Cutting Aid to Egypt Not as Simple as it Sounds

Since the early 1980s, the United States has granted Egypt an extraordinary ability to place orders with American defense contractors that are worth far more than Congress has appropriated for military aid, according to U.S. officials. Under the mechanism, called cash-flow financing, Egypt can submit large orders for equipment that takes years to produce and deliver, under the assumption that U.S. lawmakers will continue to allocate the same amount in military aid year after year.

Egypt — the only country besides Israel that is granted such a privilege by Washington — has effectively been given a credit card with a maximum limit in the billions of dollars, experts say.

The complex financing arrangement is making a tough policy debate over the future of military aid to Egypt far more complicated than is publicly acknowledged. Lawmakers reassessing Washington’s $1.3 billion in yearly military aid to Egypt in the aftermath of the country’s military coup have been stunned to learn just how difficult it would be to shut off the pipeline.

“It has gotten us into a situation where we are mortgaged years into the future for expensive equipment,” said Sen. Patrick J. Leahy (D-Vt.), chairman of the Appropriations subcommittee on the State Department, foreign operations and related programs. “It is not a sensible way to carry out U.S. policy toward a country of such importance, where circumstances have changed, our interests and needs change, our budget is under stress, and yet we’ve been stuck on autopilot for more than 25 years.”

During decades of autocratic rule in Egypt, the arrangement worked like a charm. The aid package delivered a windfall for U.S. defense contractors as Egypt-bound tanks, fighter planes and missiles rolled off assembly lines across the United States, gradually replacing Egypt's aging Soviet hardware and deepening that nation’s reliance on U.S.-made gear. The Pentagon cashed in on the bounty, getting expedited access to the Suez Canal for Navy ships, overflight rights for military aircraft and plenty of face time with Egypt’s generals. Egypt, meanwhile, developed one of the region’s strongest militaries.

From 2008 to 2012, Washington signed off on more than $8.5 billion worth of military orders placed by the Egyptian government, even though Congress appropriated $6.3 billion for defense aid to Cairo in that period, according to the latest data published by the Pentagon. During those five years, Egypt received equipment worth $4.7 billion.

The $3.8 billion gap between contract cost estimates and deliveries is a revealing but incomplete measure of the vast pipeline of items earmarked for Egypt that would be thrown into limbo if Washington were to cut off aid to Cairo.

http://articles.washingtonpost.com/2013-07-25/world/40863675_1_military-aid-egypt-military-coup

I say we give them a ton of 5 hour energy drinks and a bunch of webcams. I want to watch the fun. Almost as good as reality TV.

[quote="Sal"]Since the early 1980s, the United States has granted Egypt an extraordinary ability to place orders with American defense contractors that are worth far more than Congress has appropriated for military aid, according to U.S. officials. Under the mechanism, called cash-flow financing, Egypt can submit large orders for equipment that takes years to produce and deliver, under the assumption that U.S. lawmakers will continue to allocate the same amount in military aid year after year.

Egypt — the only country besides Israel that is granted such a privilege by Washington — has effectively been given a credit card with a maximum limit in the billions of dollars, experts say.

The complex financing arrangement is making a tough policy debate over the future of military aid to Egypt far more complicated than is publicly acknowledged. Lawmakers reassessing Washington’s $1.3 billion in yearly military aid to Egypt in the aftermath of the country’s military coup have been stunned to learn just how difficult it would be to shut off the pipeline.

“It has gotten us into a situation where we are mortgaged years into the future for expensive equipment,” said Sen. Patrick J. Leahy (D-Vt.), chairman of the Appropriations subcommittee on the State Department, foreign operations and related programs. “It is not a sensible way to carry out U.S. policy toward a country of such importance, where circumstances have changed, our interests and needs change, our budget is under stress, and yet we’ve been stuck on autopilot for more than 25 years.”

During decades of autocratic rule in Egypt, the arrangement worked like a charm. The aid package delivered a windfall for U.S. defense contractors as Egypt-bound tanks, fighter planes and missiles rolled off assembly lines across the United States, gradually replacing Egypt's aging Soviet hardware and deepening that nation’s reliance on U.S.-made gear. The Pentagon cashed in on the bounty, getting expedited access to the Suez Canal for Navy ships, overflight rights for military aircraft and plenty of face time with Egypt’s generals. Egypt, meanwhile, developed one of the region’s strongest militaries.

From 2008 to 2012, Washington signed off on more than $8.5 billion worth of military orders placed by the Egyptian government, even though Congress appropriated $6.3 billion for defense aid to Cairo in that period, according to the latest data published by the Pentagon. During those five years, Egypt received equipment worth $4.7 billion.

The $3.8 billion gap between contract cost estimates and deliveries is a revealing but incomplete measure of the vast pipeline of items earmarked for Egypt that would be thrown into limbo if Washington were to cut off aid to Cairo.

http://articles.washingtonpost.com/2013-07-25/world/40863675_1_military-aid-egypt-military-coup[/quo

If it was called what it was....a coup then aid is mandated to be cut...but agree that under the circumstances it appears that there is no choice but the military...certainly isn't the brotherhood!...Too bad we (cowh) back the wrong side initially....