Egypt: Background and U.S. Relations
Jeremy M. Sharp
Specialist in Middle Eastern Affairs
February 4, 2011
Congressional Research Service
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Egypt: Background and U.S. Relations

Summary
This report provides an overview of U.S.-Egyptian relations, Egyptian politics, and U.S. foreign
aid to Egypt. Major public unrest transpiring in Egypt and elsewhere in the Arab world in recent
weeks raises challenging policy questions for the United States government and the 112th
Congress. U.S. policy toward Egypt has long been framed as an investment in regional stability,
built primarily on long-running military cooperation and sustaining the March 1979 Egyptian-
Israeli peace treaty. Successive U.S. Administrations have viewed Egypt’s government as a
moderating influence in the Middle East. At the same time, there have been increasing U.S. calls
for Egypt to democratize. In recent years, congressional views of U.S.-Egyptian relations have
varied. Many lawmakers have viewed Egypt as a stabilizing regional force, but some members
have argued for the United States to pressure Egypt’s government to implement political reforms,
improve human rights, and take a more active role in reducing Arab-Israeli tensions. Those
concerns, in addition to economic frustration, are now driving the most significant public unrest
in Egypt in a generation. The Obama Administration has called on the Egyptian government to
respect the basic rights of protestors and has expressed concern about violence, while calling for a
meaningful transition toward more democratic governance to begin immediately.
U.S. policy makers are now grappling with complex questions about the future of U.S.-Egypt
relations and these debates are likely to influence consideration of appropriations and
authorization legislation in the 112th Congress. The United States has provided Egypt with an
annual average of $2 billion in economic and military foreign assistance since 1979. In FY2010,
the United States provided Egypt with $1.552 billion in total assistance. Congress appropriated
FY2010 aid to Egypt in two separate bills: P.L. 111-117, the Consolidated Appropriations Act,
2010, included $1.292 billion in economic and military assistance; and P.L. 111-32, the
Supplemental Appropriations Act, FY2009, contained $260 million in FY2010 military
assistance. Under P.L. 111-322, the Obama Administration can provide Egypt aid for FY2011 at
FY2010 levels until March 4, 2011, or the passage of superseding FY2011 appropriations
legislation. For FY2011, the Obama Administration is seeking $1.552 billion in total assistance,
the exact same amount as the previous fiscal year. The Administration’s request includes $1.3
billion in military assistance and $250 million in economic aid. Some Members of Congress are
advocating for a delay or reversal in U.S. assistance policy, while others have argued that
decisions about foreign assistance should be made only once the results of recent events are clear.
Prior to the recent unrest, Egyptian politics were already focused on the possibility of a leadership
transition in the near future, and political and economic tensions rose throughout 2010. In
November and December 2010 parliamentary elections, just one Muslim Brotherhood
independent won a seat, and the ruling National Democratic Party won over 90% of all seats (as
opposed to slightly less than 80% in the last parliament). Some analysts have criticized the
Obama Administration for limiting public criticism of the Egyptian government before and after
the election. Others assert that U.S. democracy assistance funding has been largely ineffective
and that U.S. assistance should seek to improve the lives of average Egyptians. Some critics of
U.S. policy believe that aid should be conditioned on human rights and religious freedom reform.
On February 1, President Barack Obama stated that “throughout this period, we’ve stood for a set
of core principles. First, we oppose violence. ...Second, we stand for universal values, including
the rights of the Egyptian people to freedom of assembly, freedom of speech, and the freedom to
access information. ...Third, we have spoken out on behalf of the need for change.” Reconciling
those principles with ongoing events is now the major challenge for U.S.-Egyptian relations.
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Contents
Revolution in Egypt: Latest Developments, U.S. Foreign Policy, and Issues for the 112th
Congress .................................................................................................................................. 1
The People’s Revolution: A Timeline .................................................................................... 2
January 25 to January 28, 2011: Protests and Police Confrontations................................. 3
January 29 to January 30, 2011: Concessions and Chaos ................................................. 3
Who are the protestors and what do they want? ............................................................... 4
January 31, 2011: A New Cabinet and Clearer Positions .................................................. 5
February 1, 2011: The “March of Millions” and Mubarak’s Second Speech..................... 6
February 2 and 3, 2011: The Battle of Tahrir Square........................................................ 6
The U.S. Response: “Orderly Transition”, Lasting Security Interests, and Potential
Issues for Congress ............................................................................................................ 8
Repercussions for Israel and Middle East Peace .............................................................. 9
Evacuation of American Citizens................................................................................... 10
Other Recent Developments ...................................................................................................... 10
Issues for Congress ................................................................................................................... 11
Presidential Succession: Who Will Follow Hosni Mubarak? .......................................... 11
Managing Egypt’s Leadership Transition............................................................................. 12
The Legal Framework ................................................................................................... 12
The Contenders............................................................................................................. 13
The Opposition ............................................................................................................. 14
The Muslim Brotherhood .................................................................................................... 16
The Egypt-Gaza Border: Can Iranian Weapons Smuggling to Hamas be Stopped? ............... 18
Promoting Democracy in Egypt: ......................................................................................... 19
Human Rights and Religious Freedom ................................................................................ 20
Human Rights ............................................................................................................... 20
Religious Freedom ........................................................................................................ 21
Sudan Referendum and Nile River Basin............................................................................. 23
U.S.-Egyptian Relations ............................................................................................................ 24
U.S. Foreign Assistance to Egypt ........................................................................................ 24
Overview ...................................................................................................................... 24
Debate over U.S. Assistance to Egypt............................................................................ 25
Economic Aid ............................................................................................................... 25
Military Aid .................................................................................................................. 29
Recent Arms Sales Notifications ................................................................................... 30
U.S.-Egyptian Trade............................................................................................................ 30

Figures
Figure 1. Map of Egypt ............................................................................................................. 12

Tables
Table 1. U.S. Direct Funding to International and Egyptian NGOs............................................. 28
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Table 2. Recent U.S. Foreign Assistance to Egypt...................................................................... 31
Table 3. U.S. Foreign Assistance to Egypt, 1946-1997............................................................... 32

Contacts
Author Contact Information ...................................................................................................... 35

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Egypt: Background and U.S. Relations

Revolution in Egypt: Latest Developments, U.S.
Foreign Policy, and Issues for the 112th Congress

Note: A narrative summary of recent events is presented in chronological order below. For the
most recent events, please see: “February 2 and 3, 2011: The Battle of Tahrir Square.”
The U.S.-Egyptian relationship has long helped guarantee regional peace in the Middle East, but
has now entered a period of profound uncertainty. Amid President Hosni Mubarak’s struggle to
remain in power after 29 years, the U.S. government and the 112th Congress face the prospect of
either a more democratic Egyptian government (and what that means for Arab-Israeli peace), a
more repressive Egyptian government secured using means that could make existing partnership
with the United States difficult to maintain, or an Egyptian government in transition, struggling to
balance the primacy of the military with real political reform.
As of February 4, the durability of President Hosni Mubarak’s government remains an open
question. The failure of Egyptian police to stem protests in late January led many observers to
predict that Mubarak would swiftly be forced from office. However, Mubarak and his supporters
have held out and pursued a strategy of granting limited political concessions and making
promises of planned reform, while instilling a climate of fear to intimidate protestors. The
prospect of immediate regime change and the swift emergence of a new democratic order
appeared increasingly uncertain in the wake of widely-televised street battles in Cairo on
February 2 and 3 between opposition protestors and what appeared to be a mix of regime loyalists
and young men intent on violent confrontation. The opposition-regime stalemate on the streets of
Cairo mirrors a political stalemate between those demanding Mubarak’s immediate resignation,
those open to the concessions Mubarak has made, and the will of Mubarak and his inner circle to
hold onto power. The will of the protestors may be tested further, and their ability to demonstrate
en masse may determine whether a movement that coalesced only 10 days ago can be sustained.
If protestors return to the streets of Cairo in large numbers, the military could face very tough
choices. Outside of the immediate protest zone, reports suggest that average Egyptians are
enduring increasing economic hardship as the downward spiral created by large scale civil unrest
takes its toll. President Mubarak and his military allies appear to have calculated that limited
political concessions and the use of brute force will allow them to outlast and break the will of the
demonstrators in central Cairo in order to oversee a transfer of power on their terms.
Members of Congress are closely monitoring the situation in Egypt, and some leading figures
have called for U.S. assistance to Egypt to be frozen or conditioned pending resolution of the
current crisis.1 Other Members have argued that decisions about the future of U.S. assistance
should be taken only after recent unrest is resolved. On February 4, a Senate resolution was
introduced that echoes President Obama’s calls for restraint by the Egyptian military and calls on
“President Mubarak to immediately begin an orderly and peaceful transition to a democratic
political system, including the transfer of power to an inclusive interim caretaker government, in
coordination with leaders from Egypt’s opposition, civil society, and military, to enact the
necessary reforms to hold free, fair, and internationally credible elections this year.”

1 For example, on February 3, Senate Senate Appropriations Subcommittee Chairman for State, Foreign Operations,
and Related Programs Senator Patrick J. Leahy stated that, “The fact of the matter is, there’s not going to be further
foreign aid to Egypt until this gets settled…. Certainly I do not intend to bring it through my committee.”
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Lawmakers have an array of concerns with respect to events in Egypt including the following.
• The potential implications of an immediate resignation by President Hosni
Mubarak.
• The safety and security of American citizens in Egypt and U.S. efforts to
evacuate Americans who want to leave Egypt.
• The Egyptian government’s respect for human rights and the security forces’
treatment of civilian protestors.
• The possible misuse of U.S.-supplied military equipment to the Egyptian army if
soldiers should fire upon peaceful demonstrators.
• The reform of the Egyptian political system into a more democratic space with
free and fair elections for president in the fall of 2011.
• The role of the Muslim Brotherhood in Egyptian politics.
• Any new Egyptian government’s respect for Egypt’s 1979 peace treaty with
Israel, its commitments to securing the Suez Canal as an international waterway,
and plans for military and counterterrorism cooperation with the United States.
The People’s Revolution: A Timeline
In perhaps the most unexpected development in modern Egyptian history, a purely popular
revolution that started only 10 days ago has forced President Hosni Mubarak to announce his
intention not to stand for reelection for president this fall after 29 years in power. Although for
years experts have described simmering discontent among the urban Egyptian masses and a host
of socio-economic factors that may breed instability,2 none had predicted what has transpired over
the last two weeks. Tunisia’s “Jasmine Revolution” has inspired popular protests against
entrenched dictatorships across the Arab world, and it resonated strongly in Egypt, where recent
sectarian violence, an apparently rigged parliamentary election, and the uncertainty surrounding
succession all combined to bring unprecedented numbers of Egyptians into the streets.
Since late January, the balance of events in the streets of Cairo has tipped back and forth in favor
of opposition protestors and the weight of the political status quo. Events in other major cities
have indicated broad dissatisfaction with the status quo and President’ Mubarak’s response to the
protests. At the same time, the Egyptian government’s limits on media and Internet, the
international media’s focus on central Cairo, and the relative opacity of events in the broader
Cairo metro area, the Nile Delta, and the rural governorates make it difficult to accurately
represent the scale or likely trajectory of the unrest. Egypt’s U.S.-funded and equipped armed
forces have heeded U.S. calls for restraint thus far. However, their apparent acquiescence to
violence between opposition protestors and pro-government forces has raised questions about the
military’s intentions. As of February 4, its leaders, by all accounts, remained loyal to President
Mubarak. Observers have examined the durability of that loyalty closely since the protests began.

2 According to studies by Gallup, overall wellbeing (as measured by Gallup) in Egypt and Tunisia decreased
significantly over the past few years, even as GDP increased. Gallup’s data shows that in Egypt, “all income groups
have seen wellbeing decline significantly since 2005, with only the richest 20% of the population trending positively
since 2009.” See, “Egyptians', Tunisians' Wellbeing Plummets Despite GDP Gains,” Gallup, February 2, 2011.
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January 25 to January 28, 2011: Protests and Police Confrontations
Beginning with a day of protest on January 25, young protestors using social media to organize
came out in far greater numbers than initially envisioned, creating a self-sustaining momentum
that culminated in ever larger nationwide protests. On Friday, January 28, hundreds of thousands
of protestors throughout the country clashed with riot police and central security forces controlled
by the widely unpopular Ministry of Interior. An estimated 100,000 people turned up in Cairo
alone. Although people were largely peaceful, crowds burned several symbols of Mubarak’s rule,
including the National Democratic Party headquarters’ building. Police units appeared to have
used disproportionate amount of force against protesters who at times used violence themselves,
although police largely avoided the use of live ammunition.3 Ultimately the police were
overwhelmed, and by early evening crowds began to dissipate as the army took to the streets to
try and instill a sense of calm. Since the army’s deployment, soldiers have largely refrained from
firing on crowds and many protestors initially embraced the army.
January 29 to January 30, 2011: Concessions and Chaos
In the early morning of January 29, President Mubarak made what some described as a desperate
attempt to cling to power in a televised speech to the nation in which he defiantly insisted that he
would remain as president to protect the nation. During the speech, President Mubarak announced
that he was dissolving the government and, later that day, he appointed national intelligence chief
Omar Suleiman as his Vice President,4 the first time anyone has held that office under Mubarak.
He also appointed Civil Aviation Minister Ahmad Shafiq as Prime Minister. Both men are
considered military figures with close ties to the President. The moves failed to calm public
anger, and the weekend of January 29-30 witnessed looting, protests, and near-total chaos, with
the army remaining the only authority in the country. The army was also deployed to protect
important national sites, such as the Central Bank, Ministry of Information, and the Egyptian
Museum in Tahrir Square.
Many Egyptian observers have speculated that the withdrawal of police from urban areas was a
deliberate policy by the government, a scare tactic intended to sow chaos in order to remind
Egyptians that a strongman like Mubarak is needed. Some Egyptians are even accusing the police
themselves of terrorizing the country. Throughout the weekend of January 29-30, there were
numerous reports of looting, and many Egyptians banded together to protect private property and
businesses from armed gangs. Inmates escaped or were released from four main prisons, and
state-owned television broadcasted images of burned infrastructure and disorder in what appeared
to be an attempt to disparage the protest movement by linking it to the ongoing insecurity. Some
human rights groups have alleged that undercover police loyal to the government were among the
looters.

3 One account of the day’s events cites an unnamed source in suggesting the President Mubarak ordered now-deposed
Minister of Interior Habib al Adly “to use live ammunition to put down the protests,” but that Al Adly’s top lieutenant,
General Ahmed Ramzy refused.” See, Charles Levinson, Margaret Coker, and Jay Solomon, “How Cairo, Washington
Were Blindsided by Revolution,” Wall Street Journal, February 2, 2011.
4 According to Article 82 of the Egyptian Constitution, “Should the President be unable to perform his duties due to
any outstanding circumstances, his duties will be performed by the vice president, or (if there is none) the prime
minister. The person performing these duties may not request constitutional amendments, dissolve parliament, or
dismiss the cabinet.”
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By Sunday January 30, it appeared that all sides (President Mubarak, the military, and the
opposition) were trying to reach a solution in order to stabilize the country and extricate Egypt
from falling further into chaos. Since protests began, media sources are citing unconfirmed
reports of at least 300 people killed, the Egyptian stock market has crashed (fallen at least 18% in
2011) and trading has halted, and some are predicting that Egypt’s tourist industry (its main
source of foreign exchange) has been severely damaged. It is clear that, the longer chaos persists
in Egypt, the more lasting damage will be done to the country as a whole, no matter which
government rises in Mubarak’s place. To date, the Suez Canal continues to operate normally.5
Who are the protestors and what do they want?
Images and footage from the early days of the protests suggest that the crowds who flocked to the
streets of Cairo, Alexandria, Suez, Mansoura, Damietta, and other major Egyptian cities
represented a broad and unexpected cross-section of Egyptian society. While most of the
protestors were young men, media accounts showed a significant number of women, children,
and older Egyptians who appeared to represent various social classes joining in their demand for
President Mubarak’s ouster. Clashes with security forces and battles between protestors and pro-
government forces have been dominated by young men, although women have been active
participants in many cases. The disparate elements of the crowd largely outshone the cast of
expected opposition organizations. At present, Dr. Muhammad ElBaradei is leading a committee
of opposition groups/figures that has said that it will negotiate with the government over the
demands of the protestors once Mubarak leaves office.6 Their goals, aside from Mubarak’s
immediate resignation, are as follow.
• To form a more representative interim national unity government.
• To amend the constitution or form an assembly to rewrite it entirely.
• To remove corrupt Egyptian leaders responsible for repressing protestors.
• To dissolve parliament and hold new free and fair parliamentary and presidential
elections.


5 In 2009, oil tankers passing through the Canal carried an estimated 1.8 million barrels per day. The Canal has the
capacity to handle 2.2 million barrels of oil a day. In addition, an estimated 4.5 percent of global oil supplies flow
through the canal and the Sumed pipeline, and 14 percent of the global liquefied natural gas trade is shipped through
the canal as well.
6 Some Egyptians are also calling on other prominent figures, such as Secretary General of the Arab League Amr
Moussa and former Nobel Prize for Chemistry winner Ahmed Zewail, to become more politically involved.
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Members of the Opposition’s Steering Committee
Dr. Mohamed ElBaradei: Former head of the IAEA, leader of Egypt's National Association for Change
Mohammad Baltagi: Head of Muslim Brotherhood bloc of lawmakers from 2005 to 2010
Hamdeen Sabahy: Head of the Karama Party, a secular, left-wing Arab Nationalist party
Abdel Galil Mustafa: The coordinator for the National Association for Change
Mahmoud Al-Khudairi: Former vice president of Egypt's appeals court
George Ishaq: Former head of the Kefaya protest movement
Abdel Ezz Hariri: Formerly of Tegammu, a secular leftist party
Ayman Nour: Head of the liberal secular Ghad party
Magdy Ahmed Hussein: Head of the pro-Islamist Labor Party
Osama Ghazali Harb: founded the secular and liberal National Democratic Front
Youth Movements: These groups have been asked to send 3-5 members to the committee: 6 April Youth Facebook,
Pro ElBaradei Youth, Al Ghad Youth, Muslim Brotherhood Youth, and National Democratic Front Youth
Source: “ElBaradei's Role Cast in Doubt,” Wal Street Journal, February 3, 2011

The Muslim Brotherhood, which has been conspicuously under the radar throughout the last week
of protests, has deliberately deferred to secular opposition leaders and groups, especially Dr.
ElBaradei. According to one Brotherhood leader, “We’re supporting ElBaradei to lead the path to
change…. The Brotherhood realizes the sensitivities, especially in the West, towards the
Islamists, and we’re not keen to be at the forefront.” Despite ElBaradei’s prominence, it is unclear
whether he commands much popular support beyond the educated middle- and upper-class
opposition. He has lived outside of Egypt for decades and was out of the country when protests
began. Much of the grass-roots organizing of demonstrations has been carried out by activists
several generations younger than the traditional leadership of Egypt’s opposition.
January 31, 2011: A New Cabinet and Clearer Positions
On January 31, 2011, the army said that it would not use force against Egyptians, a claim that
Vice President Omar Suleiman has since repeated in public interviews. The army further added
that, “Your armed forces, who are aware of the legitimacy of your demands and are keen to
assume their responsibility in protecting the nation and the citizens, affirms that freedom of
expression through peaceful means is guaranteed to everybody.” Many observers initially
interpreted this statement as an implicit indication of the end of Hosni Mubarak’s rule, as it
appeared at the time that the use of force by the army against civilians was the only method
available to stop demonstrations and restore normalcy.
On the morning of January 31, President Mubarak named a new cabinet, though it is entirely
unclear for how long it will remain standing. Of note, Mohammed Hussein Tantawi remained
Defense Minister and was also elevated to the position of deputy prime minister. Mahmoud
Wagdy, a retired general, was appointed Interior Minister, replacing Habib El Adli who was
widely vilified by the Egyptian public and responsible for police repression against
demonstrators. Among others, Foreign Minister Ahmed Aboul Gheit remained in the cabinet. The
cabinet shifts, coupled with the announcements of January 29, gave the impression that the
leading figures in the Egyptian military establishment had asserted control and moved to preserve
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key elements of the status quo while giving the appearance of substantive change. Vice President
Omar Suleiman, Prime Minister Ahmad Shafiq, Defense Minister Tantawi, and Army Chief of
Staff Sami Anan are all current or former high ranking military officers with close ties to
Mubarak. Some observers have pointed out that these figures have been among the closest of
President Mubarak’s interlocutors with the United States and Israel and are thus probably more
likely to favor a continuation of partnership and the maintenance of the prevailing regional order.7
On Monday evening, newly appointed Vice President Omar Suleiman read a statement on
Egyptian state television that called for new parliamentary elections to be held in districts where
appeals were submitted prior to the recent unrest.8 Suleiman indicated that President Mubarak had
tasked him “with carrying out immediate contacts with all political factions in order to start a
dialogue around all issues at hand with regard to constitutional and legislative reforms, which will
lead to a clear definition of proposed amendments and the specific times for their execution.”
February 1, 2011: The “March of Millions” and Mubarak’s Second Speech
On Tuesday, February 1, an estimated quarter of a million protestors turned out in downtown
Cairo for the 8th consecutive day of public protest against the rule of Hosni Mubarak. Large
demonstrations also reportedly took place in Alexandria, Suez, Mansoura, and Luxor. The army
maintained some semblance of order, and protestors and soldiers refrained from any violent
confrontation. Observers reported that the scale of the demonstration was unprecedented. Other
reports emphasized that diversity of the crowd, which was made up of a large number of women,
children, and Egyptians of all socio-economic backgrounds.
Late Tuesday night February 1, President Mubarak gave a speech in which he said he would not
run for reelection in the fall of 2011 and wants to oversee a “peaceful transfer of power” at the
end of his current term. He added:
Husni Mubarak, who is speaking to you today, holds dear the long years he has spent serving
Egypt and its people. This beloved homeland is my country, as it is the country of each
Egyptian man and woman; I have lived in it and fought for it, and defended its land,
sovereignty, and interests. And on its land I shall die; and history shall judge me and others
in terms of what we owe and what we are owed.9
After the president’s speech, the crowd in Tahrir Square reacted with rage, chanting “Leave!
Leave!” and “We are not leaving!” Supporters were reported to have welcomed the
announcement. Opposition activists have said that Mubarak’s timetable is unacceptable, and his
departure must be immediate. This timetable remains the primary point of contention.
February 2 and 3, 2011: The Battle of Tahrir Square
On Wednesday, February 2, an iconic struggle unfolded on live global television in the center of
Cairo. Supporters of President Mubarak went on the offensive against opposition protestors in

7 “EGYPT: Army decision on Mubarak is key to crisis,” Oxford Analytica, January 31, 2011.
8 U.S. Open Source Center (OSC) Report GMP20110131950061, “Egyptian Vice President Says Re-elections To Be
Held in Districts Under Appeal,” Cairo Egyptian Satellite Channel 1 Television, January 31, 2011.
9 Open Source Center, "Egypt: President Mubarak Addresses Nation on Transfer of Power," Nile News TV, February 1,
2011, Document ID# FEA20110202014021 .
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Tahrir (Liberation) Square, and the army, while not deliberately hurting anti-government
demonstrators, did little to help them. In fact, the army had earlier called on protestors to leave
the streets in an appeal for calm, a move that some observers believe was really intended to
deflate protestors’ momentum.
In what appeared to be an orchestrated show of force, a huge crowd of pro-Mubarak strongmen,
some riding on horses and camels, stormed Tahrir Square on Wednesday morning and attacked
anti-government protestors with metal rods, stones, and sticks. A storm of stones rained down on
both sides of the battle, as participants tore metal sheeting from nearby construction sites and
shops for protection. Some of the men appeared to be activist supporters of the embattled
president, while eyewitness accounts from Egyptians and international journalists suggested that
others were drawn from the ranks of a group known in Egyptian Arabic as Baltagiya,10 or gangs,
many of whom were reportedly paid $10 to break up the demonstrations. Some reports even
suggest that plainclothes police officers were among them. Army units posted at Tahrir Square
initially did nothing to stop the pro-Mubarak crowd. As the day wore on and clashes intensified,
the army positioned itself between the two camps, with each side setting up barricades in the
square and hurling projectiles and Molotov cocktails at each other well into the early morning
hours.
On the political front, Prime Minister Ahmad Shafiq promised in a televised news conference to
bring to justice those responsible for instigating violence while denying the government had any
part in it. Egypt’s attorney general also issued a travel ban on former government ministers and
NDP party officials, such as former Interior Minister Habib al Adly and steel tycoon Ahmed Ezz.
In addition, Egypt’s new government, as laid out in President Mubarak’s February 1 speech,
promised to amend constitutional provisions dealing with presidential elections. The government
also suspended parliament until a judicial panel reviews the results of 2010 parliamentary
elections. Vice President Omar Suleiman stated that the president’s son, Gamal Mubarak, would
not stand for president in future elections. Suleiman also promised to engage in a dialogue with
the Muslim Brotherhood11 saying, “We have contacted the Muslim Brotherhood and invited them,
but they are still hesitant about the dialogue…. I think that their interest is to attend the dialogue.”
Suleiman also asked the nation for time to reform the political system. The government stopped
blocking the Internet.
To date, various reports indicate that at least 10 Egyptians have died in the vigilante-instigated
violence that started on February 2. On February 3, numerous reports streaming out of Egypt
indicated that mobs were targeting foreign journalists. Some reporters were pulled from their
hotel rooms, beaten, and had their equipment confiscated or smashed. Meanwhile, in the streets of
Cairo, government-backed strongmen continued to fight hand-to-hand with demonstrators, in an
attempt to further sow a climate of fear. Vice President Suleiman even blamed the news media for

10 According to one source, “In the 1980s, the police faced the growth of “gangs,” referred to in Egyptian Arabic as
baltagiya. These street organizations had asserted self-rule over Cairo’s many informal settlements and slums.
Foreigners and the Egyptian bourgeoisie assumed the baltagiya to be Islamists but they were mostly utterly
unideological. In the early 1990s the Interior Ministry decided “if you can’t beat them, hire them.” So the Interior
Ministry and the Central Security Services started outsourcing coercion to these baltagiya, paying them well and
training them to use sexualized brutality (from groping to rape) in order to punish and deter female protesters and male
detainees, alike.” See, Paul Amar, “Why Mubarak is Out,” http://www.Jadaliyya.com, February 1, 2011.
11 In response, the Muslim Brotherhood, like the rest of the opposition, has called on Mubarak to step down
immediately. It also has called for the Supreme Constitutional Court chief to step in and oversee new elections as
dictated by Article 76 and 84.
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“sending the enemy spirit.” As Egypt faces more protests on Friday, February 4, the goal of the
pro-Mubarak forces were clear: intimidate the demonstrators and break their will to sustain mass
protests.
The role of the military has become clearer in the last few days. Although it is impossible to gage
the sentiment of all senior officers, clearly the high command has sided with the President.12
Robert Springborg, an Egypt expert and professor at the Naval Postgraduate School argued:
“The threat to the military's control of the Egyptian political system is passing. Millions of
demonstrators in the street have not broken the chain of command over which President
Mubarak presides…. The military high command, which under no circumstances would
submit to rule by civilians rooted in a representative system, can now breathe much more
easily than a few days ago.”13
For now, the key question is whether or not demonstrators will overcome the climate of fear and
intimidation, and turn up en-masse for demonstrations in the days ahead. On February 3,
President Mubarak claimed that if he resigned now, chaos would ensue, and clearly some
Egyptians believe him.14 Many others apparently want him to depart sooner rather than later, but
fear that continued unrest will breed extremism, discord, and cause lasting economic damage.
President Mubarak’s government has calculated that the political concessions he has made
combined with brute force and suppression of all news coming out of Egypt could be enough to
maintain the regime in power, a government that is now entirely dominated by the military.
Should this government stand in the months ahead, most Western observers doubt that it would
embark on an ambitious reform program that would transform Egypt into a genuine democracy.
The U.S. Response: “Orderly Transition”, Lasting Security
Interests, and Potential Issues for Congress

The revolution in Egypt has put the Obama Administration in a major quandary. Since taking
office, President Obama has devoted greater time and attention to the pursuit of Middle East
peace than to efforts to promote reform and democracy in the Arab world. This has been a
deliberate tactic of the Obama Administration, designed to differentiate itself from the Bush
Administration by giving priority to what President Obama believes is a core national interest—
the solution to the Arab-Israeli conflict. By switching its public focus to an issue more amenable
to the Egyptian government, the Administration also hoped to repair the damage to the U.S.-
Egyptian relationship incurred during President’s Bush’s focus on the democracy agenda. By all
accounts, reform efforts remained a component of U.S. diplomacy toward Egypt both in private
and in public, but the Obama Administration had avoided overtly pressuring the Egyptian
government for specific changes. Now with the downfall of President Mubarak possibly
imminent, the Administration has had to engage in what some see as “rhetorical catch up” by
publicly demanding reform.

12 It is unclear what the opinions are of mid to senior level officers. Some analysts have speculated that if the situation
continues to deteriorate, splits in the military may emerge. So far, that does not seem evident.
13 Robert Springborg, "Game Over: The Chance For Democracy In Egypt Is Lost," http://www.ForeignPolicy.com,
February 3, 2011.
14 Mubarak claimed that he told President Obama that “You don't understand the Egyptian culture and what would
happen if I step down now.”
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On Friday January 28, as images of Egyptians clashing with police filled the airwaves, the
Administration said it would reassess U.S. foreign assistance to Egypt. Several days later,
Secretary of State Hillary Clinton said that “there is no discussion as of this time of cutting off
any aid.” President Obama and other U.S. officials urged all sides to refrain from violence,
though the United States did not publicly call on Mubarak to step down. However, on Sunday,
January 30, Secretary of State Clinton expressed in clearer terms the Administration’s desire for a
new political order in Egypt, stating, “We want to see an orderly transition so that no one fills a
void, that there not be a void, that there be a well thought out plan that will bring about a
democratic participatory government.” In response, Dr. Muhammad El Baradei stated that:
“The American government cannot ask the Egyptian people to believe that a dictator who
has been in power for 30 years will be the one to implement democracy….You are losing
credibility by the day. On one hand you're talking about democracy, rule of law and human
rights, and on the other hand you're lending still your support to a dictator that continues to
oppress his people.”
On January 31, the Administration sent former Ambassador to Egypt Frank Wisner for personal
talks with President Mubarak. According to unnamed sources, Wisner told Mubarak that “he was
not going to be president in the future. And this message was plainly rebuffed.”15 In addition,
White House spokesman Robert Gibbs said that any new Egyptian government “has to include a
whole host of important non-secular actors that give Egypt a strong chance to continue to be [a]
stable and reliable partner,” a remark most likely directed at U.S. support for the inclusion of the
Muslim Brotherhood in any future government. On February 1, the current U.S. ambassador to
Egypt, Margaret Scobey, spoke with Dr. ElBaradei “to convey support for orderly transition in
Egypt.”
The Obama Administration has continued to insist that there be an “orderly transition in Egypt
that should be meaningful, peaceful and must begin now.” The Administration has denounced
attacks against foreign journalists and has demanded that those who have perpetrated violence
against innocents be held accountable. As of February 3, while some lawmakers have raised the
possibility of halting foreign aid to Egypt, the Administration has not further addressed any
punitive U.S. measures, such as cutting assistance or trade sanctions, in great detail.
On February 3, the New York Times reported that the Obama Administration is discussing with
Egyptian officials a proposal for President Hosni Mubarak to resign immediately and turn over
power to a transitional government headed by Vice President Omar Suleiman with the support of
the Egyptian military. Reportedly, the United States is seeking an immediate process of
constitutional reform with participation for a broad range of opposition groups, including the
Muslim Brotherhood.16
Repercussions for Israel and Middle East Peace
For more than 30 years, the United States and Israel have based their core assumptions about the
basic stability of the Middle East and the absence of major Israeli-Arab conventional warfare on
the cornerstone of the March 1979 Egyptian-Israeli peace treaty. The Israeli government is
concerned that its quiet, though cold, peace with Egypt may suffer as a result of the changing of

15 "Envoy for Obama Tells Egyptian President Hosni Mubarak to Step Aside," Los Angeles Times, February 1, 2011.
16 "White House and Egypt Discuss Plan for Mubarak’s Exit," New York Times, February 3, 2011.
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the guard in Cairo. According to Eli Shaked, a former Israeli ambassador to Cairo, “The only
people in Egypt who are committed to peace are the people in Mubarak’s inner circle, and if the
next president is not one of them, we are going to be in trouble.” Some Israelis believe that a
more pluralistic government in Egypt would be less inclined to side with Israel in containing
Hamas and blockading the Gaza Strip due to public sympathy for Palestinian rights. In addition, it
is uncertain if the next president of Egypt would try to serve as an intermediary between Israelis
and Palestinians and between the Palestinian Authority and Hamas. Although a new Egyptian
government may be expected to uphold the 1979 peace treaty, it may behave more as Turkey has
over the past year and take a more confrontational approach with its neighbor Israel, a potentially
dangerous development for U.S. foreign policy. Egypt also provides Israel with 40% of its natural
gas, a deal that was widely criticized by the Muslim Brotherhood and other opposition groups.
Natural gas export revenue has been an important contributor to Egypt’s national budget, as oil
revenues have declined in recent years.
Evacuation of American Citizens
The U.S. State Department has urged all American citizens to leave Egypt. The U.S. Embassy in
Cairo has said that for U.S. citizens in Egypt who wish to depart the country, arrangements are
being made to provide transportation to locations in Europe, such as Athens, Greece; Istanbul,
Turkey; and Nicosia, Cyprus. According to the State Department there are about 52,000
Americans registered with the embassy in Cairo. Many other U.S. citizens, however, are not
registered with the Embassy. On February 1, the U.S. State Department ordered all nonessential
American government personnel to leave the country. To date, at least 2,000 American citizens
have been evacuated. So far, more than 3,000 U.S. citizens have communicated a desire to be
evacuated.
For the latest Warden Message from the U.S. Embassy in Cairo, please see:
http://egypt.usembassy.gov/wm2311.html
Other Recent Developments
Alexandria Church Bombing—On January 1, 2011, a suicide bomber detonated
explosives outside the Al Qiddissin (Two Saints) church in Alexandria, Egypt,
killing 21 people and injuring many more. On January 23, 2011, Egyptian
authorities accused a Palestinian militant group in Gaza, known as the Army of
Islam, of perpetrating the suicide bombing.
U.S. Statement on Parliamentary Elections—On November 29, 2010, the U.S.
State Department issued a press release on Egypt’s parliamentary elections after
the first round of voting. According to the statement, the Obama Administration
is “disappointed by reports in the pre-election period of disruption of campaign
activities of opposition candidates and arrests of their supporters, as well as
denial of access to the media for some opposition voices.” The press release also
stated that the Administration looks forward to “continuing to work with the
Egyptian government and with Egypt’s vibrant civil society to help them achieve
their political, social, and economic aspirations.” On December 18, the
Washington Post published an op-ed by Assistant Secretary of State for the
Bureau of Democracy, Human Rights, and Labor Michael H. Posner who
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encouraged the Egyptian government to make the September 2011 presidential
elections transparent, free, and fair.
Parliamentary Elections—In the November and December 2010 election for
the People’s Assembly (the lower house), the ruling NDP party won 420 out of
504 total seats available. In addition, another 68 elected independents and
presidentially appointed representatives are expected to vote with the NDP bloc,
giving the ruling party 96% of the seats in the lower house. The Muslim
Brotherhood, which had 88 seats in the last Assembly, did not win a single seat in
the first round of voting and chose to boycott the second round (one Brotherhood
candidate won in a run-off ). Overall, the vote was marred by allegations of
government fraud and abuse, though estimates of the turnout are low (25% or
lower), and there was little public protest against the NDP’s overwhelming
victory. Most importantly, because the Egyptian constitution requires that an
independent candidate for president obtain the signatures of 250 elected officials,
including 65 from the lower house of parliament, it seems highly unlikely that
any non-NDP candidate could meet this threshold under the existing power
structure in the People’s Assembly.
Issues for Congress
Presidential Succession: Who Will Follow Hosni Mubarak?
The broad political discontent currently on display in nationwide protests has been fueled by
longstanding concerns over presidential succession in general and more recent concerns that
President Mubarak was enabling the election of his son Gamal in particular. Since power in the
Egyptian political system is highly concentrated in the office of the president and his cabinet, the
issue of who would succeed President Hosni Mubarak has long been critical not just for the
Egyptian people, but for Egypt’s relations with the international community and especially with
the United States. Since Mubarak has never personally endorsed a successor and, until last week,
had kept the vice president’s office vacant, the issue of presidential succession has been opaque to
Egyptians and foreign observers alike for a decade, perhaps deliberately so. Nevertheless,
Mubarak’s health problems in the spring of 2010 led many to speculate that a possible changing
of the guard was imminent. While that did not materialize and his health has since improved,
presidential elections set for September 2011 and the unrest in the wake of Tunisia’s popular
revolution have thrust the issue back into the limelight.
For some U.S. policymakers, there is a desire to see an orderly, legal, and transparent transfer of
power in which the incoming president maintains support for key U.S. goals: Egypt’s peace with
Israel, U.S. access to the Suez Canal, and general bilateral military cooperation. Others see a
possible transition as an opportunity to change the trajectory of Egyptian politics away from a
military dictatorship/oligarchy and toward a genuine democracy even if it empowers nationalist
forces or the Muslim Brotherhood. Many analysts long found the prospect for the emergence and
autonomy of a freely elected government to be highly unlikely given the assumed coercive power
of the Egyptian security services. Some observers now find themselves focused on the
unexpected questions of whether or not a post-Mubarak elected government would pursue a
confrontational foreign policy. Amid this uncertainty, many democracy advocates continue to
encourage the United States vocally support a genuine free and fair presidential election in which
all opposition groups are fairly represented.
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Figure 1. Map of Egypt


Managing Egypt’s Leadership Transition
The Legal Framework
Based on a series of constitutional amendments enacted in the last few years, ruling elites have
worked to establish the veneer of a legal framework to facilitate a smooth transition of power,
despite claims by the opposition that the amendments are illegitimate. For potential presidential
candidates not from the ruling National Democratic Party (NDP), Egyptian law sets a high bar for
establishing eligibility to run. For example, amended Article 76 states that for any candidate to
run for president, he or she has to gain the approval of 250 members of elected assemblies and
municipalities, including, among other signatures, 25 members of the Shura Council (upper
house), which is almost entirely composed of pro-ruling party members. In addition, a candidate
must be a member of a political party’s higher board for at least one year.17 Parties that have had

17 However, an NDP member not in the party’s leadership council could run as an independent if the party’s
(continued...)
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at least one member in either house of parliament since May 1, 2007 are eligible to nominate a
candidate for the presidency until 2017. Finally, all parties that nominate a candidate must have
been legally operating for at least five consecutive years before the starting date of candidature.
If President Mubarak becomes incapacitated or dies in office, Article 84 of the Constitution
states:
In case [of] vacancy of the Presidential office or the permanent disability of the President of
the Republic, the Speaker of the People’s Assembly shall temporarily assume the
Presidency; and, if at that time, the People’s Assembly is already dissolved, the President of
the Supreme Constitutional Court shall take over the Presidency, provided, however, that
neither shall nominate himself for the Presidency, subject to abidance by the ban stipulated
in paragraph 2 of Article 82. The People’s Assembly shall then proclaim the vacancy of the
office of President. The President of the Republic shall be chosen within a maximum period
of 60 days from the day the Presidential office becomes vacant.
The 2010 elections for the People’s Assembly (lower house) gave the NDP an overwhelming
majority (96%), making it nearly impossible for any non-NDP endorsed candidates to obtain the
constitutionally-mandated 65 signatures from members of the People’s Assembly to stand on the
ballot for president. Furthermore, only a handful of opposition parties, including the Wafd and
Tagammu, would be eligible to field a candidate in September 2011.
The Contenders
Since Egypt’s legal framework favors pro-government candidates and many opposition activists
charge that elections are fraudulent, only a handful of NDP or military figures are considered
presidential frontrunners, including the following.
Omar Suleiman—Unless a new figure comes to light in the next year, analysts have speculated
that the only other viable candidate for the presidency is Egyptian intelligence chief Omar
Suleiman. However, at age 75, it is unlikely that Suleiman, should he become president, would
rule for a long period of time. Furthermore, as head of Egypt’s General Intelligence Service
(GIS), Suleiman would need to retire from military service since active-duty military officers are
not allowed membership in political parties.18 In addition, if Suleiman desired party sponsorship,
he would need to be a member of a party’s supreme council for at least one year before the
election. Suleiman is currently engaged in a number of sensitive diplomatic operations and is one
of President Mubarak’s closest confidants, making his departure from military service unlikely.
Suleiman’s relationship with Gamal Mubarak is the subject of intense speculation by observers of
Egyptian politics. Some suggest that in the event Gamal Mubarak becomes president, Omar
Suleiman would serve as his unofficial tutor and assist in military and intelligence matters.
Supporters of this theory note that back in 2007, Suleiman served as the official witness at
Gamal’s wedding, displaying his loyalty to the Mubarak family.19 According to one close

(...continued)
representatives in government endorsed such a figure.
18 Others suggest that Omar Suleiman has not been an “active duty” officer since 1984 and that if he was determined to
serve as a candidate, he would overcome the legal technicalities barring his candidacy.
19 "And as a wedding gift from Dad, Egypt's presidency?," Los Angeles Times, May 5, 2007.
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associate of Gamal Mubarak, Mohammad Kamal (Hosni Mubarak’s former campaign manager),
“Is Omar Suleiman powerful? Yes he is. Does he have a strong say in politics? Yes…. But any
talk about Omar Suleiman drafting domestic policy or competing for power is pure exaggeration
and fiction.”20 Others posit that should Hosni Mubarak pass away while in office, Omar
Suleiman’s loyalties to Gamal would dissipate, and many in the military and intelligence
community would support him.
Ahmed Shafiq—69-year-old Ahmed Shafiq, the current Minister of Aviation and former Air
Force Commander, is considered a long shot candidate. Observers are intrigued over the
speculation surrounding his potential candidacy due to his background as a military officer who
successfully transitioned to the private sector, a profile that epitomizes the modern Egyptian
leader. Shafiq is largely credited with revitalizing Egypt Air and expanding Cairo international
airport. He also served in the Air Force under Hosni Mubarak’s command and reportedly is close
to the Mubarak family. According to one unnamed source, “Shafiq has a good reputation. He's
tough, honest, and low-key…. His name is definitely out there.”21
Field Marshal and Defense Minister Mohammed Hussein Tantawi—Though too old to be
considered a long term replacement for President Mubarak, 75-year-old General Tantawi, a
Mubarak loyalist, might be considered as a possible short-term presidential placeholder. Experts
believe that Tantawi, one of the most powerful army officers, would be more likely to serve as
one of the few behind-the-scenes regime decision-makers who guide Egypt through the transition
from Mubarak to his successor. It is unclear whether or not Tantawi supports Gamal Mubarak or
the idea of hereditary succession. Tantawi’s Chief of Staff, General Sami Annan, also is
considered a key decision-maker in the Army and possible behind-the-scenes player in the event
the military becomes involved in the succession issue. It is unclear what implications, if any, the
army’s reported deployment to quell January 2011 protests will have on its potential role as an
arbiter of future leadership questions.
The Opposition
For many Egyptians, young or old, educated or uneducated, urban or rural, and secular or
religious, there is widespread opposition to the concept of hereditary dictatorship.22 Until the
protests of January 2011, there was little way of quantifying the depth of this opposition or
assessing the willingness of activists to protest against it, should such a scenario come to pass.
Now, it is clear. Many Egyptians want President Mubarak to leave office and his son not to inherit
power. Popular protests against Gamal Mubarak and a familial succession have transpired for
nearly a decade, and opposition movements have been formed solely to thwart such a transition
from occurring. To his opponents, Gamal Mubarak is the ultimate symbol of Egyptian corruption,
corporate greed, and growing wealth imbalance between workers and private sector elites.
Until the riots of January 2011, many observers believed that the Egyptian opposition was
fractured and feckless and easily manipulated by pro-government forces backed by the veil of
physical force.23 As has been the case for many years, the Muslim Brotherhood, a political,

20 "Powerful Egyptian Spy Chief No Longer Behind the Scenes," Los Angeles Times, February 8, 2005.
21 "New Contender Emerges in Egypt," Wall Street Journal, December 10, 2010.
22 When speaking of a father to son succession, Egyptians use the term tawrith al sulta, translated as “inheritance of
power.”
23 Though periodically Egyptian secular and Islamist (Muslim Brotherhood) opposition groups/political parties unite to
(continued...)
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religious, charitable, and educational group that has been banned as a political party since 1954,
remains the only well-organized opposition movement in Egypt today. Other political parties
(Wafd and Ayman Nour’s Al Ghad party—now banned), labor demonstrations, secular protest
movements (Kefaya, April 6th), and spontaneous demonstrations organized through online social
networks all exist in the sphere of opposition politics, but, until January 2011, no single issue or
event was able to unite them against the primary institutions of Egyptian rule, President Mubarak,
the NDP party, NDP-affiliated businessmen, and the security forces.
Despite more international attention to Egyptian politics in the last decade, widespread
assumptions held that the apparent political apathy permeating Egyptian society would prevent
the kind of mass mobilization capable of bringing about change. These assumptions have been
brought into question by recent events. As recently as June 2010, Mohamed Sherdy, a high-level
member of the opposition Wafd party, argued that “The people now brand [opposition parties] as
part of the same political charade…. We're all facing the same problems, and we all committed
the same mistakes—which is partially losing touch and partially losing hope.”24 Similarly, Steven
Cook, an Egypt specialist at the Council on Foreign Relations, suggested in July 2010 that
“There is a curious tendency for some reform-minded young professionals to throw their lot
in with the regime, despite a professed desire for a fundamental transformation of Egyptian
politics and society. Protestations abound about the desire to effect change from working
within the state apparatus, but reality is that the Egyptian regime manifests a powerful
system of reward and punishment that encourages a measure of political conformity for those
not willing to take their risks with Egypt's vaunted internal security services.”25
Cook’s dispatch from Cairo in January 2011 paint a much different picture in response to the
relatively unorganized but undeniably widespread activism that emerged across the country.
Experts have often suggested that poverty, not politics, is foremost on the minds of most
Egyptians, but it appears that the confluence of political and economic frustrations on display in
recent protests have reached a decisive point. According to the World Bank, 16.7% of Egyptians
live below the poverty line (though this figure is trending downward). Millions more struggle as
low wage urban laborers, and 30% of all workers are small subsistence farmers. High rates of
inflation (between 9% and 12% annually) hurt all Egyptians, especially those aspiring to a middle
class lifestyle. Moreover, lack of upward mobility is a major source of frustration for young
workers. More than half of the Egyptian population is under the age of 24, and approximately
600,000 Egyptians join the labor market each year, putting enormous strains on the public and
private sectors to keep pace.26 Unemployment and underemployment remain high, as about 50%
of males and 90% of females remain jobless two years after graduating college.27

(...continued)
protest government repression. According to the Economist Intelligence Unit, “In the 1984 parliamentary election the
Brotherhood won 15% of the vote in an alliance with the Wafd Party and in 1987 it campaigned with the Labour and
Liberal parties under the slogan ‘Islam is the Solution’. Although the names of such political parties suggest a secular
liberal ideology, Islam still offers a common ground to unite the small opposition parties. However, such alliances have
tended to be temporary and ineffectual in the long term.” See, “A Potential Coalition of Opposition Leaders Emerges,”
EIU Egypt Country Report, January 1, 2011.
24 "Support for Egypt's Opposition Parties Wanes," Wall Street Journal, June 14, 2010.
25 "Can Egypt Change?: Political Institutions Need Reform," foreignpolicy.com, July 22, 2010.
26 “Egypt Economy: Demographic Profile,” EIU ViewsWire, July 7, 2010.
27 "Mubarak and Son Limited," Africa Confidential, January 7, 2011.
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Yet, observers suggest that while Egypt faces developmental challenges, such challenges have not
yet been accompanied by frequent political unrest. According to an Economist special report on
Egypt:
“By and large, though, poor Egyptians grumble surprisingly little. There are some positive
reasons for their forbearance. Strong bonds among extended families, neighborly solidarity
and the Muslim tradition of charity support many of the needy. Egypt has very low crime
rates, and it is the poorest who feel most secure in their homes. With their street life and
intimacy under year-round sunshine, Egypt’s slums are often less grim than those in other
countries. Sociologists have long noted the knack of Egypt’s poor to appropriate things they
lack, such as space and freedom, by nimbly skirting the rules. Egypt may be chaotic, but it is
often joyfully so. However, there are also less attractive reasons for public passivity. One of
them is fear. Corporal punishment and physical violence persist in Egyptian homes and
schools and, most notoriously, in police custody…. All of this provides another reason why
so many Egyptians have, for so long, shied away from voicing complaints. In their
experience no one is likely to listen unless they are a relative, a friend, or amenable to a
bribe. In theory citizens are represented by their MPs, but all too many people enter
parliament for perks such as immunity from prosecution. Litigation is possible but
unattractive because the courts are slow, capricious and open to corruption.”28
Until January 2011, on the issue of presidential succession, there were no indications that this
long-standing pattern of behavior shows any sign of changing, despite the injection of new
personalities into the mix, such as Dr. Mohamed ElBaradei, the former Director General of the
International Atomic Energy Agency (IAEA) and 2005 Nobel Prize winner. ElBaradei has
publicly expressed his intention to reform the political system, amend the constitution, and
possibly run for president as an independent candidate. President Mubarak has said that ElBaradei
can run for president as an independent so long as he respects the constitution. Because
independent presidential candidates must meet extremely rigid criteria in order to run, ElBaradei
has called for free and fair elections that are monitored by both Egyptian judges and international
monitors. He also has insisted that the constitution be amended in order to remove all “legal
impediments that limit the majority of the people from becoming candidates.”
Since returning to Egypt in February 2010 after a 27-year absence, ElBaradei has formed a new
political organization called the National Association for Change. He has allied his organization
with the Muslim Brotherhood, though the latter rejected his call for a boycott of the 2010
parliamentary elections. In January 2011, ElBaradei called for a boycott of the 2011 presidential
election, stating that “According to these rules, only five people—out of some 85 million
Egyptians—can qualify to stand in elections…. It would be better if the president appointed his
own successor…than to subject the Egyptian people to the “farce” of elections.”29
The Muslim Brotherhood
The Muslim Brotherhood (MB) was founded in Egypt in 1928 to turn Egypt away from
secularism and toward an Islamic government based on sharia (religious) law and Muslim
principles. The MB operates as a religious charitable and educational institution, having been
banned as a political party in 1954; however, many Brotherhood members run for parliament as

28 “No Paradise,” The Economist, July 17, 2010.
29 Open Source Center, "Egypt: ElBaradei Calls For Boycott of Presidential Election," Al-Masry Al-Youm Online ,
January 9, 2011, Document ID# GMP20110110839002.
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independents. In the 2000 parliamentary elections, 17 independent candidates regarded as
Brotherhood sympathizers were elected. In 2005, Brotherhood-affiliated candidates won 88 seats
in parliament. In 2010, just one MB candidate was elected, and the group withdrew from
elections after the first round of voting accusing the government of fraud. Over the years, the
Egyptian government has alternated between tolerating and suppressing the Muslim Brotherhood,
sometimes arresting and jailing its members, and other times allowing them to operate almost
without hindrance.
Many foreign observers agree that the organization renounced its former policy of using violence
as a political tactic decades ago, and point out that the former Brotherhood members most
committed to violence largely gravitated toward organizations formed the basis for Al Qaeda.
Nevertheless, many Egyptian officials continue to perceive the Brotherhood as a threat and are
unwilling to legalize the movement. In the United States, the issue of whether or not to recognize
the Muslim Brotherhood as a legitimate political actor continues to perplex policymakers,
particularly given the complex scenarios posed by regional Islamist groups still devoted to
militancy and terrorist tactics such as the Palestinian Hamas and Lebanon’s Hezbollah. On the
one hand, there has been a general reluctance among U.S. decision-makers to push for Islamist
inclusion in politics, out of concern that, once in power, groups such as the Muslim Brotherhood
will pursue policies counter to U.S. interests in the region or will transform states into theocracies
like Iran. On the other hand, some experts believe that if Islamists were brought into a functional
democratic system, then they would temper their rhetoric in order to appeal to a wider audience.
According to current U.S. Ambassador to Egypt Margaret Scobey:
The Muslim Brothers is a banned group in Egypt, and there are no direct relations with them.
But we deal with political personalities through parliament. The day of President Obama’s
address, invitations were issued to independent personalities who could be from the Muslim
Brothers and were elected through Parliament and recognized. But there is no direct dialogue
between us and them. The channels are open, and it is possible to contact official
personalities through parliament.
Prior to the protests of January 2011, most analysts had believed that, from an organizational
standpoint, the Brotherhood was the only movement capable of mobilizing significant opposition
to the government, though opinions vary on how much mass support the Brotherhood commands.
As is typical for Islamist groups across the region, the Muslim Brotherhood is strongest among
the professional middle class, controlling many of the professional syndicates (associations),
including those representing engineers, doctors, lawyers and academics.
For years critics have charged that the Muslim Brotherhood, like other Islamist groups, has been
unable to articulate concrete policies and has relied too heavily on conveying its agenda through
vague slogans, such as the party mantra of “Islam is the solution.” When the Brotherhood
circulated a draft party platform in late 2007, it generated a great deal of attention and
condemnation by its opponents. The draft, which was contested by a more moderate faction of the
Brotherhood, called for the establishment of a board of religious scholars with whom the
president and the legislature would have to consult before passing laws. According to one critic,
“Reminiscent of Iran’s Guardian Council, this undemocratically selected body could have
the power vested by the state to veto any and all legislation passed by the Egyptian
parliament and approved by the president that is not compatible with Islamic sharia law....
The Muslim Brotherhood should have looked to Turkey as a model for how to integrate
Islam into a secular system.”
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The draft platform also states that neither women nor Christians may stand for president.
As part of their systematic coercion strategy, Egypt’s security forces continually arrest and
imprison Brotherhood members to keep the group on the defensive. According to Egyptian law,
citizens who have been incarcerated cannot stand for elected office, and authorities have used this
provision to target some of the Brotherhood’s most promising young leaders, even those who may
be more accommodating toward improving the group’s relations with the West. In June 2009,
police arrested Dr. Abdel Moneim Aboul Fotouh, a member of the group’s elite Guidance
Bureau/Council and secretary-general of the Union of Arab Doctors, along with six other leaders
on charges of belonging to an outlawed group, conspiring with international terrorist
organizations such as Hezbollah, and money laundering. Prosecutors charge that MB leaders were
responsible for forming terrorist cells inside Egypt and had funneled fighters and funds to Hamas
in the Gaza Strip. Egyptian authorities have criticized the MB’s support for Hamas and Hezbollah
in Lebanon and have accused the Brotherhood of disloyalty to the state and of having an
international agenda. Arrests also have targeted a number of MB-owned businesses in order to
financially squeeze the Brotherhood’s extensive charitable organizations.
The Egypt-Gaza Border: Can Iranian Weapons Smuggling to
Hamas be Stopped?

Since 2007, Hamas, the Palestinian-Islamist terrorist group/political party, has controlled the
Gaza Strip, and Israel and Egypt, in order to keep Hamas contained and isolated, have generally
sealed Gaza’s land and sea borders. However, Palestinians in Gaza and Sinai Bedouin Arabs in
Egypt have used and expanded a decades-old network of underground tunnels beneath the Gaza-
Egypt border to smuggle Iranian-supplied weapons to Hamas and other Palestinian militant
groups. According to various sources, these groups receive weapons that emanate from Iran,
Yemen, and elsewhere. Smugglers ship weapons up the Red Sea through Sudan and then overland
through the Sinai desert until they reach tunnels in the divided town of Rafah, Egypt at the border.
In December 2010, Israel’s Shin Bet internal security service issued a report asserting that Iran
continued to serve as Hamas's dominant supplier of weaponry throughout the past year, using
smuggling routes in Sudan and Sinai to send various mortars, rockets, and anti-tank missiles to
Hamas in Gaza.30 Prior to the release of the report, Israel claimed that Hamas gunmen fired a
Kornet anti-tank missile at an Israeli Merkava tank along the Gaza border.
Although Egypt may not be as diligent as Israel in sealing its borders with Gaza, it still considers
Hamas a neighboring threat. Egypt would like to keep Hamas contained and not be held
responsible by Israel for ruling Gaza as it did between 1948 and 1967. The secular Mubarak
regime is opposed to Islamists wielding real political power, and it fears that Hamas could serve
as a model for Egyptian Muslim Brotherhood activists who the regime believes may seek to
establish an Iranian-style theocracy in Egypt. In addition, Egypt seeks to maintain a mostly sealed
border with Gaza in order to keep Palestinian civilians from entering the Sinai peninsula in large
numbers, as they did during a January 2008 border breach. Egypt also is concerned about the
security of the Sinai peninsula and Hamas’s (and Hezbollah’s) relationship with Sinai Bedouins.
Cairo fears the prospect of Hamas sleeper cells in Sinai being activated to carry out anti-Israeli
attacks. In August 2010, militants launched rockets at the Israeli Red Sea coastal city of Eilat, but
hit the neighboring Jordanian city of Aqaba, killing a taxi driver and wounding four others.

30 "Iran Smuggled Hundreds of Rockets, Dozens of missiles to Gaza in 2010," Jerusalem Post, December 31, 2010.
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Egypt has followed Israel’s lead in its blockade of Gaza in order to pressure Hamas into
reconciling with the more moderate Fatah party and merge with the Palestinian Authority in the
West Bank. Some Israelis accuse Egyptian authorities of turning a blind eye to the smuggling
trade underneath the divided town of Rafah on the Egyptian-Gaza border, while other U.S. and
some Israeli officials have praised Egypt for taking a tougher stance on arms smuggling through
the tunnels. In 2010, Egypt constructed a steel barrier along the border to deter tunnel-digging,
though anecdotal reports suggest that smugglers are penetrating the wall with standard
blowtorches.
The United States has provided Egypt with Foreign Military Financing (FMF) aid to bolster its
border security and combat tunnel smuggling, including the following.
• $30.35 million for a Mobile Ground Surveillance Radar and Support System.
• $16.37 million for a Coastal Border Surveillance System.
• $8.09 million for an Electro Optical Surveillance System.
• $28.60 million for a Border Tunnel Activity and Detection System.
• $7.23 million for a Mobile field workshop equipment and support.
• $25.63 million for other ground surveillance systems.31
Promoting Democracy in Egypt:
Among the many reforms advocated by proponents of a more democratic Egypt, advocates would
like to see: (1) the Emergency Law32 abolished in line with Mubarak’s 2005 campaign promise;
(2) constitutional reforms enacted to ease barriers for independent and opposition candidates to
run for office; (3) judicial independence33 restored by eliminating the state-controlled Supreme
Judicial Council that appoints judges; (4) the Legislative branch strengthened; (5) restrictions on
non-governmental organizations curtailed,34 and (5) presidential term limits adopted.
Under the 1971 constitution, authority is vested in an elected president who must stand for
reelection every six years.35 The president appoints the cabinet, which generally drafts and

31 Information provided to CRS by the Defense Security Cooperation Agency (DSCA), January 11, 2011.
32 Under the emergency law, the government can hold an individual for up to 30 days without charge. In May 2010,
parliament approved a two-year extension of the emergency laws, which have been in place since Sadat’s assassination
in 1981. During his 2005 election campaign, President Mubarak pledged to introduce a number of reforms, including
the elimination of the emergency laws which have been used to quell political dissent by holding people without charge
for long periods and referring civilians to military courts, where they have fewer rights.
33 In addition, proponents of greater judicial independence in Egypt also would like to see the restoration of judicial
supervision of elections and the elimination of state security courts. Earlier versions of the Constitution required that
“balloting take place under the supervision of a judicial body.” Amended article 88 of the Constitution transfers the
oversight of elections to a higher committee (Supreme Electoral Commission), which, although made up of some
judges, removes most from direct oversight of balloting stations.
34 In Egypt, NGOs are required to apply for legal status and, according to Association Law 84-2003, NGOs must be
registered with the Ministry of Social Affairs. There are an estimated 16,000 registered civic organizations in Egypt. In
some cases, it may take years before the ministry rules on an application, and many groups are routinely rejected.
Often, no response is given to the application, leaving an organization in legal limbo. If an NGOs application is
rejected, it has few legal rights and can be shut down.
35 In 1980, the Constitution was amended to allow the president to run for an unlimited number of terms, rather than
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submits legislation to the legislature: the People’s Assembly (lower house) and the Shura Council
(upper house). The People’s Assembly debates legislation proposed by government ministries and
calls for amendments to government-sponsored bills but rarely initiates its own bills. The Shura
Council has modest legislative powers and must ratify treaties and constitutional amendments.
Overall, analysts consider Egypt’s legislative branch to be weak; the ruling party constitutes an
overwhelming majority. Based on low voter turnout in recent elections, there appears to be a clear
lack of public confidence in the parliament.
U.S. attitudes toward Egypt’s political system range from passionate opposition to a perceived
brutal regime to passive acceptance of a stable government that is largely supportive of U.S.
foreign policy goals in the Middle East, specifically the pursuit of Arab-Israeli peace. This lack of
consensus hinders any uniform U.S. approach toward how to best promote democracy in Egypt.
To the extent that there is agreement among experts, most espouse the general principle that a
politically and economically vibrant Egypt at peace with its neighbors and legitimate to its own
people is not only good for most Egyptian citizens but for U.S. national interests. However, when
it comes to formulating policy to enforce these principles, democracy advocates clash with
“realists” over the degree of U.S. pressure to place on the Mubarak government, while Egypt
itself resists U.S. attempts to influence its domestic politics, charging that U.S. interference
empowers the Muslim Brotherhood.
Some experts believe that Egypt is already changing in profound ways due to the global spread of
information technology, rising economic inequality, and demography, and that the United States
needs to vocalize its support for reform regardless of its capacity to bring it about. According to
Michele Dunne, senior associate at the Carnegie Endowment for International Peace, “I think that
the United States should advocate democratization and greater respect for human rights for
Egyptians. This does not mean that the U.S. can make these things happen in Egypt, but we
should be clear that we are in favor and willing to use the influence we have to promote them.”36
Human Rights and Religious Freedom
Human Rights
As a major recipient of U.S. assistance, Egypt has been of great interest to lawmakers, some of
whom believe that portions of U.S. aid should be conditioned on improvements in Egypt’s human
rights record. According to the U.S. State Department’s 2009 Country Reports on Human Rights
Practices
, “the government’s respect for human rights remained poor, and serious abuses
continued in many areas.” The 2009 report, as in past years, documents several instances of
torture allegedly carried out by Egyptian security forces. The prison system, particularly detention
facilities used for incarcerating suspected Islamist radicals, has come under international scrutiny
for exacerbating militancy in the region due to its tendency to harden some criminals who have
been tortured over prolonged periods of time. Several of Al Qaeda’s leaders, including second-in-
command Ayman al Zawahiri, are former prisoners in Egyptian jails.

(...continued)
one as was stipulated in the 1971 Constitution. An English language version of the Egyptian Constitution is available at
http://www.parliament.gov.eg/EPA/en/sections.jsp?typeID=1&levelid=54&parentlevel=6&levelno=2.
36 "Middle East: As Egypt Cracks Down On Critics, U.S. Looks Away," Inter Press Service, November 8, 2010.
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On the positive side, the 2009 report did mention that the government had taken some steps
forward in specific areas, stating:
The government promulgated procedures for members of unrecognized religions, including
the Baha'i faith, to obtain national identification documents and reportedly issued 17 such
documents and 70 birth certificates to Baha'i during the year. The government also permitted
the newly formed Real Estate Tax Collectors Union, the country’s only independent labor
union, to operate. For the first time in the country’s history, a UN special rapporteur and an
independent expert visited at the government’s invitation.37
In June 2010, two policemen in Alexandria murdered 28-year-old Khaled Said, who shortly
before his death had posted an online video showing police officers dividing up money seized in a
drugs bust. Said’s head had been smashed against a marble staircase, and his killing sparked days
of street protest and widespread international condemnation. Under pressure, the government
prosecuted the two accused police officers. The Obama Administration issued a press release on
Said’s killing, stating that “the United States is concerned about the death of Khaled Mohammed
Said at the hands of Egyptian security forces in Alexandria on June 6th. We have been in touch
with the Egyptian Government on this matter. We welcome the Government’s announcement of a
full investigation and we urge that it be done transparently and in a manner consistent with the
serious allegations that have been made.” Perhaps in a politicized attempt to demonstrate
leadership, Gamal Mubarak also spoke out against Said’s murder, stating “Justice must take its
course…. The party insists on the accountability of any wrongdoer within the framework of
justice, transparency and the rule of law.”38
Religious Freedom
In its 2010 report on religious freedom in Egypt, the U.S. State Department concludes that “the
status of respect for religious freedom by the government remained poor, unchanged from the
previous year.” Although the Egyptian constitution provides for equal rights without regard to
religion, in practice, discrimination against Copts (between 9 and 12% of the population),
Baha’is, and other small religious communities persists at the both the official and societal levels.
Certain residual issues can trigger outbursts of sectarian violence. These include:
Land disputes. Conflicts over land ownership have triggered a number of violent
incidents involving members of different religious sects, particularly in rural
Upper (southern) Egypt.
Religious conversions. The conversion of Copts to Islam, as well as the marriage
of Coptic women to Muslim men, has been a constant irritant in Muslim-Coptic
relations. Converts to Christianity in Egypt also may face bureaucratic obstacles
in registering their new religious status with the government. There also is the
issue of forced conversions. The 2010 State Department report states that “As in
previous years, there were occasional claims of Muslim men forcing Coptic
women and girls to convert to Islam. Reports of such cases were disputed and
often included inflammatory allegations and categorical denials of kidnapping
and rape. In November 2009 an international Christian advocacy group published
a report regarding alleged cases of forced conversion; however, well-respected

37 See, http://www.state.gov/g/drl/rls/hrrpt/2009/nea/136067.htm.
38 "Egypt President's Son Wants Justice in Activist Death," Reuters, July 6, 2010.
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local human rights groups were unable to verify such cases and found it
extremely difficult to determine whether compulsion was used, as most cases
involved a female Copt who converted to Islam when she married a male
Muslim. Reports of such cases almost never appear in the local media.”39
Church repair and construction. Copts have consistently complained of
excessive bureaucracy when repairing or building churches. For example, the 10
articles of “Humayun,” or the Humayun Code, a portion of Ottoman legislation
from 1856, still controls the building or repair of churches in Egypt and is a
source of great aggravation to Coptic Christians. Under this law, a license is
required to erect a church. In addition, there are 10 restricting conditions for the
construction of churches, including a minimum distance between churches and
between a church and the nearest mosque, as well as the absence of objection on
the part of Muslim neighbors. In December 2004, President Mubarak issued a
new decree that devolved church repair and reconstruction decisions to the
provincial level and stipulated that churches would be permitted to proceed with
rebuilding and repair without legal hindrance. However, permits for construction
of new churches require a presidential decree.
Typically, after an outbreak of Coptic-Muslim violence, both the government and the Coptic
Orthodox Church rapidly respond to ease communal tensions. However, more often than not, the
Egyptian government only acts to redress the immediate causes of violence rather than the
underlying symptoms. Despite being nearly 10% of Egypt’s population of 81 million, Copts are
not widely represented at the highest levels of Egyptian institutions. There is only one provincial
governor who is Christian (of 28). Few, if any, Christians serve as police commissioners, city
mayors, public university presidents, or deans. Christians hold less than 2% of the seats in the
People’s Assembly and Shura Council. There are few Christians in the upper ranks of the security
services and armed forces. Public funds compensate Muslim imams but not Christian clergy. Only
three of the cabinet’s 32 ministers are Christians.
2011 Church Bombing in Alexandria
On January 1, 2011, a suicide bomber detonated explosives outside the Al Qiddissin (Two Saints)
church in Alexandria, Egypt, killing 21 people and injuring many more. Coptic worshippers were
attending midnight mass at the church on New Year’s Eve when a bomb was detonated near the
entranceway. Authorities are investigating and no group has claimed responsibility. The attack
sparked widespread Coptic protests against the government for failing to protect the community,
and officials were quick to blame foreign elements. President Mubarak stated that the attack was
a “terrorist operation that carries, within itself, the hallmark of foreign hands which want to turn
Egypt into another scene of terrorism like elsewhere in the region and the wider world.”40
There is some suspicion, though unproven, that Al Qaeda in Iraq (the Islamic State of Iraq) is
behind the bombing. This group has previously threatened Egyptian Copts and churches over
alleged Coptic mistreatment of female converts to Islam. In July 2010, a Coptic priest's wife,
Camilia Shehata, allegedly converted to Islam, and the Egyptian government allowed Coptic

39 U.S. State Department, Bureau of Democracy, Human Rights, and Labor, 2010 Report on International Religious
Freedom
, Near East and North Africa, Egypt, November 17, 2010.
40 "A State of Sectarian Denial," Middle East Report Online, January 11, 2011.
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authorities to take Shehata, who remains in an undisclosed location under Church supervision.
The Church organizes so-called “advice-giving sessions” for converts and would-be converts to
other religions reportedly in order to dissuade them. The Shehata case angered Islamists and some
protested outside a mosque adjacent to Al Qiddissin calling for her release.
On January 23, 2011, Egyptian authorities accused a Palestinian militant group in Gaza, known as
the Army of Islam, of perpetrating the suicide bombing on January 1 in Alexandria. The Interior
Minister also asserted that several Egyptians connected to the attack were in custody and had
provided details about how they were recruited by the Gaza group.41
Sudan Referendum and Nile River Basin
Perhaps of greatest direct concern to Egypt is the situation to its south in Sudan, where southern
Sudanese residents held a referendum on self-determination in January 2011. Maintaining the
unity of Sudan and preserving Egypt’s share of Nile River flows are primary Egyptian national
security interests. However, with the voting results expected to favor secession, Egyptian
diplomats have been scrambling for alternative solutions which would preserve the country’s
overall unity. Egypt has advocated for southern Sudan’s “confederation” with the north, whereby
each entity would be an independent country, but would share a single currency and have a single
foreign policy. This approach has been rejected by many including the United States. Egypt also
has sought to delay the referendum to no avail. For several years, Egypt has been preparing for a
possible southern Sudanese state and has helped build hospitals, schools and power stations in the
south in order to curry influence there. It has dispatched 1,200 observers and peacekeepers to the
south. In November 2008, President Mubarak made a historic visit to Juba, the capital of Sudan’s
semiautonomous southern enclave.
Egypt fears that its share of the Nile will be curtailed by either a new southern Sudanese state or
other upstream countries further south. The Nile is the lifeblood of Egypt and its main source of
freshwater. The Blue Nile and White Nile converge in Sudan’s capital of Khartoum. According to
one Egyptian academic, “For Egypt, a threat to the Nile constitutes a threat to national security....
In the 1970s, when Ethiopia prepared to embark on river projects that infringed on Egypt's share
of water, (late president Anwar) Sadat threatened to declare war in response.” In late 2009,
Ethiopia's prime minister, Meles Zenawi, reportedly stated publicly that Egypt cannot win a war
against Ethiopia over Nile water sharing.42 The Blue Nile begins in Lake Tana in Ethiopia, where
85% of the Nile waters originate.
In April 2010, Ethiopia, Uganda, Tanzania, Kenya, and Rwanda agreed to their own Nile Basin
Initiative formula plan (formally known as the Comprehensive Framework Agreement) for
sharing the river. Under their plan, each country would have more freedom to build irrigation and
dam projects than is currently allowed. The Democratic Republic of Congo and Burundi have yet
to sign the deal. Under agreements dating back to 1929 and 1959, Egypt and Sudan (after its
independence in 1956) controlled 80% of the Nile’s entire flow. Egypt is demanding that it retain
its share while providing more economic aid and water efficiency assistance to upstream states.
Egypt and Sudan have until May 2011 to resume negotiations, or else the upstream countries have
said they will activate the new agreement.

41 "Egypt Links Palestinians to Attack at Church," New York Times, January 23, 2011.
42 "Pope's Mediation Needed over Nile Tensions with Ethiopia," Economist Intelligence Unit, January 2011.
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U.S.-Egyptian Relations
Though U.S.-Egyptian relations are rife with tension owing to the democracy issue and Egyptian
disappointment with a perceived lack of U.S. pressure on Israel to compromise with the
Palestinians, the Obama Administration has made efforts to calm the diplomatic atmosphere.
Aside from the State Department’s recent mild admonishment of Egypt’s 2010 parliamentary
elections,43 high-level officials have largely refrained from publicly admonishing Egypt’s poor
human rights and democracy record. U.S. foreign assistance levels remain unchanged (the
FY2011 request is $1.55 billion, same as 2010) despite some calls from opponents of aid to Egypt
to either cut or condition aid. John Holdren, Director of the White House Office of Science and
Technology Policy, has said that 2011 will be the U.S.-Egypt Year of Science, celebrating U.S.-
Egypt engagement in science, promoting interest among young Egyptians in science-related
careers and research, and promoting digital engagement among the Egyptian science community
with U.S. peers and institutions.
Overall, with the peace process stalled, Egypt preoccupied with Mubarak’s succession, and the
rise of other, arguably more dynamic, actors in the region such as Turkey and Saudi Arabia, Egypt
plays a less prominent role in Middle Eastern diplomacy despite its self-image as a regional
powerhouse. Egyptians partially blame this decline on their country’s close relationship with the
United States, and some analysts believe that over time, though Egypt and the United States
appear set to continue to cooperate on military and intelligence issues, Egypt will move in a more
independent direction, much like Turkey has in recent years.
U.S. Foreign Assistance to Egypt
Overview
The unrest of January 2011 suggests that the terms of recent debate over U.S. assistance to Egypt
may change significantly in the coming months. Since 1979, Egypt has been the second-largest
recipient, after Israel, of U.S. foreign assistance. In FY2010, Egypt was the fifth-largest aid
recipient behind Afghanistan, Israel, Pakistan, and Haiti, respectively. In the past decade, overall
U.S. assistance to Egypt has declined from $2.1 billion in FY1998 to $1.55 billion in FY2010
owing to a gradual reduction in economic aid. In July 2007, the 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 Jordan, the Bush Administration did not sign a bilateral MOU with the Egyptian
government.44 Congress typically earmarks foreign assistance for Egypt in the foreign operations
appropriations bill.

43 “We are disappointed by reports in the pre-election period of disruption of campaign activities of opposition
candidates and arrests of their supporters, as well as denial of access to the media for some opposition voices. We are
also dismayed by reports of election-day interference and intimidation by security forces. These irregularities call into
question the fairness and transparency of the process.” See, U.S. State Department, “Egypt's Parliamentary Elections,”
Office of the Spokesman, Washington, D.C., November 29, 2010.
44 A year after the 2007 U.S.-Israel Memorandum of Understanding (MOU), the U.S. and Jordanian governments
reached an agreement whereby the United States will provide a total of $660 million in annual foreign assistance to
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Debate over U.S. Assistance to Egypt
Although U.S. assistance has helped cement what many deem to be a successful 30-year Israel-
Egypt peace treaty, as time has passed, critics of continued U.S. assistance to Egypt have grown
more vocal in arguing that U.S. aid props up a repressive dictatorship and that, to the extent that
any U.S. funds are provided, policymakers should channel them toward supporting opposition or
civil society groups. Over the past five years, Congress has debated whether U.S. foreign aid to
Egypt should be conditioned on, among other things, improvements in Egypt’s human rights
record, its progress on democratization and religious freedom, and its efforts to control the Egypt-
Gaza border. Some members believe that U.S. assistance to Egypt has not been effective in
promoting political and economic reform and that foreign assistance agreements must be
renegotiated to include benchmarks that Egypt must meet to continue to qualify for U.S. aid.
Successive administrations, some lawmakers, and the Egyptian government assert that U.S.
assistance to Egypt is symbolic of a strong strategic partnership which directly benefits U.S.
national security interests. Proponents of strong bilateral ties argue that Egypt is key to the United
States maintaining a strong military presence in the oil-rich Persian Gulf and projecting power in
south and central Asia. Reducing Egypt’s aid, they argue, would undercut U.S. strategic interests
in the region, and could jeopardize the Mubarak government’s support for Middle East peace,
U.S. naval access to the Suez Canal, and U.S.-Egyptian intelligence cooperation. U.S. military
officials argue that continued U.S. military support to Egypt facilitates strong military-to-military
ties. The U.S. Navy, which sends an average of a dozen ships through the Suez Canal per month,
receives expedited processing for nuclear warships to pass through the Canal, a valued service
that can normally take weeks otherwise required for other foreign navies. Egypt also provides
over-flight rights to U.S. aircraft. In addition, some U.S. lawmakers argue that cutting aid,
particularly military assistance, harms the United States since all of Egypt’s FMF must be spent
on American hardware and associated services and training. Others question the will or ability of
the Egyptian government to change the terms of its long-standing bilateral partnership with the
United States because of the government’s displeasure with U.S. criticism and pressure for
reform.
Economic Aid
The United States has significantly reduced economic aid to Egypt over the last decade. There are
several reasons for the reduction in U.S. assistance. Overall, U.S. economic aid to Egypt has been
trending downward due to a 10-year agreement reached in the late 1990s known as the “Glide
Path Agreement.” In January 1998, Israeli officials 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, the United States reduced ESF aid to Egypt from $815
million in FY1998 to $411 million in FY2008.45 For FY2011, the Administration is requesting
$250 million in ESF for Egypt, the same amount it has received since FY2009.

(...continued)
Jordan over a five-year period. Under the terms their non-binding MOU, this first-of-its-kind deal commits the United
States, subject to future congressional appropriations and availability of funds, to providing Jordan with $360 million
per year in Economic Support Funds (ESF) and $300 million per year in Foreign Military Financing (FMF).
45 In FY2003, Egypt, along with Israel and several other governments in the region, received supplemental assistance as
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Funding for Democracy Promotion
Each year, a portion of USAID-managed economic aid is spent on democracy promotion
programs in Egypt, a policy that has been a lightning rod for controversy over the last seven
years. On principle, the Egyptian government rejects U.S. assistance for democracy promotion
activities, though it has grudgingly accepted a certain degree of programming. On the other hand,
democracy activists believe that the U.S. government, particularly during the Obama
Administration, has not been aggressive enough in supporting political reform in Egypt. Often,
the Administration is caught between these polar opposites.
The degree of U.S. direct support for civil society groups is a major issue. The Egyptian
government has staunchly opposed foreign support to independent civic groups that demand
government accountability, as well as civic groups that have not received government approval.
During the Bush Administration, policymakers and members of Congress directed some amounts
of Economic Support Funds toward direct support to Egyptian non-governmental organizations
(NGOs). However, some experts note that only a small proportion of USAID’s democracy and
governance (D&G) funds are spent on independent Egyptian groups and an even smaller
proportion to groups that do not receive approval from the Egyptian government. The vast
majority of USAID D&G assistance goes to Government of Egypt-approved consensual,
government-to-government projects.46
Most importantly, 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 FY2009 (see below).47 Egypt claims
that U.S. assistance programs must be jointly negotiated and cannot be unilaterally dictated by the
United States. P.L. 111-117, Consolidated Appropriations Act, FY2010, contains 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.48
As overall ESF aid to Egypt has decreased, so too has U.S. democracy assistance. For FY2009,
the Bush Administration unilaterally cut overall economic aid to Egypt by more than half,
requesting $200 million in ESF. Therefore, because U.S. economic assistance is divided among

(...continued)
part of the FY2003 Iraq Emergency Supplemental Appropriations Act (P.L. 108-11). It included $300 million in ESF
for Egypt, which could have been used to cover the costs of up to $2 billion in loan guarantees. The loan guarantees
were to be issued over three years.
46 CRS conversation with Tamara Cofman Wittes, Director, Middle East Democracy and Development Project,
Brookings Institution, September 1, 2009.
47 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.”
48 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.”
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several sectors (health, education, economic development, and democracy promotion), fewer
funds were available in FY2009 for D&G aid ($20 million instead of previous appropriations of
up to $50 million). P.L. 111-117, the Consolidated Appropriations Act, FY2010, provided $25
million in economic aid for democracy promotion (or 10% of total economic aid).
Perhaps in order to ease tension with the Egyptian government, the Obama Administration has
reduced funding for U.S.-based NGOs operating in Egypt while increasing funding for state-
approved and unregistered Egyptian NGOs (see table below). Since FY2009, the Administration
has used other State Department aid accounts, such as the Middle East Partnership Initiative
(MEPI) and the Human Rights and Democracy Fund (HRDF), to support Egyptian and
international NGOs. In October 2009, USAID’s Inspector General issued an audit of the agency’s
democracy and governance activities in Egypt. Among other findings, the audit concluded that:
The impact of USAID/Egypt’s democracy and governance activities has been limited based
on the programs reviewed. In published reports, independent nongovernmental organizations
ranked Egypt unfavorably in indexes of media freedom, corruption, civil liberties, political
rights, and democracy. Egypt’s ranking remained unchanged or declined for the past 2 years,
and the impact of USAID/Egypt’s democracy and governance programs was unnoticeable in
indexes (sic) describing the country’s democratic environment….The Government of Egypt
signed a bilateral agreement to support democracy and governance activities (page 5), but it
has shown reluctance to support many of USAID’s democracy and governance programs and
has impeded implementers’ activities. Despite the spirit with which the U.S. Congress
espoused the civil society direct grants program, the Government of Egypt’s lack of
cooperation hindered implementers’ efforts to begin projects and activities through delays
and cancellations.49


49 USAID, Audit of USAID/Egypt’s Democracy and Governance Activities (Audit Report No. 6-263-10-001-P), October
27, 2009.
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Table 1. U.S. Direct Funding to International and Egyptian NGOs


FY2008
FY2009
FY2010
FY2011 Request
Democracy and
Governance
Total
54,850,315 23,539,643 29,000,000 25,000,000

USAID
54,800,000 20,000,000 25,000,000 25,000,000

DRL
0 2,057,000 2,000,000
n/a


MEPI
50,315 1,482,643 2,000,000
n/a

Civil Society
Total
27,900,315 9,539,643 25,000,000 21,000,000

USAID
27,850,000 6,000,000 21,000,000 21,000,000

DRL
0 2,057,000 2,000,000
n/a


MEPI
50,315 1,482,643 2,000,000
n/a

Egyptian
unregistered
orgs
925,286 1,482,643 2,000,000
n/a

USAID
925,286 0 0

n/a

MEPI
0 1,482,643 2,000,000

n/a
Egyptian
registered orgs
5,669,529
5,000,000
10,000,000
n/a
USAID
5,619,214
5,000,000
10,000,000
n/a

MEPI
50,315 0 0

US registered
groups
5,801,846 1,000,000 1,000,000
TBD

USAID
5,801,846 1,000,000 1,000,000


US unregistered
groups

15,503,654 2,057,000 2,000,000
TBD

USAID 15,503,654 0 0

Source: U.S. State Department, Bureau of Near Eastern Affairs.
U.S.-Egyptian Science, Business, and Technological Cooperation
President Obama’s 2009 speech in Cairo envisioned greater U.S. collaboration with Middle
Eastern and Muslim-majority nations. As a result, the Administration has created several new
small-scale initiatives, dubbed the Cairo Initiatives, to promote science, business, and technical
cooperation with certain countries in the region, notably Egypt. In December 2010, the United
States launched the President’s Global Innovation through Science and Technology (GIST)
program in Alexandria, Egypt. Egypt also is a significant participant in the Administration’s
Global Entrepreneurship program (GEP), a USAID-funded program designed to assist
entrepreneurs in Muslim communities around the world. Several GEP pilot programs have been
launched in Egypt to train entrepreneurs and assist them with access to foreign investment. In
January 2011, a GEP delegation traveled to Egypt to meet with Egyptian businessmen and learn
of new investment opportunities. According to the U.S. State Department's Senior Advisor for
Global Entrepreneurship Steven Koltai, “Regional investments in economic reform and human
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and capital infrastructure in Egypt provide a strong foundation for entrepreneurs and investors,
both local and international.”
In 2010, the Overseas Private Investment Corporation (OPIC) invested $100 million in a fund
managed by a subsidiary of Egyptian private equity firm Citadel Capital. The investment was
touted by the Administration as part of President Obama’s outreach to the Muslim world and U.S.
efforts to spur entrepreneurship.
In addition, the Administration has proclaimed that 2011 is the year of U.S.-Egypt science. One of
President Obama’s science envoys, Dr. Ahmed Zewail, a Nobel prize-winning Egyptian
American, has visited Egypt several times. In May 2010, the United States announced that the
U.S.-Egypt Science and Technology Joint Fund will double its annual grants (from $4 million to
$8 million) for Egyptian and American scientific collaboration.
Military Aid
The Administration has requested $1.3 billion in FMF for Egypt in FY2011—the same amount it
received in FY2010. FMF aid to Egypt is divided into three general categories: (1) acquisitions,
(2) upgrades to existing equipment, and (3) follow-on support/maintenance contracts.50 According
to U.S. and Egyptian defense officials, approximately 30% of annual FMF aid to Egypt is spent
on new weapons systems, as Egypt’s defense modernization plan is designed to gradually replace
most of Egypt’s older Soviet weaponry with U.S. equipment.51 That figure is expected to decline
over the long term due to the rising costs associated with follow-on maintenance contracts.
Egyptian military officials have repeatedly sought additional FMF funds to offset the escalating
costs of follow-on support. They point out that as costs rise, static aid appropriations amount to a
reduction in net assistance.
U.S.-Egyptian coproduction of the M1A1 Abrams Battle tank is one of the cornerstones of U.S.
military assistance to Egypt. A coproduction program began in 1988. 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. 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.52
Egypt also receives Excess Defense Articles (EDA) worth hundreds of millions of dollars
annually from the Pentagon.53 Egyptian officers participate in the International Military and

50 According to U.S. defense officials, Egypt only allocates the minimum amount of FMF funds necessary for follow-
on maintenance, resulting in inadequate support for weapon system sustainment.
51 According to a 2006 Government Accountability Office report, over the life of Egypt’s FMF program, through
August 2005, Egypt had purchased 36 Apache helicopters, 220 F-16 aircraft, 880 M1A1 tanks, and the accompanying
training and maintenance to support these systems, among other items. See Government Accountability Office,
“Security Assistance: State and DOD Need to Assess How the Foreign Military Financing Program for Egypt Achieves
U.S. Foreign Policy and Security Goals.,” GAO-06-437, April 2006.
52 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.
53 According to the Defense Security Cooperation Agency (DSCA), past EDA sales and grant transfers have included
two PERRY class and two KNOX frigates, numerous HAWK parts, mine rakes, helicopter spare parts, assorted
(continued...)
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Education Training (IMET) program54 ($1.4 million requested for FY2011) in order to facilitate
U.S.-Egyptian military cooperation over the long term. IMET assistance makes Egypt eligible to
purchase training at a reduced rate. Bright Star is a multinational training exercise co-hosted by
the United States and Egypt that helps foster the interoperability of U.S. and Egyptian forces and
provides specialized training opportunities for U.S. Central Command Forces (CENTCOM) in
the Middle East. Eagle Salute is a U.S.-Egyptian joint maritime training exercise conducted
annually in the Red Sea.
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
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 importantly, 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.
Recent Arms Sales Notifications
In FY2010, the Defense Security Cooperation Agency (DSCA) notified Congress of the
following proposed arms sales to Egypt using FMF funds:
• July 2, 2010—40 Skyguard AMOUN Solid-State Transmitters to support the
upgrade of the Skyguard-SPARROW Launcher/Illuminator System, prime
contractor is Raytheon Integrated Defense Systems in Tewksbury, MA, estimated
value: $77 million.
• July 2, 2010—Continuation of technical services in support of four OLIVER
HAZARD PERRY and two KNOX CLASS Frigates, prime contractor is VSE
Global in Alexandria, Virginia, estimated value: $210 million.
U.S.-Egyptian Trade
Egypt is the 48th largest trading partner of the United States, which has an annual trade surplus
with Egypt amounting to $3.13 billion in 2009. The United States is Egypt’s largest bilateral
trading partner. Egypt is one of the largest single markets worldwide for American wheat and
corn and is a significant importer of other agricultural commodities, machinery, and equipment.
The United States also is the second-largest foreign investor in Egypt, primarily in the oil and gas
sector. Since the mid-1990s, Egyptian officials have sought to negotiate a Free Trade Agreement
(FTA) with the United States, claiming that an Egyptian-American FTA could significantly boost
Egypt’s economy. However, due to an array of concerns both Egypt-specific (human rights,
intellectual property) and macroeconomic, an Egyptian-American FTA has not moved forward.

(...continued)
armored vehicles (M60 tanks and M113 APCs) and various types of munitions.
54 Egyptian officers participating in IMET study and train at the Naval War College in Newport, Rhode Island, and
National Defense University at Fort McNair in Washington, D.C.
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In 1996, Congress authorized the creation of Qualified Industrial Zones (QIZ) in order to entitle
goods jointly produced by Israel and either Jordan or Egypt to enter the United States duty free.
In December 2004, Egypt finally reached an agreement with Israel to designate several QIZs in
Egypt under the mandate of the U.S.-Israeli Free Trade Agreement. Goods produced in Egyptian
QIZs allow Egyptian-made products to be exported to the United States duty-free if the products
contain at least 10.5% input from Israel. Egypt would like to see this percentage reduced to
around 8%, which is the case with the U.S.-Jordanian-Israeli QIZ agreement. Most products
exported from Egyptian QIZs are textiles, and products manufactured in QIZs now account for
one-third of Egyptian exports to the United States.

Table 2. Recent U.S. Foreign Assistance to Egypt
($ in millions)
Fiscal Year
Economic
Military
IMET
Total
1948-1997 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
250.0 1,300.0 1.4 1,551.4
Request
Total
30,820.8 39,211.8 43.0 70,075.6


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Table 3. U.S. Foreign Assistance to Egypt, 1946-1997
(millions of dollars)
Misc.
Military
Military
I.M.E.T
Economic
Year Total Loan
Grant
Grant
Grant
D.A. Loan
D.A. Grant
ESF Loan
ESF Grant
P.L. 480 I
P.L. 480 II
1946
9.6 — — —
9.3 Surplus
0.3 UNWRA
— — — — — —
1948
1.4 — — —
1.4
Surplus
— — — — — —
1951
0.1 — — —
0.1
Tech
— — — — — —
Asst
1952
1.2 — — — — — 0.4 — — — 0.8
1953
12.9 — — — — — 12.9 — — — —
1954 4 — — — — — 3.3 — — — 0.7
1955
66.3 — — — — 7.5 35.3 — — — 23.5
1956
33.3 — — — — — 2.6 — — 13.2 17.5
1957 1 — — — — — 0.7 — — — 0.3
1958
0.6 — — — — — 0 — — — 0.6
1959
44.8 — — — — — 2 — — 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 2.2 20 — 114 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
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Misc.
Military
Military
I.M.E.T
Economic
Year Total Loan
Grant
Grant
Grant
D.A. Loan
D.A. Grant
ESF Loan
ESF Grant
P.L. 480 I
P.L. 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
102.8
201.7 4.4
TQ
552.5
— — — — — — 429
107.8
14.6 1.1
1977
907.8
— — — — — — 600
99.2
196.8 11.7
1978
943.2
— — 0.2
0.1
Narc.
— —
617.4
133.3
179.7 12.5
1979
2588.5
1500 — 0.4 — — — 250 585
230.7 22.4
1980
1167.3
— — 0.8 — — — 280 585
285.3 16.1
1981
1681.2
550 — 0.8 — — — 70 759
272.5 28.9
1982
1967.3
700 200 2.4 — — — — 771 262 31.9
1983
2332
900 425 1.9 — — — — 750
238.3 16.8
1984
2470.8
900 465 1.7 — — — —
852.9
237.5 13.7
1985
2468.7
— 1175
1.7 — — — —
1065.1
213.8 13.2
1986 2539.1 — 1244.1 1.7 — — — — 1069.2
217.5 6.6
1987 2317 — 1300 1.8 — — — — 819.7
191.7 3.9
1988
2174.9
— 1300
1.5 — — — —
717.8
153 2.6
1989
2269.6
— 1300 1.5 — — 1.5 — 815
150.5 1.2
1990 2397.4 — 1294.4 1.6 — — — — 898.4 203

1991
2300.2
— 1300
1.9 — — — —
780.8
165 52.5
1992
2235.1
— 1300
1.8 — — — —
892.9
40.4 —
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Misc.
Military
Military
I.M.E.T
Economic
Year Total Loan
Grant
Grant
Grant
D.A. Loan
D.A. Grant
ESF Loan
ESF Grant
P.L. 480 I
P.L. 480 II
1993
2052.9
— 1300
1.8 — — — —
747.0
— 4.1
1994
1868.6
— 1300
0.8 — — — —
561.6
35 6.2
1995
2414.5
— 1300 1 — — 0.2 —
1113.3
— —
1996
2116.6
— 1300 1 — — — — 815 — 0.6
1997 2116 — 1300 1 — — — — 815 —

Total 45669.4 4550 17803.5 27.3.0 11.2 80.7 82.8 2620.7 15923.8 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. 416 food donations.
Q = Transition Quarter; change from June to September fiscal year
* = less than $100,000
I.M.E.T. = International Military Education and Training
UNRWA = United Nations Relief and Works Agency
Surplus = Surplus Property
Tech. Asst. = Technical Assistance
Narc. = International Narcotics Control
D. A. = Development Assistance
ESF = Economic Support Funds
P.L. 480 I = Public Law 480 (Food for Peace), Title I Loan
P.L. 480 II = Public Law 480 (Food for Peace), Title II Grant


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Egypt: Background and U.S. Relations



Author Contact Information

Jeremy M. Sharp

Specialist in Middle Eastern Affairs
jsharp@crs.loc.gov, 7-8687


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