR funds unless otherwise noted
authorization legislation in the 113th Congress.
Between 1948 and 2014, the United States provided Egypt with $74.65 billion in bilateral foreign
aid (calculated in historical dollars—not adjusted for inflation), including $1.3 billion a year in
military aid from 1987 to the present. The FY2014 Consolidated Appropriations Act (P.L. 113-76)
provides up to $1.3 billion in military aid to Egypt and up to $250 million in economic aid. This
report discusses the conditions governing the release of these funds. All U.S. foreign aid to Egypt
(or any foreign recipient) is subject to the approval of Congress. All U.S. military aid to Egypt
finances the procurement of weapons systems and services from U.S. defense contractors.
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Egypt: Background and U.S. Relations
Contents
Overview.......................................................................................................................................... 1
Political Outlook ..........................Recent U.S. Policy toward Egypt .................................................................................................... 2
Economy .....................................................1
Domestic Politics: The Transition Continues ..................................................................................... 4
Egypt and the International Monetary Fund .............................................................................. 4
Relations with Israel ........................................................................................................................ 5
U.S.-Egyptian Relations .................................. 4
The Crackdown against the Muslim Brotherhood and non-Islamist Groups ............................ 5
Internal Violence and Conflict in the Sinai................................................................................ 6
U.S. Foreign Aid to EgyptThe Economy ......................................................................................................... 7
Military Aid .................................... 9
Foreign Relations ..................................................................................... 8
Economic Aid .................................................................................................................... 10
U.S. Foreign AidAssistance to Egypt since the February 2011 Revolution and the FY2014 Appropriations Act ........................................ 12
Recent Legislation ....11
Figures
Figure 1. Egypt at a Glance ..................................................................................................................... 14
The Consolidated Appropriations Act, FY2012 ...................................................................... 14
FY2013 State and Foreign Operations Appropriations Bills ................................................... 15
Legislation in the 113th Congress ................... 3
Figure 2. Recent Pew Public Opinion Survey in Egypt ......................................................................... 16
Figures 6
Figure 1. Map of Egypt ..........................................................................4. Egypt’s Real GDP Growth .......................................... 6
Tables
Table 1. U.S. Assistance to Egypt, FY2010-FY2013 Request......................................................... 9
Table 2. Top 10 recipients of U.S. Foreign Assistance, FY2012 and FY2013 Req. ...................... 17
Table 3Figure 5. U.S. Foreign Assistance to Egypt.. ................................................................................... 1814
Tables
Table 41. U.S. Foreign Assistance to Egypt, 1946-1997 ................................................................. 1915
Contacts
Author Contact Information........................................................................................................... 22
Congressional Research Service
Egypt: Background and U.S. Relations
Overview
Two years after the resignation of former President Hosni Mubarak, Egypt is fraught with a
polarized political culture and a contracting economy that, if not stabilized, could spark greater
public unrest. The Muslim Brotherhood and the military are the two dominant actors, with the
former gradually consolidating power in all branches of government and the latter retaining a large
measure of control over national security and some foreign policy decision-making.1 Although
President Muhammad Morsi may perceive his growing control over the state2 as necessary for
stability, his opponents perceive a power grab, as the Morsi Administration has faced a recent public
backlash from urban middle class residents in Cairo3 and citizens of the canal cities of Port Said,
Ismailia, and Suez.4
Egyptians are divided on questions pertaining to the role of religion in public life and the degree of
state involvement in the economy, among other issues. Generally speaking, voters identify with
various movements, including the Muslim Brotherhood, Salafist parties, former members of the
previous ruling and now-outlawed National Democratic Party (NDP), Leftists (or Nasserists), and
1
This arrangement was formalized in President Morsi’s August 2012 constitutional declaration, which was issued after
Sinai-based militants killed 16 Egyptian soldiers in an incident which damaged the prestige of the military. As a result of
that incident, President Morsi “dismissed” 77-year-old Defense Minister Field Marshal Mohamed Hussein Tantawi and
other officers, though many experts believe that, behind-the-scenes, younger officers forced Tantawi and others into
retirement, desiring a less public military role in governance. In exchange for its relinquishing most executive authority,
the military most likely sought the Muslim Brotherhood’s guarantee that it would constitutionally enshrine autonomy for
the military and protection from civilian oversight on key traditional prerogatives. Egypt’s new constitution, approved by
referendum in December 2012, does precisely that: it allows the military to choose the defense minister; creates three
different “councils” (National Security Council, Supreme Council of the Armed Forces, and National Defense Council)
that are comprised of a majority of military officers and have ultimate authority over the defense budget; and continues the
practice of allowing civilians to be tried by military courts, though only in cases where the “crimes are susceptible to harm
the armed forces.”
2
In general, many Egyptians and some in the international community have bemoaned what they perceive to be a
propensity toward authoritarian governance exhibited by President Morsi in recent months. For example, according to
Gamal Eid, the executive director of the Arab Network for Human Rights, there have been four times as many “insulting
the presidency” lawsuits filed against citizens during President Morsi's first 200 days in office than during the entire 30year reign of former president Hosni Mubarak. See, “More 'insulting president' Lawsuits under Morsi than Mubarak,” Al
Ahram Online, January 20, 2013. Others charge that the Brotherhood is attempting to control the education system, labor
unions, and religious institutions. See, Open Source Center Report: Egypt – “Officials, Media Criticize Latest
'Ikhwanization' Efforts,” GMP20130118256001 Egypt -- OSC Report in English, January 17, 2013.
3
In the past three months, Egypt has experienced a wave of popular unrest directed against President Morsi himself and
the process leading to the approval of the constitution. Although Muslim Brotherhood supporters still turned out in large
enough numbers (total national turnout of 32%) to approve the Islamist-crafted constitution in a public referenda by a
margin of 64% for to 36% against, critics charge that President Morsi forced the process forward, starting with his
November 2012 declaration that provided him with immunity from judicial oversight, which he made in order to avoid
having the courts annul the Islamist-dominated Constituent Assembly charged with drafting the document (Morsi
rescinded most of the decree on December 8 but insisted that the referendum occur as scheduled). When protests occurred
outside the presidential palace, regime critics allege that members of the Muslim Brotherhood violently dispersed
protestors. Anti-Brotherhood protests in Cairo were particularly strong, as 56% of Cairene voters actually voted against the
constitution’s approval.
4
In January 2013, a court verdict sentencing 21 “Ultras” (hard-core Egyptian soccer fans) to death for their role in a riot
last year sparked widespread violence in Egypt’s three canal cities against the Muslim Brotherhood and the much maligned
police forces, who, many Egyptians claim, continue to brutalize the population. For several days, authorities actually lost
control over Port Said to protestors, leading Defense Minister General Abdul Fattah al Sisi to declare on January 29 that
“The continuation of the conflict between different political forces and their disagreement on running the affairs of the
country may lead to the collapse of the state and threatens the future of the coming generations.”
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the so-called secular-liberal parties. Of these political groupings, the Muslim Brotherhood continues
to be the most successful at attracting supporters due to its sustained focus on social services, party
discipline and organization, its history of opposition to Mubarak, and the broad popular appeal of
Islam. Its electoral strength has led it to victories in the 2011-2012 parliamentary elections, the June
2012 presidential election, and the December 2012 constitutional referendum. Its decades-long
experience in opposition gives it unparalleled credibility among its constituents and the movement
has a major advantage in voter mobilization, especially when overall voter turnout is lower than
anticipated. The Brotherhood did not immediately employ its full political weight, having only a
year ago changed course by opting to field a presidential candidate after initially pledging not to do
so. After three consecutive electoral victories, clearly the Brotherhood has embraced the
opportunities afforded it in the post-Mubarak era.
However, actual governance has been far more challenging for the Brotherhood than winning
elections, as the reality of Islamists wielding real political power has engendered a fierce backlash
from Brotherhood opponents who deeply distrust its motives. President Morsi on November 22,
2012 declared temporary immunity of the presidency from judicial review. This controversial step
was the catalyst for the creation of a new opposition coalition, named the National Salvation Front
(NSF). It is composed of several former presidential candidates, including Amr Moussa and
Hamdeen Sabahi.5 It also includes Mohammed ElBaradei, the former Secretary General of the
International Atomic Energy Agency.
Overall, though the Brotherhood may be attempting to consolidate power, some observers still
believe that state institutions can somewhat hold it in check. According to one Egyptian editor, “If
you think of the main pillars of the bureaucracy, the Brotherhood has not gotten control of them yet,
and I don’t think they will completely....There are so many people who are very difficult to bring to
heel.... I think we are in for several years of turbulence where state power is diffused.”6 Perhaps the
single greatest challenge for the Brotherhood is controlling and reforming the Interior Ministry and
national police forces, which have been practically at war with street protestors over the past two
years and have made no progress in gaining public trust. According to one account, “In a measure of
the low level of the new government’s top-down control over the security forces, officers even
cursed and chased away their new interior minister when he tried to attend a funeral for two
members of the security forces killed in the recent clashes.”7
Political Outlook
The Muslim Brotherhood’s political party, the Freedom and Justice Party (FJP), has declared that it
is seeking an outright parliamentary majority in the parliamentary elections tentatively scheduled for
April 2013.8 For opposition groups the key to electoral success will be maintaining internal unity,
which in the past has proved difficult. The Salafi voting block has already split (it had been the
second most powerful grouping in Egypt’s short-lived, first post-Mubarak parliament), and the
5
Analysts have paid particular attention to Sabahi, who finished third in the 2012 election due to his personal charisma,
past record of opposition to the Mubarak regime, and socialist economic populism.
6
“Brotherhood Struggles to Translate Power Into Policy in Egypt,” New York Times, January 19, 2013.
7
“Egypt’s Army Chief warns of ‘collapse,’” International Herald Tribune, January 30, 2013.
8
In February 2013, the Supreme Constitutional Court (SCC) objected to a draft electoral law. The Upper House of
Parliament revised the law, and parliamentary elections will begin on April 22/23 and last well into the month of May.
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Egyptian media is constantly speculating over possible splits within the NSF. The NSF itself may
choose to boycott parliamentary elections entirely.
Whatever the electoral outcome brings, numerous anecdotes indicate that continued factional
fighting between Islamist and non-Islamist groups seems to be contributing to a reduction in public
faith in government. According to Shadi Hamid, Director of Research at the Brookings Doha Center,
“I think the lack of trust is so deep-seated that even if the Brotherhood made good faith gestures I
don't know if the opposition could believe them or take them at face value.”9 This trend may become
exacerbated by deteriorating economic conditions. Overall, Egyptian groups appear to be treating
politics as a zero-sum game in which the Brotherhood and its opponents have used heightened,
sometimes even violent, rhetoric to discredit the other side. As violence in the streets becomes more
commonplace, politicians seize upon each incident as an opportunity to delegitimize their opponents
and blame them for the country’s ills. With each successive incident of public unrest, the rhetoric is
becoming more heated, which raises international concern over respect for the rule of law in Egypt.
There is even speculation of a return to direct military rule if political violence grows. According to
Army Chief of Staff Sedki Sobhi, “It [the military] keeps an eye on what goes on in the nation and if
the Egyptian people ever needed the armed forces, they will be on the streets in less than a
second.”10
For example, in late January and early February, as the two-year anniversary of the 2011 revolution
coincided with rioting in the canal cities, national figures condemned their opponents in harsh terms.
In February 2013, Hamdeen Sabahi commented on political unrest by saying that President Morsi
demonstrated “arrogance, the use of force and more bloodshed... thus we have sided with the street
and call for the bringing down of the dictatorship regime and the trial of its figures.”11 A well-known
Salafi cleric, Mahmoud Shaaban, was recently detained for allegedly inciting potential attempts on
the lives of Sabahi and other NSF leaders when he said on February 2 that the NSF wanted power
and were “burning Egypt to get it.... It is clear now their sentence in God’s law is death.”12 Although
some degree of inflammatory rhetoric is to be expected in Egypt’s volatile political climate, the
situation appears to be getting worse with time. According to the International Crisis Group:
In the absence of a shared view of the foundations of a future political system, Islamists are
pressing their vision, while their opponents play spoilers. This has the makings of a selffulfilling prophecy: the more the opposition obstructs and calls for Morsi's ouster, the more it
validates the Islamists' conviction it will never recognize their right to govern; the more the
Brotherhood charges ahead, the more it confirms the others' belief of its monopolistic designs
over power. Even if leaders back away from the brink, this could quickly get out of hand, as
their ability to control the rank and file — and, in the case of the opposition, ability to represent
the rank and file — dwindles.13
As of late February 2013, relatively small nation-wide protests continue along with crippling labor
strikes (including an unprecedented protest outside the Suez Canal Authority), but the worst unrest
has subsided. In the canal cities, President Morsi has imposed a 30-day national emergency (martial)
law and curfew. There have been calls for a national dialogue to reduce political tensions between
9
“Egypt is once again Risking its Future,” Reuters, January 30, 2013.
“Egypt’s Military growing Impatient with Morsi,” Times of Israel, February 21, 2013.
11
“BBCM Analysis: Winners, Losers in Egypt's Political Crisis,” Open Source Center GMP20130205950052 Caversham
BBC Monitoring in English, February 5, 2013.
12
“Egypt Orders Cleric held over ElBaradei Death Call,” Reuters, February 11, 2013.
13
“Egypt Conflict Alert,” International Crisis Group, Brussels/Cairo, February 4, 2013.
10
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the Brotherhood, NSF, and other factions, but these are unlikely to take place because the NSF has
conditioned its participation in such a dialogue on the Morsi Administration’s formation of a new
government of national unity and prosecution of police suspected of killing protestors.
Economy
Egypt’s economy has suffered immensely since the 2011 revolution, and efforts to stabilize the
country’s fiscal deficit run the risk of exacerbating growing social unrest. Egypt is experiencing a
phenomenon known as “stagflation,” a crippling combination of inflation and lack of growth. In
2012, real GDP grew by 2.2%, a figure that barely exceeds the country’s population growth. In 2011,
real GDP grew by 1.78%. In order to prop up social spending, preserve costly fuel and food
subsidies, service the debt, and counter the effects of investor capital flight, the central government
has been running huge budget deficits and drawing down its foreign exchange reserves. Almost
three-quarters of Egypt’s national budget is spent on state salaries, subsidies, and interest payments.
In its current fiscal year, Egypt’s annual budget deficit could range from $26 to $31 billion; the high
end of that range may exceed the Ministry of Finance’s projection of a deficit around 10% of GDP.
In addition to the government’s domestic borrowing, its foreign exchange reserves are down from
$36 billion in 2011 to $13.6 billion as of February 2013—enough for three months of import cover.
In order to assist exports14 and tourism, the Central Bank has tried to manage the gradual
devaluation of the currency (Egyptian Pound), which has slid 8% against the dollar in 2013.
Although the government claims that the currency will not collapse, there is concern that rising
prices may spark additional unrest, as imported food and fuel become more expensive. Food prices
increased 8% last year and overall inflation was 7%. With the government considering additional tax
increases and subsidy reductions as part of a proposed International Monetary Fund (IMF) deal, the
cost of living may substantially increase for all Egyptians in 2013.
Egypt and the International Monetary Fund
Domestic banks are no longer able to buy government debt at levels needed to sustain rising
government expenditures. In order to address its balance of payments deficit, Egypt has been in
negotiations with the IMF for a $4.8 billion low interest credit facility that would spark billions more
(perhaps as much as $14 billion) in foreign loans if reached. Although the terms of the deal have yet
to be finalized (and may not be until after the parliamentary elections currently scheduled for April),
its parameters include a reduction in fuel subsidies and the imposition of a value added tax. So far,
the government has raised prices on high-octane petrol and residential electricity and has announced
plans to introduce rationing systems for the sale of subsidized butane and diesel.
Accepting IMF credit may be a divisive issue in Egyptian politics. Clearly, unpopular steps like
price and tax increases may prove politically costly for the Muslim Brotherhood, and thus President
Morsi may try to delay finalization of the deal until after parliamentary elections. In December 2012,
the Morsi Administration proposed new taxes, including duties on cigarettes and alcohol, but
14
Textile exports are a key industry in Egypt, providing nearly a quarter of all industrial jobs and according to the
Financial Times accounting for 27% of non-oil exports. See, “Trade conditions weaken Egypt textiles,” Financial Times,
Feb. 11, 2013.
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retracted them due to public protest. In February 2013, President Morsi announced the
implementation of a progressive property tax with new revenue to be allocated toward public
housing and healthcare. The government may also enact a tax on all stock market transactions and
raise the corporate tax rate to standard 25% for all companies. In the meantime, credit agencies such
as Moody’s, Fitch, and S&P all have recently downgraded the government’s bond rating.
International lenders, such as Qatar, Saudi Arabia, and Turkey, have provided the Central Bank with
new lending and grants, but more may be required in the short term.15 Egypt’s foreign debt remains
manageable at $34.7 billion, or around 13-15% of GDP.
Relations with Israel
Many historians have documented the long tradition within the Muslim Brotherhood of antiIsrael/anti-Semitic sentiment, most recently highlighted when reports surfaced of a 2010 Morsi
speech in which he called Jews “the descendants of apes and pigs.”16 Israel remains deeply
concerned over the trajectory of Egyptian politics and its implications for Israel-Egypt relations and
the 1979 peace treaty. In practical terms, however, both sides continue to cooperate on military and
intelligence matters, as evidenced by a series of recent military exchanges between Israeli and
Egyptian officials. According to one report, Israeli military leaders met in mid-February with Egypt's
intelligence chief, General Raafat Shehata, to discuss Hamas and security along the Israel-Egypt
border.17
Although Egyptian military and intelligence may be the key interlocutors with Israel, President
Morsi clearly feels that he himself has a role to play. In addressing Morsi’s mediation role between
Hamas and Israel in reaching a cease-fire back in November 2012, one Morsi advisor remarked,
“Let me tell you why the Gaza mediation worked. For the first time in a long time, there was an
honest broker.” According to the Jerusalem Post, about two-thirds of Israelis polled in late 2012 said
that Morsi had a positive impact on ending the Gaza violence.18 Egypt continues to mediate indirect
Israel-Hamas discussions—following from the November cease-fire agreement—regarding the
possible further easing of restrictions on commerce in Gaza and relaxing of various buffer zone
security measures.19 Egypt also is mediating a new round of intra-Palestinian talks aimed at
implementing past agreements for a Fatah-Hamas consensus government in the West Bank and
Gaza.
15
In January 2013, Qatar, which has already provided Egypt with $2.5 billion in loans and grants since Muhammad Morsi
took office, gave the government an additional $1 billion in grant aid and $1.5 billion in loans, bringing its total assistance
over the past year to $5 billion. In addition, Qatar’s QInvest Corporation is taking a majority stake in Egypt's biggest
investment bank, EFG Hermes.
16
See the Middle East Media Research Institute’s (MEMRI) Anti-Semitism and Holocaust Denial Project at:
http://www.thememriblog.org/antisemitism
17
“Report: Israeli delegation meets with Egyptian intelligence chief,” Israel News (YNET), February 20, 2013.
“Majority of Israelis supported Gaza operation - poll. Two-thirds of the public believe Egypt's Mohamed Morsi had
positive impact on ending conflict,” The Jerusalem Post, December 9, 2012.
19
“Hamas confirms Indirect, Egyptian-sponsored talks with Israel over Gaza,” Xinhua, February 16, 2013.
18
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Figure 1. Map of Egypt
Source: Map Resources, adapted by CRS.
U.S.-Egyptian Relations
The United States is facing a series of challenges stemming from more than two years of dramatic
change in Egypt. The Administration and Congress have a number of interests at stake in Egypt as
well as some potential levers of influence. Interests include maintaining U.S. naval access to the
Suez Canal20, maintaining the 1979 Israel-Egypt peace treaty, and promoting democracy and
economic growth within Egypt, the region’s largest Arab country. Egypt’s President Muhammad
Morsi, who hails from the Muslim Brotherhood, may choose to cooperate with the United States on
some security and economic matters, though many analysts are concerned that his government may
at times act undemocratically, be more confrontational toward Israel, and limit its cooperation with
20
For example, the U.S. Navy relies on receiving expedited passage for U.S. warships through the Suez Canal in order to
deploy carrier groups swiftly to the Persian Gulf region. Without passage through the Canal, the Navy would have to
deploy ships around the Cape of Good Hope —adding significant time to deployment from Norfolk, VA to the Persian
Gulf or Indian Ocean.
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the United States on intelligence and terrorism-related issues. Others assert that while Egypt may not
follow the U.S. lead as closely as in the past (as evident by recent Iranian-Egyptian exchanges), its
need for U.S. support to grow its economy and support its military should provide the United States
with some leverage.
Current debate surrounding U.S. policy toward Egypt centers on the degree to which the United
States should support a government led by a former leading member of the Muslim Brotherhood.
Although most stakeholders in this debate would seek to avoid Egypt’s state failure and the negative
repercussions it would almost certainly entail for U.S. and global security, there is less consensus
over the degree to which the United States should help an Egyptian government that may or may not
pursue policies in line with American values and regional security interests. There is also
disagreement about the related question of how much leverage the United States gains through
various forms of financial assistance.
Overall, U.S. policymakers have broadly emphasized political inclusion21 and economic stabilization
while carefully avoiding entanglements in Egyptian domestic politics. Some critics of the
Administration’s approach have called for President Obama to exert more pressure on the Egyptian
government, especially in advocating for religious minorities’ and women’s rights. In response, the
Administration has counseled patience. Amidst the widespread December 2012 protests in Egypt,
one senior Administration official reportedly said that “These last two weeks have been concerning,
of course, but we are still waiting to see....One thing we can say for Morsi is he was elected, so he
has some legitimacy.”22 After taking office, Secretary of State John Kerry rejected the notion of
reducing U.S. aid to Egypt: “A hold up of aid might contribute to the chaos that may ensue because
of their collapsing economy...their biggest problem is a collapsing economy.”23
U.S. Foreign Aid to Egypt
Between 1948 and 2011, the United States provided Egypt with $71.6 billion in bilateral foreign aid,
including $1.3 billion a year in military aid from 1987 to the present. Since 1979, Egypt has been the
second-largest recipient, after Israel, of U.S. bilateral foreign assistance.24 In July 2007, the George
21
For example, the State Department commented on the public approval of the constitution, stating that: “The future of
Egypt’s democracy depends on forging a broader consensus behind its new democratic rules and institutions. Many
Egyptians have voiced deep concerns about the substance of the constitution and the constitutional process. President
Morsi, as the democratically elected leader of Egypt, has a special responsibility to move forward in a way that recognizes
the urgent need to bridge divisions, build trust, and broaden support for the political process. We have called for genuine
consultation and compromise across Egypt’s political divides. We hope those Egyptians disappointed by the result will
seek more and deeper engagement. We look to those who welcome the result to engage in good faith. And we hope all
sides will re-commit themselves to condemn and prevent violence.” See, Referendum on the Egyptian Constitution, Press
Statement, Patrick Ventrell, Acting Deputy Spokesperson, Office of the Spokesperson, Washington, DC, December 25,
2012.
22
“Obama Walks a Fine Line with Egyptian President,” New York Times, December 14, 2012.
23
“US Aid to Egypt must continue despite Unrest, says John Kerry,” Al Ahram Online, January 31, 2013.
24
The 1979 Peace Treaty between Israel and Egypt ushered in the current era of U.S. financial support for peace between
Israel and her Arab neighbors. In two separate memoranda accompanying the treaty, the United States outlined
commitments to Israel and Egypt, respectively. In its letter to Israel, the Carter Administration pledged to “endeavor to
take into account and will endeavor to be responsive to military and economic assistance requirements of Israel.” In his
letter to Egypt, former U.S. Secretary of Defense Harold Brown wrote that “the United States is prepared to enter into an
expanded security relationship with Egypt with regard to the sales of military equipment and services and the financing of,
at least a portion of those sales.” Ultimately, the United States provided a total of $7.3 billion to both parties in 1979. The
Special International Security Assistance Act of 1979 (P.L. 96-35) provided both military and economic grants to Israel
(continued...)
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W. Bush Administration signed a 10-year Memorandum of Understanding (MOU) with Israel to
increase U.S. military assistance from $2.4 billion in FY2008 to over $3 billion by 2018. Egypt
received no corresponding increase in U.S. military aid; instead, the Bush Administration pledged to
continue to provide Egypt with $1.3 billion in military aid annually, the same amount it has received
annually since 1987. Unlike with Israel and, separately, with Jordan, the Bush Administration’s
pledge did not involve signing a bilateral MOU with the Egyptian government. Congress typically
specifies a precise allocation of foreign assistance for Egypt in the foreign operations appropriations
bill. Egypt receives the bulk of foreign aid funds from three primary accounts: Foreign Military
Financing (FMF), Economic Support Funds (ESF), and International Military Education and
Training (IMET).25
Military Aid
In FY2011, Egypt received almost a quarter of all U.S. FMF funds, and Israel received nearly 60%.
FMF aid to Egypt is divided into three general categories: (1) acquisitions, (2) upgrades to existing
equipment, and (3) follow-on support/maintenance contracts. U.S.-Egyptian coproduction of the
M1A1 Abrams Battle tank, which began in 1988, is one of the cornerstones of U.S. military
assistance to Egypt. Egypt plans to acquire a total of 1,200 tanks. Under the terms of the program, a
percentage of the tank’s components are manufactured in Egypt at a facility on the outskirts of Cairo
and the remaining parts are produced in the United States and then shipped to Egypt for final
assembly. General Dynamics of Sterling Heights, MI, is the prime contractor for the program.26
Although there are no verifiable figures on total Egyptian military spending, it is estimated that U.S.
military aid covers as much as 80% of the Defense Ministry’s weapons procurement costs.27 Egypt
also receives Excess Defense Articles (EDA) worth hundreds of millions of dollars annually from
the U.S. Defense Department. The United States offers IMET training to Egyptian officers in order
to facilitate U.S.-Egyptian military cooperation over the long term. IMET assistance also makes
Egypt eligible to purchase training at a reduced rate.
In addition to large amounts of annual U.S. military assistance, Egypt benefits from certain aid
provisions that are available to only a few other countries. Since 2000, Egypt’s FMF funds have
(...continued)
and Egypt at a ratio of 3 to 2, respectively, though this ratio was not enshrined in the treaty as Egypt would later claim.
25
Egypt also receives, though not consistently, relatively small sums from the Nonproliferation, Antiterrorism, Demining,
and Related Programs (NADR) account and the International Narcotics Control and Law Enforcement (INCLE) account.
NADR funds support counter-terrorism training through the Antiterrorism Assistance Program. INCLE funds support
police training and respect for human rights in law enforcement.
26
Congress was notified in July 2011 of a potential M1A1 agreement. The notification is listed here:
http://www.dsca.mil/PressReleases/36-b/2011/Egypt_10-67.pdf
Congress did not object to the sale, and an M1A1 contract was finalized thereafter. The following is information on the
contract from the Department of Defense: General Dynamics [GD] Land Systems has received a $395 million contract for
work under the Egyptian tank co-production program. The contract, issued by the Army TACOM Lifecycle Management
Command, has awarded the funds for production of 125 M1A1 Abrams tank kits for the 11th increment of the Egyptian
co-production program. Since 1992, General Dynamics has provided components for kits used in the co-production
program. The parts are shipped to a production facility near Cairo, Egypt, where the tanks are manufactured for the
Egyptian Land Forces. This latest increment will increase the number of Egyptian co-production-built tanks to 1,130.
Work on the components is to be performed in Anniston, Ala.; Tallahassee, Fla.; Sterling Heights, Mich.; Lima, Ohio; and
Scranton, Penn., by existing General Dynamics employees. Deliveries are to begin in July 2013 and continue to January
2016.
27
According to one source, U.S. military assistance pays for about a third of Egypt’s overall defense budget each year.
See, “Three Decades of Weapons, Training for Egypt Keep U.S. in Loop,” Bloomberg, February 2, 2011.
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been deposited in an interest-bearing account in the Federal Reserve Bank of New York and have
remained there until they are obligated. By law (P.L. 106-280), Congress must be notified if any of
the interest accrued in this account is obligated. Most significantly, Egypt is allowed to set aside
FMF funds for current year payments only, rather than set aside the full amount needed to meet the
full cost of multi-year purchases. Cash flow financing allows Egypt to negotiate major arms
purchases with U.S. defense suppliers.
Arms Sales Issues
With the President of Egypt hailing from the Muslim Brotherhood, some lawmakers and U.S.
citizens are concerned that continued U.S. military aid and sales of U.S. equipment could be one day
used by a government and military that is controlled by Islamist forces hostile to U.S. national
security interests and to peace with Israel. Some opponents of U.S. military aid to Egypt may apply
further scrutiny in the months ahead to proposed U.S. arms sales to Egypt financed by U.S. taxpayer
dollars. Already, some media attention has focused on the pending delivery (In January 2013, four F16s arrived in Egypt) in 2013 of 20 F-16 C/D fighters to Egypt that were notified to Congress in
2009.28 Congress did not object to the sale after the notification, which was before the change in
Egypt’s government, and in 2010 Lockheed Martin and Egypt reached an agreement for the
purchase of 20 F-16C/Ds29 valued at an estimated $2.5 billion.
Another concern of some lawmakers is security in the Sinai Peninsula. P.L. 112-74, the Consolidated
Appropriations Act, 2012, includes language that specifies that “$1,300,000,000 shall be made
available for grants only for Egypt, including for border security programs and activities in the
Sinai.” The Administration has been calling on the Egyptian military to use FMF to purchase border
security equipment, but no purchase decision has been reached.
Finally, some lawmakers may be seeking to restructure the way Egypt may use FMF grants in the
future. Although the Defense Department has for years tried to gradually convince the Egyptian
military to focus its procurement more on counter-terrorism and counter-insurgency equipment and
training than on conventional military items, the deterioration of law and order in Egypt has
reenergized this issue. Some lawmakers may seek to direct future FMF spending toward reforming
Egypt’s internal police forces and countering the terrorist threat in the Sinai Peninsula.30
Table 1. U.S. Assistance to Egypt, FY2010-FY2013 Request
(Regular and Supplemental Appropriations; Current Year $ in Millions)
Account
FY2010
FY2011
FY2012
FY2013 Request
ESF
250.0
249.5
250.0
250.0
FMF
1,300.0
1,297.4
1,300.0
1,300.0
IMET
1.900
1.400
1.400
1.800
INCLE
1.000
1.000
.250
7.900
28
See, http://www.dsca.mil/PressReleases/36-b/2009/Egypt_%2009-34.pdf.
Since 1980, under the Peace Vector Foreign Military Sales Program, Egypt has acquired over 220 F-16s. It is the fourth
largest operator of the F-16 after the United States, Israel, and Turkey.
30
“Bipartisan Senate Group Calls for Egypt Aid Restructure,” Congressional Quarterly, February 12, 2013.
29
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Account
NADR
Total
FY2010
FY2011
FY2012
FY2013 Request
2.800
4.600
5.600
—
1,555.7
1,553.9
1,557.25
1,559.7
Economic Aid
During the 1980s and 1990s, Egypt received large amounts of annual economic loans and grants,
mainly to support large-scale USAID infrastructure projects in sanitation, education, and
telecommunications.31 By the late 1990s, Congress began to scale back economic aid both to Egypt
and Israel due to a 10-year agreement reached in the late 1990s known as the “Glide Path
Agreement.” In January 1998, Israeli officials, sensing that their economic growth had obviated the
need for that type of U.S. aid at a time when Congress sought to reduce foreign assistance
expenditures, negotiated with the United States to reduce economic aid and increase military aid
over a 10-year period. A 3:2 ratio that long prevailed in the overall levels of U.S. aid to Israel and
Egypt was applied to the reduction in economic aid ($60 million reduction for Israel and $40 million
reduction for Egypt), but Egypt did not receive an increase in military assistance. Thus, Congress
reduced ESF aid to Egypt from $815 million in FY1998 to $411 million in FY2008. The Bush
Administration, whose relations with then-President Hosni Mubarak suffered over the latter’s
reaction to the Administration’s democracy agenda in the Arab world, then requested that Congress
cut ESF aid by half in FY2009 to $200 million. Congress appropriated the President’s request. Upon
taking office in 2009, President Obama sought a $50 million increase in economic aid to Egypt for
FY2010, which Congress then passed.
In prior years, ESF funds were divided into two categories: USAID projects and cash transfers.32
ESF funds are allocated to a variety of sectors, including health, education, economic growth, and
democracy and governance. U.S. funding for the latter has been a source of acrimony between the
United States and Egypt for years, culminating in the recent dispute over U.S. funding for nongovernmental organizations.33
U.S. Funding for Democracy Promotion in Egypt
Each year, a small portion of USAID-managed bilateral economic aid is spent on democracy
promotion programs. On principle, the Mubarak government rejected U.S. assistance for democracy
promotion activities, though it grudgingly accepted certain programming. On the other hand,
democracy activists believe that the U.S. government, particularly during the Obama Administration
and before the January 2011 popular uprising, had not been aggressive enough in supporting
political reform in Egypt.
31
According to the U.S. State Department, U.S. economic aid has helped provide clean drinking water and sanitation to the
city of Cairo, build more than 2,000 schools and double literacy levels, and decrease in the maternal mortality rate by over
50% and the child mortality rate by over 70%. See, U.S. State Department, Assistance to Egypt Fact Sheet, Office of the
Spokesman, Washington, DC, May 19, 2011.
32
It is unclear if USAID is still operating the cash transfer program, as it had been scheduled to be phased out by 2011.
33
On February 6, Egyptian authorities charged 43 people, including the Egypt country directors of NDI and IRI, with
spending money from organizations that were operating in Egypt without a license. 19 Americans, including Sam LaHood
of IRI, the son of U.S. Transportation Secretary Ray LaHood, face criminal charges. Having departed Egypt, almost all of
the accused Americans are being tried in absentia.
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The Mubarak government staunchly opposed foreign support to independent civic groups that
demanded government accountability, as well as civic groups that had not received government
approval. During the Bush Administration, executive branch policymakers and Members of
Congress directed some ESF toward direct support for Egyptian non-governmental organizations
(NGOs).
In FY2005, Congress directed that “democracy and governance activities shall not be subject to the
prior approval of the GoE [government of Egypt],” language which remained in annual foreign
operations appropriations legislation until FY2010 (see below).34 Under Mubarak, Egypt had
claimed that U.S. assistance programs must be jointly negotiated and could not be unilaterally
dictated by the United States. P.L. 111-117, the Consolidated Appropriations Act, FY2010,
contained general legislative language on the use of U.S. funds to NGOs, stating in Section 7034:
With respect to the provision of assistance for democracy, human rights and governance
activities in this Act, the organizations implementing such assistance and the specific nature of
that assistance shall not be subject to the prior approval by the government of any foreign
country.35
P.L. 112-10, the Department of Defense and Full-Year Continuing Appropriations Act, 2011, became
law on April 15, 2011, after the resignation of former Egyptian President Hosni Mubarak, and did
not contain language addressing the NGO issue.36 Appropriations for FY2012 contain multiple
conditions on all types of assistance to Egypt (discussed below).
Many U.S.-based and Egyptian NGOs are concerned that a draft NGO law under consideration by
the Upper House of parliament would, if passed, seriously curtail the ability of civil society
organizations to obtain funding. Reportedly, the Egyptian Ministry of Insurance and Social
34
Congress sought to ensure that U.S. foreign assistance for Egypt was being appropriately used to promote reform. In
conference report (H.Rept. 108-792) language accompanying P.L. 108-447, the FY2005 Consolidated Appropriations Act,
conferees specified that “democracy and governance activities shall not be subject to the prior approval of the GoE
[government of Egypt]. The managers intend this language to include NGOs and other segments of civil society that may
not be registered with, or officially recognized by, the GoE. However, the managers understand that the GoE should be
kept informed of funding provided pursuant to these activities.”
35
P.L. 111-117. The conference report accompanying the Act notes, “the requirements of section 7034(m)(4) of this Act
shall apply with respect to the provision of assistance to Egyptian NGOs.”
36
The FY2011 act did contain the following provisions on economic aid to Egypt: “That of the funds appropriated under
this heading, up to $250,000,000 shall be made available for assistance for Egypt for activities that support democratic
elections, promote representative and accountable governance, protect human rights, strengthen civil society and the rule
of law, reduce poverty, promote equitable economic development, and expand educational opportunities for disadvantaged
Egyptian youth, including through scholarship programs: Provided further, That the Secretary of State shall submit a
spending plan, including a comprehensive strategy to promote democracy and development, to the Committees on
Appropriations for funds provided for Egypt under this heading: Provided further, That such plan shall not be considered
as meeting the notification requirements under Section 7015 of division F of P.L. 111-117 or under Section 634A of the
Foreign Assistance Act of 1961: Provided further, That such funds shall be subject to the regular notification procedures of
the Committees on Appropriations: Provided further, That funds appropriated under this heading shall be made available to
support democratic transitions in the Middle East and North Africa, including assistance for civil society organizations and
the development of democratic political parties:’ (b) Not later than 45 days after enactment of this Act, the Secretary of
State shall submit to the Committees on Appropriations a report on Egypt detailing whether—(1) a transparent, political
transition is occurring that includes the participation of a wide range of democratic opposition and civil society leaders and
is responsive to their views; (2) the emergency law and other laws restricting human rights have been abrogated;
protesters, political and social activists and journalists are not being arrested, detained or prosecuted for the peaceful
exercise of their rights; and the government is respecting freedoms of expression, assembly and association; and (3) legal
and constitutional impediments to free and fair presidential and parliamentary elections are being removed.”
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Solidarity requires that local NGOs obtain permission from state security before “engaging with
international entities.”37
U.S. Foreign Aid to Egypt since the February 2011 Revolution
U.S. foreign aid to Egypt, which was contentious during the reign of former President Hosni
Mubarak, has continued to spark debate among lawmakers and between Congress and the Obama
Administration. Although the Administration proposed the same bilateral foreign operations
appropriation request for Egypt in FY2013 that Egypt received in the previous three fiscal years
(approx. $1.55 billion), the implementation of new Administration aid initiatives previously
authorized by Congress, such as debt relief and an Enterprise Fund, have been placed on hold by
some lawmakers. Due to overall U.S. budgetary limitations, concern over widespread antiAmericanism permeating Egyptian politics, uncertainty over the intentions of the Muslim
Brotherhood, and general U.S. concern over Egypt’s transition to democracy and adherence to the
1979 Israel-Egypt Peace Treaty, bilateral cooperation on aid has not been as robust as elsewhere in
the region (e.g., Tunisia).
After Mubarak's resignation in February 2011, the Administration made several aid proposals for
Egypt. In the weeks following the resignation, the Obama Administration reprogrammed $165
million in already- appropriated ESF for support to Egypt's economy ($100 million) and political
transition ($65 million38). In a speech delivered at the State Department on May 19, 2011, President
Obama outlined a new plan for U.S. engagement with Egypt and other Arab countries undergoing
political transitions. Major components of that plan included providing up to $1 billion in bilateral
debt relief39 to Egypt and $1 billion in U.S.-backed loan guarantees40 to finance Egyptian
infrastructure and job creation, and creating an enterprise fund to invest in small- and medium-sized
Egyptian businesses (SME).
The current status of various U.S. aid initiatives for Egypt is as follows:
•
Bilateral Aid (Appropriated & Obligated): P.L. 112-10, the Department of Defense and
Full-Year Continuing Appropriations Act, 2011, became law on April 15, 2011, after
Mubarak’s resignation. It included $1.55 billion in military and economic aid. P.L. 112-74,
the Consolidated Appropriations Act, 2012, also provided the full request for Egypt ($1.55
billion). It also authorized debt relief funding for the creation of an enterprise fund.41
Although Administration requests regarding U.S. bilateral aid to Egypt are not tied to a
specific bilateral Memorandum of Understanding (as they are for Israel and Jordan),
37
Open Source Center, “NGO concerned over Human Rights in Egypt,” Cairo Daily News Egypt Online (in English),
GMP20130226966013, February 26, 2013.
38
USAID provided support to both the 2011 parliamentary and 2012 presidential elections (est. $20-$23 million),
including assistance to domestic and international election “witnesses” who reported on the election process and
administration assistance in collaboration with the Egyptian High Election Commission (HEC), among other activities.
39
As of June 2012, total Egyptian debt to the United States was approximately $2.7 billion, with $1.2 billion owed to
USAID and the balance owed to USDA.
40
According to the U.S. State Department, Loan Guarantees to Egypt were authorized in the Emergency Wartime
Supplemental Appropriations Act, 2003 (P.L. 108-11). The maximum principal to be guaranteed was $2 Billion and the
authority expired on September 30, 2005. Only $1.25 billion in guarantees were issued under the program, and that amount
remains outstanding, with the total principal due in September 2015.
41
For information on conditionality in P.L. 112-74, see page 14 and “Recent Legislation.”
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Congress has appropriated $1.3 billion in Foreign Military Financing a year to Egypt since
FY1987. In 2009, the State Department and government of Egypt exchanged letters on an
informal U.S. commitment of $250 million in ESF per year with no end date.
•
Reprogrammed Aid (Delivered): As mentioned above, the Obama Administration
reprogrammed an estimated $160 million in previously appropriated Economic Support
Funds for Egypt in the months following Mubarak’s resignation. Approximately $65 million
of this total was directed toward democracy and governance support.42
•
Debt Relief43 (Authorized but on Hold): In late September 2012, some Members of
Congress placed holds on a congressionally notified $450 million Economic Support Fund
(ESF) cash transfer to Egypt.44 Those funds would have been used to pay down Egypt's
bilateral debt45 (approximately $2.7 billion) to the United States in exchange for Egyptian
government commitment to a fiscal stabilization program as prescribed by the International
Monetary Fund.46 As of January 2013, the holds on the cash transfer remained in place. The
remaining $550 million in debt relief pledged by the Obama Administration, according to
the State Department, is still under consideration but it has not been notified to Congress.
•
Enterprise Fund (Authorized but on Hold): In November 2012, the Administration
notified Congress of its intent to spend $60 million in previously appropriated ESF on the
42
According to USAID, this funding included grants to local Egyptian civil society and international organizations to
conduct voter education programs, election observation missions, and advisory services on election management and
processes. Some Egyptian politicians objected to U.S. funding for unregistered civil society organizations inside Egypt and
took legal action against 45 American and international employees of some of these implementing partners. Though almost
all accused American nationals have left Egypt, they continued to be tried in absentia. Known informally as the NGO trial,
their case has been adjourned until the summer of 2013.
43
Egypt has already received substantial debt relief from the United States. In recognition of Egypt’s participation in
Operation Desert Storm in Iraq, in 1990, President George H.W. Bush asked Congress to forgive $6.7 billion of debt that
stemmed from military loans extended to Egypt by the United States between 1979 and 1984 to help finance large amounts
of weapons purchased under the Foreign Military Sales (FMS) Program. Debt cancelation authority for the full amount
was granted in the 1991 Foreign Operations Appropriations Act. At the time, total Egyptian debt owed to the United
States, including ESF and PL-480 loans, was about $12 million.
44
The ESF cash transfer would come from previously appropriated ESF, including: $55,170,041 ESF (FY 2012),
$225,436,126 ESF (FY 2011), $167,461,116 ESF (No Year), and $1,932,717 ESF (Prior Year Recoveries).
45
A portion of Egypt’s debt to the United States government stems from past food aid programs. U.S. food aid to Egypt
primarily consisted of concessional sales of U.S. wheat under Title I of the Food for Peace Act, which makes available
long-term, low-interest loans or grants to developing countries and private entities for their purchase of U.S. agricultural
commodities to support specific projects. According to one analyst, by the end of 1976, one of every three loaves of bread
consumed by urban Egyptians was a product of wheat purchased under the PL-480 program. See, William Joseph Burn,
Economic Aid and the American Policy Toward Egypt, 1955-1981 (State University of New York Press, Albany,
NY,1985). Loan agreements under the Title I credit program provided for repayment terms of up to 30 years with a grace
period of up to five years. Egypt stopped receiving loans under Title I in 1995 and no U.S. funding for any Title I credit
sales and grants has been appropriated since FY2006.
46
Egypt currently owes the United States approximately $2.7 billion from decades-old food aid loans. In order to provide
debt relief, U.S. government agencies are required to value U.S. loans, such as bilateral debt owed to the United States, on
a net present value basis rather than at their face value, and an appropriation by Congress of the estimated amount of debt
relief is required in advance. P.L. 112-74 provided that ESF funds appropriated for Egypt in the act and from prior acts
could be used for an Egypt debt initiative. Moreover, according to P.L. 112-74, bilateral debt relief funds would be a
"swap" and channeled into programs that improve "the lives of the Egyptian people through education, investment in jobs
and skills (including secondary and vocational education), and access to finance for small and medium enterprises with
emphasis on expanding opportunities for women, as well as other appropriate market-reform and economic growth
activities."
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establishment of the Egyptian-American Enterprise Fund (EAEF). According to USAID, the
EAEF will invest in the Egyptian economy to unlock the benefits of private-sector led
growth, particularly among SMEs. The EAEF was incorporated as a nonprofit non-stock
corporation under the laws of the State of Delaware on October 19, 2012. It is to be led by a
fund manager with private sector experience and overseen by a board of directors comprised
of three Egyptians and six Americans.
Recent Legislation
The Consolidated Appropriations Act, FY2012
Overall, Congress has supported new Obama Administration proposals for Egypt but with
conditions. P.L. 112-74, the Consolidated Appropriations Act, 2012, provides the full request for
Egypt ($1.55 billion), authorizes debt relief, and authorizes and appropriates funding for the creation
of an enterprise fund to promote private sector investment. However, Section 7041 of P.L. 112-74
specifies that no funds may be made available to Egypt until the Secretary of State certifies that
Egypt is meeting its obligations under the 1979 Egypt-Israel Peace Treaty. It further specifies that no
military funds be provided until the Administration certifies that Egypt is supporting the transition to
civilian government, including by holding free and fair elections and by implementing policies to
protect freedom of expression, association, and religion, and due process of law. The Administration
may waive these certifications under certain conditions. In addition, conferees directed the Secretary
of State to submit a report to the Committees on Appropriations, not later than 60 days after
enactment of the act, outlining steps that the government of Egypt is taking to protect religious
minorities, including Coptic Christians; prevent sectarian and gender-based violence; and hold
accountable those who commit such acts.
On March 15, the New York Times reported that the Administration intends to obligate FY2012
military aid to Egypt by exercising the waiver authority Congress granted it in Section 7041 (c) of
P.L. 112-74, the Consolidated Appropriations Act 2012.47 That section would waive a provision of
law requiring the Secretary of State to certify to the Committees on Appropriations that the
government of Egypt is supporting the transition to civilian government before FY2012 Foreign
Military Financing to Egypt is obligated. According to the New York Times report, some
Administration officials have argued that the certification should wait until the presidential election.
However, existing FMF funding previously appropriated by Congress may be dwindling, and the
Egyptian military may be at risk of missing defense contract payments.48
The Secretary of State exercised the waiver on March 23. In an accompanying statement, a State
Department spokesperson said that:
As the Secretary’s statement makes clear, as the statement we released with regard to her
decision makes clear, we have a huge number of interests and equities at stake in our
relationship with Egypt. This is a strategic partnership; so rather than talking about leverage,
we’re talking about partnership, as we have for all of these years. And as we make clear here,
Egypt itself is changing very fast. We have a new Egypt emerging. So U.S. support in all of its
47
48
“Despite Rights Concerns, U.S. Plans to Resume Egypt Aid,” New York Times, March 15, 2012.
op.cit.
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forms – FMF, ESF in countries around the world – is designed to allow us to support the
partnership that we have with countries and the developments that we want to see in countries in
a more democratic, prosperous, stable, secure direction. 49
FY2013 State and Foreign Operations Appropriations Bills
House (112th Congress; H.R. 5857)—The House bill would have provided the full Administration
request for Egypt of $250 million in ESF and $1.3 billion in FMF. It included a number of specific
directives, including:
49
•
Section 7042 of the bill contains a certification that no funds may be made available
for Egypt unless the Secretary of State certifies to the Committees on
Appropriations that Egypt’s central government is meeting its obligations under the
1979 Egypt-Israel Peace Treaty.
•
The bill also contains a requirement stating that prior to obligations of ESF and
FMF, the Secretary of State shall certify that the Government of Egypt (1) has
completed the transition to civilian government, including holding free and fair
elections; and (2) is implementing policies to protect freedom of expression,
association, and religion, and due process of law. The Secretary of State may waive
these requirements if the Secretary determines and reports to the Committees on
Appropriations that to do so is in the national security interest of the United States.
The bill states that such a determination and report shall include a detailed
justification for such waiver and that the Secretary of State shall consult with the
Committees on Appropriations prior to waiving such requirements.
•
In addition, the Committee on Appropriations must be consulted prior to the transfer
of FMF funds to an interest-bearing account for Egypt. The committee also must be
notified 15 days in advance of the obligation of funds for Egypt.
•
The committee also directs the Secretary of State to submit a report to the
Committees on Appropriations, not later than 90 days after enactment of this act,
detailing the status of human rights within Egypt. The report should include whether
the government of Egypt is providing adequate protection for religious minorities,
including protection of Coptic Christians, their property, and their places of worship.
•
The committee directs the Secretary of State to report to the Committees on
Appropriations, not later than 90 days after enactment of this act, on all assistance
provided under this heading for Egypt from fiscal year 2008 through 2012. The
report should include the following: (1) the ministries, agencies, or instrumentalities
of the government of Egypt that received funding; (2) United States, international,
or Egyptian organizations that received funding; (3) a description of the purpose of
each program, project, or activity; (4) whether each program, project, or activity
complied with mandatory audit requirements; and (5) a description of whether each
program, project, or activity fulfilled its stated purpose.
•
Section 7032 of the bill contains a passage stating that “None of the funds
appropriated or otherwise made available by title III of this Act may be obligated for
direct Government-to-Government assistance if such assistance is to a government
Victoria Nuland Spokesperson, Daily Press Briefing Washington, DC, March 23, 2012
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that is actively and significantly interfering with the operation of civil society
organizations.” This restriction does not specifically refer to Egypt but could
possibly apply to some economic aid to Egypt should its government obstruct
operations of non-governmental organizations.
Senate (112th Congress; S. 3241)—The Senate bill also contained most of the Administration request
for Egypt, though it “reduces assistance for Egypt under ESF by an amount equal to the amount
posted as bail in February 2012 for members of United States NGOs operating in Egypt.” The
Senate bill included the following provisions:
•
“None of the funds appropriated under titles III and IV of this Act and in prior Acts
making appropriations for the Department of State, foreign operations, and related
programs may be made available for assistance for the Government of Egypt unless
the Secretary of State certifies to the Committees on Appropriations that such
government is meeting its obligations under the 1979 Egypt-Israel Peace Treaty.”
•
“The President shall submit to the Committees on Appropriations, concurrent with
the fiscal year 2014 budget request, a comprehensive review of United States
assistance for Egypt, including the strategic purposes and mechanisms for
disbursing such assistance, and specific programs to be conducted in furtherance of
security sector and other reforms.”
•
“Funds appropriated by this act under the heading ‘Foreign Military Financing
Program’ for assistance for Egypt shall be made available for border security
programs in the Sinai, and for purposes related to peacekeeping and disaster
response: Provided, That a portion of such funds estimated to be outlayed during
fiscal year 2013 may, following consultation with the Committees on
Appropriations, be transferred to an interest bearing account for Egypt in the
Federal Reserve Bank of New York: Provided further, That funds appropriated by
this Act under the heading ‘Economic Support Fund’ shall be made available to
promote security sector reform in Egypt, in accordance with section 7034(r) of this
Act.”
•
“Prior to the initial obligation of funds appropriated by this Act for assistance for
Egypt under the heading ‘Foreign Military Financing Program’, the Secretary of
State shall certify to the Committees on Appropriations that the Government of
Egypt is a democratically elected civilian government that is implementing policies
to—(A) provide civilian control over, and public disclosure of, the military and
police budgets; (B) fully repeal the Emergency Law; and (C) protect judicial
independence; freedom of expression, association, assembly, and religion; the right
of political opposition parties, civil society organizations, and journalists to operate
without harassment or interference; and due process of law. The Secretary of State,
after consultation with the Committees on Appropriations, may waive the
requirements of paragraphs (1) and (4) if the Secretary determines and reports to the
Committees on Appropriations that to do so is important to the national security
interest of the United States: Provided, That such determination and report shall
include a detailed justification for such waiver.”
Legislation in the 113th Congress
•
H.R. 276 – a bill that prohibits any funds made available after FY2013 to any
federal department or agency from being used to provide assistance to Egypt.
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•
H.R. 416 – a bill that, among other things, limits specified security and economic
assistance to Egypt unless the Secretary of State certifies to Congress every six
months that the Egyptian government: (1) is not controlled by or under the influence
of a foreign terrorist organization, or that no supporter of a foreign terrorist
organization serves in a policy-making position in the government; (2) has
implemented legal reforms that protect the political, economic, and religious
freedoms and human rights of all citizens and residents of Egypt; (3) is fully
implementing the Israel-Egypt Peace Treaty; and (4) is taking verifiable steps to
destroy the smuggling network and tunnels between Egypt and the Gaza Strip, and
is cracking down on extremist groups in the Sinai Peninsula.
•
S. 201 – a bill that prohibits the U.S. government from licensing, approving,
facilitating, or otherwise allowing the sale, lease, transfer, retransfer, or delivery of
F-16 aircraft, M1 tanks, or other specified defense articles or services to Egypt.
•
S. 207 – a bill that prohibits the U.S. government from allowing the sale, lease,
transfer, retransfer, or delivery of F-16 aircraft, M1 tanks, or certain other defense
articles or services to Egypt until the President certifies to Congress that Egypt has
agreed to: (1) continue to uphold its Camp David Peace Accords commitments, (2)
provide proper security at U.S. embassies and consulates, and (3) end its systematic
exclusion and silencing of all official minority political opposition parties and
engage in dialogue for a power-sharing government with such parties.
•
S.Amdt. 9 to H.R. 325 – an amendment stating that “Notwithstanding any other
provision of law, the United States Government shall not license, approve, facilitate,
or otherwise allow the sale, lease, transfer, retransfer, or delivery of F-16 aircraft,
M1 tanks, or other defense articles or services listed in Category VI, VII, or VIII of
the United States Munitions List to the Government of Egypt.” The Senate failed to
adopt the measure by a vote of 19 for to 79 against.
Table 2. Top 10 recipients of U.S. Foreign Assistance, FY2012 and FY2013 Req.
(in millions)
FY2012
FY2013 Req.
1. Israel
$3,075
1. Israel
$3,100
2. Afghanistan
$2,327
2. Afghanistan
$2,505
3. Pakistan
$2,102
3. Pakistan
$2,228
4. Iraq
$1,683
4. Iraq
$2,045
5. Egypt
$1,557
5. Egypt
$1,563
6. Jordan
$676
6. Jordan
$671
7. Kenya
$652
7. Nigeria
$599
8. Nigeria
$625
8. Tanzania
$571
9. Ethiopia
$580
9. South Africa
$489
10. Tanzania
$531
10. Kenya
$460
Source: Allocation tables provided to CRS by the Department of State, F Bureau. Does not including funding from
independent agencies such as MCC, which, if included, could change the ranking of Tanzania.
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Table 3. U.S. Foreign Assistance to Egypt
($ in millions)
Fiscal Year
Economic
1948-1997
Military
IMET
Total
23,288.6
22,353.5
27.3
45,669.4
1998
815.0
1,300.0
1.0
2,116.0
1999
775.0
1,300.0
1.0
2,076.0
2000
727.3
1,300.0
1.0
2,028.3
2001
695.0
1,300.0
1.0
1,996.0
2002
655.0
1,300.0
1.0
1,956.0
2003
911.0
1,300.0
1.2
2,212.2
2004
571.6
1,292.3
1.4
1,865.3
2005
530.7
1,289.6
1.2
1,821.5
2006
490.0
1,287.0
1.2
1,778.2
2007
450.0
1,300.0
1.3
1,751.3
2008
411.6
1,289.4
1.2
1,702.2
2009
250.0
1,300.0
1.3
1,551.3
2010
250.0
1,300.0
1.9
1,551.9
2011
249.5
1,297.4
1.4
1,548.3
2012
250.0
1,300.0
1.4
1,551.4
Total
31,320.3
41,809.2
Congressional Research Service
44.54
73,174.0
18
Table 4. U.S. Foreign Assistance to Egypt, 1946-1997
($ in millions)
Year
Military
Loan
Total
Military Grant
IMET
Grant
Misc. Econ
Grant
DA Loan
DA Grant
ESF Loan
ESF Grant
PL. 480 I
PL. 480 II
1946
9.6
—
—
—
9.3 Surplus
0.3 UNWRA
—
—
—
—
—
—
1948
1.4
—
—
—
1.4 Surplus
—
—
—
—
—
—
0.1
—
—
—
0.1 Tech
Asst
—
—
—
—
—
—
1952
1.2
—
—
—
—
—
0.4
—
—
—
0.8
1953
12.9
—
—
—
—
—
12.9
—
—
—
—
1954
4.0
—
—
—
—
—
3.3
—
—
—
0.7
1955
66.3
—
—
—
—
7.5
35.3
—
—
—
23.5
1956
33.3
—
—
—
—
—
2.6
—
—
13.2
17.5
1957
1.0
—
—
—
—
—
0.7
—
—
—
0.3
1958
0.6
—
—
—
—
—
0.0
—
—
—
0.6
1959
44.8
—
—
—
—
—
2.0
—
—
33.9
8.9
1960
65.9
—
—
—
—
15.4
5.7
—
—
36.6
8.2
1961
73.5
—
—
—
—
—
2.3
—
—
48.6
22.6
1962
200.5
—
—
—
—
20.0
2.2
20
—
114.0
44.3
1963
146.7
—
—
—
—
36.3
2.3
10
—
78.5
19.6
1964
95.5
—
—
—
—
—
1.4
—
—
85.2
8.9
1965
97.6
—
—
—
—
—
2.3
—
—
84.9
10.4
1966
27.6
—
—
—
—
—
1.5
—
—
16.4
9.7
1967
12.6
—
—
—
—
—
0.8
—
—
—
11.8
1951
CRS-1918
Congressional Research Service
Egypt: Background and U.S. Relations
Overview
Since July 2013, Egypt’s military-backed government, now led by the winner of the 2014
presidential election Abdel Fatah al Sisi,1 has been attempting to establish a political order that some
describe as a partial revival of authoritarian rule. Egyptian authorities appear to have calculated that
their attempts to impose order have enough public support, and that resistance from Islamists and
secular activists can be contained through a combination of coercion, propaganda, and economic
stimulus. Despite some predictions that the military’s campaign against the Muslim Brotherhood
would lead to civil war akin to Algeria during the 1990s, the interim government has restored a
modicum of order, though violence and disorder persist in the Sinai Peninsula and some areas of
mainland Egypt.
Whether Egypt will become more authoritarian under Sisi’s presidency is an open question. Many
observers assert that since the 2011 uprising against former President Hosni Mubarak, Egypt’s
citizens have been less intimidated by the state’s coercive power. According to one author, Egyptian
society is “more connected to the world, more opinionated, daring, and commercially and socially
entrepreneurial. No central power can control such a society for any significant period of time.”2
Others argue that the security forces will or have already reemerged as decisive actors in regulating
civil society, particularly given Egypt’s difficult economic circumstances. Those circumstances also
raise the pressure on those in control of the government to deliver on promises of improvement or
face criticism and the withdrawal of popular support.
Recent U.S. Policy toward Egypt
The military’s crackdown against dissent since ousting the country’s elected president, Muslim
Brotherhood figure Muhammad Morsi, in July 2013, has strained relations with the Obama
Administration and renewed U.S. public debate over the costs and benefits of maintaining strong
bilateral security ties with what some describe as an increasingly undemocratic Egyptian partner. In
Egypt, some elements of the military and political establishment seem to harbor deep-seated
bitterness toward the United States for what they perceive is a lack of American support for what the
military did to “stabilize” the country. The military’s narrative holds that it alone saved Egypt from
civil war, economic ruin, and Islamist totalitarianism.
Overall, there is a marked lack of consensus over the trajectory of U.S. policy toward Egypt. The
United States military, in particular U.S. Central Command (CENTCOM), which considers Egypt an
“anchor state,” 3 still views Egyptian cooperation as vital to U.S. national security interests in the
Middle East. However, a number of observers, including many U.S. democracy and human rights
advocates, argue that U.S. military support for Egypt runs counter to U.S. security interests and/or
democratic values.4 Some of these observers charge that the military’s campaign against Islamists
may ultimately further radicalize their opponents and lead to terrorist blowback against U.S.
1
For a brief profile of newly elected President Sisi, see: http://www.bbc.com/news/world-middle-east-19256730.
“The Forces of Centralisation cannot Recapture Egypt,” Financial Times, February 9, 2014.
3
See Testimony of General Lloyd J. Austin, III., Commander, U.S. Central Command, Committee on House
Appropriations Subcommittee on Defense, March 14, 2014.
4
“Working Group on Egypt Releases Letter to President Obama,” Project on Middle East Democracy, February 3, 2014.
2
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interests.5 They also argue that marginalizing secular and Islamist pro-democracy activists alienates
young, educated individuals who could contribute productively to Egypt’s future.
Key U.S. regional allies such as Israel and Gulf Arab monarchies have sought greater U.S. support
for the Egyptian government. The Israelis have voiced appreciation for recent Egyptian military
efforts to combat weapons smuggling into Gaza and terrorism in the Sinai Peninsula,6 and the Gulf
Arabs have backed Egypt’s crackdown against the Muslim Brotherhood.
The Obama Administration has attempted to craft a policy toward Egypt that seeks a middle ground,
continuing strong military-to-military ties without condoning Egypt’s crackdown against dissent.
President Obama remarked in a May 28 speech at West Point that:
In Egypt, we acknowledge that our relationship is anchored in security interests – from the
peace treaty with Israel, to shared efforts against violent extremism. So we have not cut off
cooperation with the new government. But we can and will persistently press for the reforms
that the Egyptian people have demanded.7
According to Michele Dunne of the Carnegie Endowment for International Peace, “The U.S.
administration keeps trying to split the difference, sending the message that they want to keep up
security cooperation with the Egyptian government but at the same time that they don't approve of
the coup and the massive human rights abuses that have followed.”8 Secretary of State John Kerry
has told Congress that for U.S.-Egyptian cooperation to improve, the Egyptian government needs to
be less heavy-handed against dissent. According to Secretary Kerry:
Egypt is a very vital relationship. It's a quarter of the Arab world. It has always been sort of the
hub of the region, if you will. It faces some enormous challenges right now. And we're well
aware of that. We want this interim transitional government to succeed. We are committed to try
to help make that happen. But they need to help us to help them at the same time, by
implementing some of the reforms that we've been talking with them about, with respect to
inclusivity, journalists, some of the arrests and so forth.9
Some experts believe that in order to advance U.S.-Egyptian relations, each government needs to
better understand the other’s perspective. According to Hussein Ibish, a senior fellow at the
American Task Force on Palestine, “Americans need to register that Islamists are simply not proving
popular in post-dictatorship Arab societies, and that Egypt faces a genuine threat from violent
extremists. And Egyptians need to understand that the United States government is not cheering for
the Muslim Brotherhood, but has legitimate concerns about democracy and human rights.”10
With the election of former Field Marshal and Defense Minister Sisi, U.S. and Egyptian officials
may attempt to “normalize” bilateral relations. Egypt, which is relying heavily on the financial
largesse of the Arab Gulf states and pledges of support from Russia (see additional discussion
5
“Don’t Create a New Al Qaeda,” New York Times, January 6, 2014.
“Congress threatens Showdown over Military Aid to Egypt, Al Monitor, March 17, 2014.
7
Remarks of President Obama, Commencement Address, West Point, New York, May 28, 2014.
8
“Defense: U.S. Apache Delivery Highlights Mixed Messaging On Egypt,” IPS, April 24, 2014.
9
House Committee on Appropriations, Subcommittee on State, Foreign Operations, and Related Programs, Hearing on
Proposed Fiscal 2015 Budget Request for the State Department and Foreign Operations, March 12, 2014.
10
“The US and Egypt begin to Recalculate their Relationship,” The National (UAE), April 29, 2014.
6
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Egypt: Background and U.S. Relations
below), still seeks an American partner, and is hoping that its managed political transition will be
enough to quiet its American critics in and out of government.
Figure 1. Egypt at a Glance
Ultimately, Egypt and the Arab Gulf monarchies want the Administration and Congress not only to
continue foreign assistance to Egypt without additional conditions, but also to do more financially
for a country that has structural economic deficiencies, such as high annual budget deficits, energy
shortages, and high youth unemployment. Other Arab countries, such as Tunisia and Jordan (with
Yemen possibly soon to follow), have received International Monetary Fund (IMF) lending packages
in recent years, and Egypt may seek one as well. The Arab Gulf monarchies want Egypt to return to
the good graces of Western governments so that the larger international community can support
Egypt’s struggling economy.11 To date, Saudi Arabia, Kuwait, and the United Arab Emirates have
pledged over $18 billion in direct loans, fuel subsidies, and grants to the Egyptian government, with
billions more being invested from the private sector in residential housing and commercial real
estate.12 Some reports suggest that these same countries may be preparing to assist Egypt with an
11
12
“Saudi King Sees Egypt Too Big to Fail Under Friendly General,” Bloomberg, January 16, 2014.
See, Economist Intelligence Unit, Country Report Egypt, May 8, 2014.
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Egypt: Background and U.S. Relations
additional $20 billion in aid.13 The IMF and Egypt could begin discussions for a lending program
once presidential and parliamentary elections have been completed. According to Jon Alterman of
the Center for Strategic and International Studies, “While many in the United States seem content to
let Egypt drift into the arms of deep-pocketed Gulf monarchies, the smarter strategy is for the United
States to prioritize finding common ground with those monarchies to steer Egypt in a more
promising direction.”14
Domestic Politics: The Transition Continues
Egypt’s purported transition since the military’s ouster of former President Morsi in July 2013 is
ongoing. With the passing of an amended constitution15 in January 2014 and the election of Sisi as
president, Egypt’s next step in the transitional process will be to hold parliamentary elections.16 The
lower house of Parliament has been disbanded since June 2012. The interim government is currently
drafting a new electoral law to govern parliamentary elections. A draft electoral law would establish
a 600- to 630-seat parliament with three quarters (480) of the seats elected from individual
geographical districts,120 seats elected through electoral lists, and 30 seats set aside for presidential
appointees.
Egypt’s 2014 Presidential Election
According to unofficial estimates, Abdel Fatah al Sisi easily won the 2014 presidential election with 96.9% of the vote
amidst a voter turnout estimated at about 47.4%, a percentage that was lower than Egyptian authorities’ expectations
despite the government’s last-minute and controversial call to extend voting an extra day. The runner-up, Hamdeen
Sabahi, won 3% of the ballot. In order to increase turnout, authorities granted public workers a holiday, threatened to
fine non-voters, and shut down some public shopping centers. Voter turnout in the 2012 election was 52%. Many
observers attribute the lower than expected turnout to a combination of factors, including voter apathy and a boycott by
some Islamist supporters of the Muslim Brotherhood. The European Union Election Observation Mission, which
observed the election, stated that “The Presidential Election was administered in line with the law, in an environment
falling short of constitutional principles.”17 The White House issued a statement on the election, saying “We note that
domestic and international observers concluded in their preliminary statements that Egypt’s Presidential Electoral
Commission (PEC) administered the election professionally and in line with Egyptian laws....We also share concerns
raised by observation groups about the restrictive political environment in which this election took place.”18
Sisi is likely to attempt to consolidate state power around his rule. In late March, when he resigned
as both minister of defense and field marshal, he appointed General Sedki Sobhi as the new defense
13
“Saudi Arabia and UAE readying big aid package for Egypt,” Economist Intelligence Unit, June 2, 2014.
“A Partnership for Egypt,” Middle East Notes and Comment - CSIS, May 21, 2014.
15
In January 2014, 98% voters (turnout was around 38%) approved an amended constitution in a public referendum that
was widely criticized by various non-governmental organizations for being held in a “constrained campaign environment.”
See Democracy International’s Findings in its Referendum Observation Mission, available online at:
http://democracyinternational.com/news/press-release-findings-di-egyptian-referendum-observation-mission.
16
The new Egyptian constitution (Article 230) specifies that either presidential or parliamentary elections should follow
the adoption of the constitution and that “procedures” to begin these elections should begin no later than 90 days after the
constitution comes into effect. In March 2014, the Interim Government passed a Presidential Elections Law, which among
other things, establishes a Presidential Elections Commission (PEC) to run elections. For a description of the electoral law,
see: http://www.atlanticcouncil.org/blogs/egyptsource/egypt-s-presidential-elections-law-a-breakdown.
17
European Union Election Observation Mission, Arab Republic of Egypt - Presidential Election - 26/27 May 2014, Press
Release, May 29, 2014.
18
The White House, Office of the Press Secretary, Statement by the Press Secretary on the Presidential Election in Egypt,
June 04, 2014.
14
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minister. Lieutenant General Mahmoud Hegazy replaced Sobhi as army chief of staff. According to
Michael Collins Dunn of the Middle East Institute, “the new Defense Minister and Chief of Staff are
men close to Sisi and somewhat in his image (the new Chief of Staff's daughter is married to Sisi's
son).”19 With his relations with the military leadership seemingly secure, the incoming president
may focus on broadening his support in the non-military segments of society (e.g., business
community, rural landowners, secular political parties, Salafists) without loosening his grip on
power. One major challenge he may face in pursuing this goal —based on the experience of former
President Mubarak’s last weeks in power—will be in deploying state security services (Interior
Ministry and intelligence personnel) effectively without decisively alienating key constituencies
(Interior Ministry, intelligence services).
The Crackdown against the Muslim Brotherhood and non-Islamist
Groups
For nearly a year, Egypt’s security apparatus (often referred to as the “Deep State20”), a broad term
meant to encompass the conventional military, internal security and police, and intelligence
agencies, has reversed personal and political freedoms gained in the wake of the 2011 “revolution.”
According to many observers, this campaign has been conducted with a degree of popular support
from Egyptians apparently frustrated with the disorder of the post-Mubarak period. According to
Egypt expert H.A. Hellyer, “When given the choice between a democratic system that may or may
not deliver stability in the short or medium term and a system that is backed by an extremely strong
military institution, I think the majority of Egyptians have unfortunately decided that the latter is
what they want.”21
Egypt’s Islamists: Where do they go from here?
Since the July 2013 “coup,” the Egyptian state has thoroughly weakened the Muslim Brotherhood as a functioning
organization, and many observers have questioned what Islamists will do in response over time. According to one report,
an estimated twenty percent of youth Brotherhood members say they believe anti-state violence may be their only
option.22 One expert suggests that some Brotherhood members are using social media to organize campaigns of “lowerprofile” violence against authorities using flaming aerosol cans and Molotov cocktails (See, “Egypt’s Invisible Insurgency,”
New Republic, March 19, 2014). Still, those Brotherhood leaders who remain free or outside Egypt continue to claim
that the organization itself is committed to peaceful popular protests against a government they have deemed to be
“illegitimate.” As Egypt’s political process proceeds, it is difficult to ascertain whether the Brotherhood’s campaign is
gaining any popular support, though Egyptian Islamists claim that if they show patience and persistence, the public will
become more supportive of their cause. According to one Brotherhood member referring to a long history of Egyptian
government repression, “As the Brotherhood, we've been psychologically prepared for the long run.”23 Egypt’s Islamist
political scene, however, has other actors. Salafist political parties, such as the Nour Party, have quietly supported the
interim government, claiming that “Our policy is that we govern, we do not rule.”24 The performance of Salafists will be
closely watched in upcoming parliamentary elections.
The interim government’s crackdown has to date primarily targeted the Muslim Brotherhood and its
supporters. The government has formally disbanded the organization, designating it as an illegal
19
“Band of Brothers: A Look at Egypt's New High Command,” Middle East Institute Editor’s Blog, March 28, 2014
http://www.pbs.org/wgbh/pages/frontline/foreign-affairs-defense/egypt-in-crisis/the-deep-state-how-egypts-shadowstate-won-out/
21
“In Egypt, many Shrug as Freedoms Disappear,” Washington Post, January 8, 2014.
22
“Egyptian Brotherhood Split on using Force as Sisi poised to Rule,” Reuters, May 19, 2014.
23
“Egypt's Brotherhood Entrenched for War of Attrition,”Agence France Presse, May 21, 2014.
24
“Salafist Nour Party leader: The Brotherhood committed political suicide,” Al Sharq al Awsat, January 29, 2014.
20
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Egypt: Background and U.S. Relations
terrorist organization in December 2013. Most Brotherhood leaders are imprisoned and the trial of
former President Morsi and other top Brotherhood leaders is ongoing. There are no verifiable figures
on the death toll since July 2013, though the Carnegie Endowment for International Peace claims
that more than 2,500 Egyptians (protestors and police) have been killed and more than 17,000 have
been wounded.25 Human Rights Watch claims that more than 1,000 protesters have been killed since
July 3, 2013. Various press estimates suggest that since July 2013, 16,000 to 19,000 people, many of
whom are Brotherhood members or supporters, have been arrested. Numerous countries and
international organizations denounced a March 2014 court ruling that sentenced 529 Egyptians to
death in the killing of a policeman. A month later, the same judge sentenced an additional 683
Egyptians to death for assaulting a police station and killing a police officer in 2013.26 Some foreign
governments also have denounced the ongoing trial of journalists for Al Jazeera who are accused of
spreading false news in support of the Brotherhood and former President Morsi.
Egyptian authorities also have sought to
suppress expressions of dissent from nonIslamist protestors. In November 2013, the
government replaced the state of emergency
then in effect with what is informally
referred to as the “protest law.” This law
bans public gatherings of more than ten
people without approval from the police,
which must receive prior notification of any
planned gathering. Most importantly, the law
authorizes police to ban any protest deemed
a threat to “public order.” Some of the
leaders of the 2011 popular movement
against the Mubarak regime have publicly
opposed this law. In December 2013, Ahmed
Maher, Ahmed Douma, and Mohammed
Adel were convicted of violating the protest
law and they have remained imprisoned
despite appeals.
Figure 2. Recent Pew Public Opinion Survey
in Egypt
April 2014
Internal Violence and Conflict
in the Sinai
Source: http://www.pewglobal.org/2014/05/22/one-yearSince the military’s July 2013 ouster of
after-morsis-ouster-divides-persist-on-el-sisi-muslimformer President Morsi, Egypt’s tumultuous
brotherhood/
post-Mubarak period has become even more
violence-plagued, though instability has not reached levels seen elsewhere in the region, such as in
Syria, Libya, Lebanon, or Iraq. Nevertheless, Egypt’s suppression of Brotherhood sympathizers
appears to have triggered counterattacks by Islamist groups (some of which appear to be more
accepting of violence as a means of political action than the Brotherhood) against state security.
25
See, http://carnegieendowment.org/2014/03/24/egypt-s-unprecedented-instability-by-numbers/h5j3
Most of those sentenced were tried in absentia and, upon recommendation from Egypt’s Grand Mufti, the judge has
commuted most of his earlier sentences to life in prison. Nevertheless, many Western observers believe that the sentences
have significantly damaged the Egyptian judiciary’s reputation for independence and impartiality.
26
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Egypt: Background and U.S. Relations
Throughout the 1990s, Egypt faced an Islamist insurgency that targeted security forces, high-level
officials, and foreign tourists; in recent months, it would seem that elements of that insurgent
campaign have resurfaced not only in the Sinai Peninsula (see below) but in the Egyptian mainland.
In late April, a car bomb killed an Egyptian police brigadier general in the Western Cairo suburb of
October 6 City.
One of the biggest concerns for Egyptian and regional stability over the past several years has been
the Sinai Peninsula, where a mix of radicalized indigenous Bedouin Arabs, foreign fighters, and
Palestinian militants from neighboring Gaza have formed terrorist cells and targeted both Egypt and
Israel. Combating terrorism in the Peninsula is complicated by limitations Egypt faces in fully
enforcing its rule over the area.27 The 1979 Israeli-Egyptian peace treaty caps the number of soldiers
that Egypt can deploy in the Sinai, subject to the parties’ ability to negotiate changes to Egyptian
deployments as circumstances necessitate.28
Since the violent police crackdown against former President Morsi’s mostly Islamist supporters in
mid-August as they protested his ouster, Islamist radical groups in the Sinai have waged an
insurgency against the security services. Militants from an array of loosely organized groups, some
of which use tactics and claim ideologies reminiscent of Al Qaeda,29 have attacked police and army
checkpoints and facilities, employing terrorist and guerilla warfare tactics.
27
Since Israel returned control over the Sinai to Egypt in 1982, the area has been partially demilitarized per the terms of
the 1979 Israeli-Egyptian Peace Treaty, and the Sinai has served as an effective buffer zone between the two countries. The
Multinational Force and Observers, or MFO, are deployed in the Sinai to monitor the terms of the Israeli-Egyptian peace
treaty.
28
Article IV (4) states, “The security arrangements provided for in paragraphs 1 and 2 of this Article may at the request of
either party be reviewed and amended by mutual agreement of the Parties.”
29
There is no known precise number of Islamist fighters operating in the Sinai, and estimates vary widely from 500 to
perhaps as many as 5,000. Press reports describing Sinai-based militant groups name the following organizations: AlTawhid Wal Jihad, Mujahedeen Shura Council, Al Furqan Brigade, Ansar Bayt al Maqdis, Ansar al Jihad, Ajnad Misr
(Soldiers of Egypt) and Jund al Islam (Soldiers of Islam).
Congressional Research Service
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Egypt: Background and U.S. Relations
U.S. –Designated Sinai-based Terrorist Group: Ansar Bayt al Maqdis
Source: Image of Banner from Open Source Center
The most active terrorist group in the Sinai Peninsula is called Ansar Bayt al Maqdis or ABM (Companions or Supporters of
Jerusalem). On March 28, the U.S. State Department designated ABM as a Foreign Terrorist Organization (FTO) and as a
Specially Designated Global Terrorist entity.30 According to the State Department press release:
ABM is responsible for attacks on Israel and security services and tourists in Egypt. ABM -- who shares some aspects of AQ
ideology, but is not a formal AQ affiliate and generally maintains a local focus -- was responsible for a July 2012 attack against
a Sinai pipeline exporting gas to Israel. In August 2012, ABM claimed responsibility for a rocket attack on the southern Israeli
city of Eilat, and in September 2012, ABM militants attacked an Israeli border patrol, killing one soldier and injuring another.
In October 2013, ABM claimed responsibility for a suicide bombing targeting the South Sinai Security Directorate in el Tor,
which killed three people and injured more than 45. In January 2014, ABM successfully downed a military helicopter in a
missile attack, killing five soldiers on board, and claimed responsibility for four attacks involving car bombs and hand
grenades in Cairo, which left six people dead and over 70 wounded, many of them civilian bystanders. ABM has also targeted
government officials, including the September 2013 attempted assassination of the Egyptian Interior Minister, and the January
2014 assassination of the head of the Interior Minister's technical office. In February 2014, ABM expanded its targets to
include foreign tourists, and claimed responsibility for the bombing of a tour bus in the Sinai Peninsula, killing the Egyptian
driver and three South Korean tourists.31
As of late May, it would appear that while violence in the Sinai Peninsula continues, the pace and scale of terrorist attacks has
somewhat diminished. Many U.S. observers are concerned that Egypt’s security operations in northern Sinai may be too heavyhanded and are not addressing the long term needs of the local population. According to one unnamed U.S. counter-terrorism
official, “We fear that the Egyptian government's heavy-handed tactics may be fueling recruitment for ABM or other extremist
groups in the region.... These groups are going to only get stronger if the response from the Egyptian government isn't more
calculated and more discriminating. This is a point that we have made at multiple levels to the Egyptian government.”32
30
In the Matter of the Designation of Ansar Bayt al Maqdis, as a Specially Designated Global Terrorist Pursuant to Section
1(b) of Executive Order 13224, as Amended, State Department Press Releases And Documents, April 10, 2014.
31
U.S. Department of State, “Terrorist Designation of Ansar Bayt al Maqdis,” Office of the Spokesperson, April 9, 2014.
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The Egyptian military has responded by launching a counter-offensive, particularly in northern
Sinai, in order to root out militants who have taken refuge in villages and in the rugged Sinai terrain.
The army has deployed Apache helicopters, tanks, and armored personnel carriers into demilitarized areas33 with Israeli permission and in coordination with the Multinational Force of
Observers (MFO), which monitors force deployments. In addition, Egyptian forces have displayed a
greater commitment since the ouster of Morsi to destroying smuggling tunnels that traverse the
Egyptian-Gaza border and establishing a buffer zone that would reduce smugglers’ abilities to
reestablish operations and evade official countermeasures. Reports from inside the Gaza Strip
suggest that consumer prices have risen dramatically there due to the curtailment of smuggling. How
enduring these operations will be, and how they might be coupled with related economic and
political measures, remains uncertain, and is one area of interest for U.S. policy makers.
The Economy
Egypt’s economy is barely growing; economists project perhaps 2% growth for the current Egyptian
fiscal year, an amount that just exceeds the country’s annual population growth rate.34 For Egypt, the
good news is that the economy is no longer contracting, as some foreign direct investment has
returned, and foreign currency reserves are no longer dwindling, stabilizing at $17.4 billion as of
April 2014. They had been at $36 billion before unrest began in 2011.
Figure 3. Egypt’s Real GDP Growth
Source: Economist Intelligence Unit
However, the government remains saddled by a growing public and external debt. Total public debt
as a percentage of GDP is hovering between 89% and 93%, and the country’s external debt has
(...continued)
32
“U.S. worries its Aid to Egypt may be Misdirected,” Los Angeles Times, April 30, 2014.
33
The areas are de-militarized pursuant to Egypt’s 1979 peace treaty with Israel.
34
http://data.worldbank.org/indicator/SP.POP.GROW
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grown to somewhere between $49 billion and $56 billion. According to one financial analyst,
“Egypt is spending more than it can borrow given the low gross domestic product growth rates...It's
about having faith that you can repay... Egypt would have to grow around 5 or 6 percent in the next
three years and that's highly unlikely. It hasn't yet reached a dangerous point, but it's on a very
dangerous trajectory.”35 Almost a quarter of the Egyptian budget is dedicated to paying the interest
on Egypt’s debt.
Some analysts fear that Egypt, even with Gulf aid, could be approaching the point of insolvency
since the government continues policies that have created ever-widening annual deficits.36
Government subsidies of food and fuel,37 all of which Egypt is a net importer of, account for
somewhere between 20 and 29 percent of state spending. The interim government has launched
several stimulus packages and has actually increased state salaries for an already large public
payroll. When asked in a May 2014 television interview what kinds of economic reforms he would
champion as president, Abdel Fatah al Sisi remarked that, “The subsidies can't be removed suddenly.
People will not tolerate that.” With low growth projected and a tax system that does not generate
adequate revenue, Egypt may seek additional support from Gulf states in the form of outright grants
rather than loans.
In May 2014, the Financial Times reported that Israeli natural gas companies may be preparing to
export liquefied natural gas to Egypt.38 Egypt currently owes nearly six billion dollars to foreign gas
companies.
Foreign Relations
The Palestinians - Since the July 2013 military takeover, Egyptian authorities have reversed the
Morsi government’s policy of backing Palestinian Islamist group Hamas (a Muslim Brotherhood
offshoot). The current Egyptian rulers see Hamas as a security threat that has aided the Muslim
Brotherhood and terrorist groups in the Sinai. Over the past year, the Egyptian military has more
forcefully sought to close the underground smuggling trade beneath the Gaza-Egyptian border that
Hamas authorities rely upon for supplies and tax revenue. The interim government also has banned
Hamas from operating inside Egypt, and the courts have authorized seizures of Hamas’ assets inside
Egypt. Although Egyptian military officials have always sought to balance the need to appear loyal
to the Palestinian cause without empowering Hamas, this more aggressive containment policy
against Hamas has been viewed as effective in contributing to Hamas’ political isolation (other
factors such as Hamas’ falling out with the Asad regime in Syria also have contributed to the group’s
waning power). For months, observers speculated whether Egyptian pressure against Hamas would
force it to reconsider reunification of the West Bank and Gaza; indeed, some observers see it as a
partial explanation for the reunification agreement that was announced last month.
35
“Debt casts Deepening Shadow over Egypt's Economic Recovery,” Reuters, March 20, 2014.
Steven Cook, “Egypt's Solvency Crisis,” Contingency Planning Memorandum No. 20, Council on Foreign Relations,
April 2014.
37
The government currently owes $5.7 billion to foreign oil companies, and fuel shortages over the past few years have
depressed economic growth and led to periodic blackouts, though fuel shipments from the Gulf have somewhat improved
supply.
38
“Israel gas Supply Deals to Egypt and Jordan draw Closer,” Financial Times, May 21, 2014.
36
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The April 23 “unity” deal between rival Palestinian factions Fatah and Hamas39 may be viewed from
Egypt’s perspective as a positive diplomatic development. According to one unnamed Egyptian
military official, “Our main goal is to secure our borders and to eliminate any kind of smuggling.
But also as a side-effect, we need to see the PA in charge of the Gaza Strip. It's our business to see
the PA run Gaza, to have somebody to deal with . . . we don't have a relationship with Hamas.”40
Libya – As formerly retired Libyan Major General Khalifa Haftar wages a campaign to rid Libya of
various Islamist militias, many observers have compared his actions to those of President Sisi,
raising questions as to Egypt’s role in the conflict in neighboring Libya. To date, Egyptian media
have adopted a supportive tone toward Haftar, and Sisi during his presidential campaign noted that
Islamist fighters and unsecured weapons in Libya were becoming a major security threat to Egypt.
Russia – In recent months, Egypt and Russia have held several wide ranging discussions on the
expansion of military and economic ties41 in an effort that many believe is an Egyptian attempt to
demonstrate to the U.S. government that Egypt has alternatives when it comes to military-to-military
partnerships. The Egyptian armed forces do maintain Russian tanks and other equipment, though
according to the Defense Industry Daily, their high end inventory consists of almost entirely U.S.origin systems.42 Reportedly, Egypt and Russia may be discussing an arms deal involving the sale of
Russian MiG 29 fighters, anti-aircraft systems, and anti-tank missiles worth potentially $2 billion.
How Egypt would finance such a purchase is not known, though some sources are suggesting that
the Arab Gulf states would provide funding. Some Israeli press reports have suggested that the
Russian government would even consider making Egypt the first foreign customer eligible to
purchase the more advanced MiG 35. Overall, given the amount (force structure, officer training,
weapons purchases) invested in U.S.-Egyptian military cooperation over a 40-year period, it is
unclear how truly willing or able either side is to seek alternatives. According to Minister for
International Cooperation and Planning Ziad Bahaa El-Din, Egypt’s attempt to expand ties
elsewhere should not be perceived as a “zero-sum game.”43
U.S. Foreign Assistance to Egypt and the FY2014
Appropriations Act
For fiscal year 2014, Congress has appropriated $1.3 billion in Foreign Military Financing and $250
million in Economic Support Funds to Egypt; however, the delivery of assistance is subject to
certain conditions, such as:
•
FY2014 funds may only be made available if the Secretary of State certifies that
Egypt is sustaining the strategic relationship with the United States and is meeting
39
Hamas is an Islamist group designated by the U.S. government and many other Western governments as a terrorist
organization.
40
“Tide of Events forces Gaza's Rulers to Negotiate, The Guardian (UK), April 26, 2014.
41
Egypt is a major importer of Russian wheat and it may be seeking discounts on the price of future wheat import deals. In
addition, both countries may be discussing long term plans to export Russian liquefied natural gas to Egypt. According to
one report, “While a deal could provide mutual benefit, Moscow will have to seriously weigh the significant financial costs
of subsidizing Egypt's ailing economy and military.” See, “Russia Finds a Potential Partner in Egypt,” Stratfor, April 17,
2014.
42
“All Over Again: Egypt Looks Beyond the USA for New Arms,” Defense Industry Daily, November 14, 2013.
43
“Egypt Says Tension with U.S. a ‘Glitch’ in Storied Ties,” Bloomberg.com, November 14, 2013.
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Egypt: Background and U.S. Relations
its obligations under the 1979 Egypt-Israel Peace Treaty. The certification was made
in April 2014.
•
FY2014 funds are provided to Egypt “notwithstanding any other provision of law,”
an exemption that would allow aid to continue despite Section 7008 of P.L. 113-76
which prohibits foreign assistance to a country whose elected head of government is
deposed by military coup d'etat or decree. The Administration specifically requested
Congress to include notwithstanding authority for Egypt in executive-legislative
branch negotiations over the FY2014 appropriations bill.
•
FY2014 military and economic aid to Egypt is divided into two tranches: $975
million may be released after the Secretary of State certifies Egypt has held a
constitutional referendum, and is taking steps to support a democratic transition.
$576.8 million may be released after the Secretary of State certifies that Egypt has
held parliamentary and presidential elections, and that a newly elected Government
of Egypt is taking steps to govern democratically.
•
However, if the Secretary of State cannot certify the conditions stated above, then
military aid may be made available at the minimum rate necessary to continue
existing contracts, except that defense articles and services from such contracts shall
not be delivered until the certification requirements are met. Economic aid also may
be made available without certification, provided that such funds may not be made
available for cash transfer assistance or budget support unless the Secretary of State
certifies to the appropriate congressional committees that the Government of Egypt
is taking steps to stabilize the economy and implement economic reforms.
Moreover, FY2014 funds may be made available without certification provided that
they are used for counterterrorism, border security, and nonproliferation programs in
Egypt, and for development activities in the Sinai.
As described below, in late April 2014, the Administration announced that it intended to obligate
$650 million in FY2014 FMF to Egypt. This was due to the fact that U.S. holding accounts for FMF
to Egypt were running low on funds, and payments to U.S. defense contractors for defense
equipment purchased in prior years were due. However, on April 29, Senator Patrick Leahy placed
an informal “hold”44 on the $650 million notification, and it is unclear how the U.S. government will
pay the private U.S. defense companies making equipment for the Egyptian military. According to
one unnamed official, “Going back to the status quo of the past 30 years is not really an option that's
available to us.”45
Chronology: Recent U.S. Action on Foreign Assistance to Egypt
Date
Event
January 17, 2014
The President signs into law P.L. 113-76, the FY2014 Consolidated Appropriations Act.
Under the law, Congress provides $1.3 billion in FMF and $250 million in ESF, though
the full release of the funds is conditioned on certifications that first must be made by
the Secretary of State.
44
Congressional holds on foreign aid are not legally binding on the executive branch. However, since the late 1970s/early
1980s, successive Administrations have generally deferred to holds placed by Members of pertinent committees. This is
part of a process by which the executive branch consults with Congress to provide it with information or otherwise address
committees’ concerns prior to obligating funds subject to a hold.
45
“Amid Egypt rights abuses, U.S. stalls over more military aid,” Reuters, May 20, 2014.
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Egypt: Background and U.S. Relations
March 4, 2014
The Administration releases its FY2015 Congressional Budget Justification, which seeks
$1.3 billion in FMF for Egypt, but only $200 million in ESF, or $50 million below the
appropriation for the last six fiscal years.
April 22, 2014
The Obama Administration announces that it will resume delivering ten Apache
helicopters to Egypt of which it had suspended delivery in October 2013. In addition,
the Administration certifies to the Appropriations Committees, as mandated in the
FY2014 Appropriations Act, that Egypt is “sustaining the strategic relationship with the
United States; and meeting its obligations under the 1979 Egypt-Israel Peace Treaty.”
However, Secretary of State John Kerry, in a phone call to the Egyptian Foreign
Minister, indicated that he is not yet able to certify that Egypt is taking steps to support
a democratic transition, as required by P.L. 113-76, in order to release two separate
tranches of military aid.
April 25, 2014
The State Department notifies Congress of its intent to obligate $650 million in
FY2014 FMF to Egypt under the authorities provided to it by Congress in Section
7041(a)(3) and (a)(5) of P.L. 113-76.
April 28, 2014
An Egyptian judge, who a month earlier had sentenced 529 men to death for killing a
police offer, sentences another 683 men to death for a similar crime.
April 29, 2014
Senator Patrick Leahy stated that “I am extremely disturbed by the Egyptian
Government’s flouting of human rights and appalling abuse of the justice system, which
are fundamental to any democracy. I am not prepared to sign off on the delivery of
additional aid for the Egyptian military until we have a better understanding of how the
aid would be used, and we see convincing evidence that the government is committed
to the rule of law.”
May 13, 2014
In report language accompanying H.R. 4435, the National Defense Authorization bill
for FY2015, House Armed Services Committee Members note their support for the
President's decision to provide Apache aircraft to the Government of Egypt. According
to the report, “The committee further believes that the United States should provide
necessary security assistance to the Government of Egypt, specifically focused on areas
of mutual security interest. The committee remains concerned that if the United States
does not engage through security assistance with the Government of Egypt and the
Egyptian military, then other countries, such as the Russian Federation, may fill this gap,
which would work at cross-purposes with vital U.S. national security interests.... The
committee is concerned by reports that there may have been human rights violations
that have occurred in Egypt. The committee encourages the next President of Egypt to
address the economic and political needs of the Egyptian people, including the
protections for individual freedom and human rights reflected in the new Egyptian
constitution.”
May 21, 2014
In an interview in Brussels, seemingly intended to allay some observers’ concerns,
General Martin Dempsey, Chairman of the U.S. Joint Chiefs of Staff, remarks that he
believes the Egyptian military would use U.S. weapons for their intended purpose and
that the U.S. military has oversight mechanisms in place to ensure Egyptian compliance
with U.S. law. According to General Dempsey, “If they were to use them for purposes
that violated the end-use agreement, then we have the ability to interdict the supply
chain and that system would not be much use to them any longer.”46
June 3, 2014
According to one press report, ten Apache helicopters remain in storage six weeks
after administration announced their release to the Egyptian government.47 According
to one unnamed State Department official, “The aircraft are in storage at Fort Hood,
Texas....We are making decisions with respect to our assistance to Egypt in
consultation with Congress, and are working to determine when the Apaches would
be shipped.”
46
47
“U.S.-Egypt Military ties will Depend on Egypt's Actions -U.S. general,” Reuters, May 21, 2014.
“Obama Administration holding up Apache Helicopters to Egypt,” Al Monitor, June 3, 2014.
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Figure 4. U.S. Foreign Assistance to Egypt
$s in millions
Source: Created by CRS.
a.
In FY2009, Egypt received $200 million in ESF from P.L. 111-8, the FY2009 Omnibus Appropriations Act. It
then received an additional $50 million in ESF from P.L. 111-32, the FY2009 Supplemental Appropriations
Act.Click here and type table note
b.
Reduced due to sequestration.
Congressional Research Service
14
Table 1. U.S. Foreign Assistance to Egypt, 1946-1997
($ in millions)
Year
Military
Loan
Total
Military Grant
IMET
Grant
Misc. Econ
Grant
DA Loan
DA Grant
ESF Loan
ESF Grant
PL. 480 I
PL. 480 II
1946
9.6
—
—
—
9.3 Surplus
0.3 UNWRA
—
—
—
—
—
—
1948
1.4
—
—
—
1.4 Surplus
—
—
—
—
—
—
0.1
—
—
—
0.1 Tech
Asst
—
—
—
—
—
—
1952
1.2
—
—
—
—
—
0.4
—
—
—
0.8
1953
12.9
—
—
—
—
—
12.9
—
—
—
—
1954
4.0
—
—
—
—
—
3.3
—
—
—
0.7
1955
66.3
—
—
—
—
7.5
35.3
—
—
—
23.5
1956
33.3
—
—
—
—
—
2.6
—
—
13.2
17.5
1957
1.0
—
—
—
—
—
0.7
—
—
—
0.3
1958
0.6
—
—
—
—
—
0.0
—
—
—
0.6
1959
44.8
—
—
—
—
—
2.0
—
—
33.9
8.9
1960
65.9
—
—
—
—
15.4
5.7
—
—
36.6
8.2
1961
73.5
—
—
—
—
—
2.3
—
—
48.6
22.6
1962
200.5
—
—
—
—
20.0
2.2
20
—
114.0
44.3
1963
146.7
—
—
—
—
36.3
2.3
10
—
78.5
19.6
1964
95.5
—
—
—
—
—
1.4
—
—
85.2
8.9
1965
97.6
—
—
—
—
—
2.3
—
—
84.9
10.4
1966
27.6
—
—
—
—
—
1.5
—
—
16.4
9.7
1967
12.6
—
—
—
—
—
0.8
—
—
—
11.8
1951
CRS-15
Year
Military
Loan
Total
Military Grant
IMET
Grant
Misc. Econ
Grant
DA Loan
DA Grant
ESF Loan
ESF Grant
PL. 480 I
PL. 480 II
1972
1.5
—
—
—
—
1.5
—
—
—
—
—
1973
0.8
—
—
—
—
—
—
—
—
—
0.8
1974
21.3
—
—
—
—
—
—
—
8.5
9.5
3.3
1975
370.1
—
—
—
—
—
—
194.3
58.5
104.5
12.8
1976
464.3
—
—
—
—
—
5.4
150.0
102.8
201.7
4.4
TQ
552.5
—
—
—
—
—
—
429.0
107.8
14.6
1.1
1977
907.8
—
—
—
—
—
—
600.0
99.2
196.8
11.7
1978
943.2
—
—
0.2
0.1 Narc.
—
—
617.4
133.3
179.7
12.5
1979
2,588.5
1,500
—
0.4
—
—
—
250.0
585.0
230.7
22.4
1980
1,167.3
—
—
0.8
—
—
—
280.0
585.0
285.3
16.1
1981
1,681.2
550
—
0.8
—
—
—
70.0
759.0
272.5
28.9
1982
1,967.3
700
200.0
2.4
—
—
—
—
771.0
262.0
31.9
1983
2332.0
900
425.0
1.9
—
—
—
—
750.0
238.3
16.8
1984
2,470.8
900
465.0
1.7
—
—
—
—
852.9
237.5
13.7
1985
2,468.7
—
1,175.0
1.7
—
—
—
—
1,065.1
213.8
13.2
1986
2,539.1
—
1,244.1
1.7
—
—
—
—
1,069.2
217.5
6.6
1987
2,317.0
—
1,300.0
1.8
—
—
—
—
819.7
191.7
3.9
1988
2,174.9
—
1,300.0
1.5
—
—
—
—
717.8
153.0
2.6
1989
2,269.6
—
1,300.0
1.5
—
—
1.5
—
815.0
150.5
1.2
1990
2,397.4
—
1,294.4
1.6
—
—
—
—
898.4
203.0
—
1991
2,300.2
—
1,300.0
1.9
—
—
—
—
780.8
165.0
52.5
1992
2,235.1
—
1,300.0
1.8
—
—
—
—
892.9
40.4
—
CRS-2016
Year
Total
Military
Loan
Military Grant
IMET
Grant
Misc. Econ
Grant
DA Loan
DA Grant
ESF Loan
ESF Grant
PL. 480 I
PL. 480 II
1993
2,052.9
—
1,300.0
1.8
—
—
—
—
747.0
—
4.1
1994
1,868.6
—
1,300.0
0.8
—
—
—
—
561.6
35.0
6.2
1995
2,414.5
—
1,300.0
1.0
—
—
0.2
—
1,113.3
—
—
1996
2,116.6
—
1,300.0
1.0
—
—
—
—
815.0
—
0.6
1997
2,116.0
—
1,300.0
1.0
—
—
—
—
815.0
—
—
Total
45,669.4
4,550
17,803.5
27.3.0
11.2
80.7
82.8
2,620.7
15,923.8
4,114.3
455.1
Notes: Totals may not add due to rounding. No U.S. aid programs for years 1947, 1949, 1950, 1968, 1969, 1970, and 1971. P.L. 480 II Grant for 1993 includes $2.1
million in Sec.Section 416 food donations.
TQ = Transition Quarter; change from June to September fiscal year
* = less than $100,000
IMET = International Military Education and Training
UNRWA = United Nations Relief and Works Agency
Surplus = Surplus Property
Tech. Asst. = Technical Assistance
Narc. = International Narcotics Control
DA = Development Assistance
ESF = Economic Support Funds
PL 480 I = Public Law 480 (Food for Peace), Title I Loan
PL 480 II = Public Law 480 (Food for Peace), Title II Grant
CRS-2117
Egypt: Background and U.S. Relations
Author Contact Information
Jeremy M. Sharp
Specialist in Middle Eastern Affairs
jsharp@crs.loc.gov, 7-8687
Congressional Research Service
2218