Tuesday, September 10, 2013

U.S. military aid to Egypt

An insight into the depths of the world of American military aid to Egypt 
David Schenker 
The Washington Institute for Middle East Policy 
September 4, 3102 
Over the past three decades, Washington gave to Egypt more than $ 40 billion in military aid and so 
Through the aid program is today a total of 80% of the annual military procurement budget of the country. 
Since July, encouraged the overthrow of military dictator Mohamed Muse, and the subsequent crackdown on supporters 
Calls for in Washington to stop this ad. However, the size and structure of the Foreign Military Financing program 
Of the U.S. State Department on Egypt - which is the second largest program of its kind in the world - 
Will make the issue of the political transformation of this type is complex, lengthy and costly in many ways. 
Special conditions 
Egypt is currently receiving 1.3 billion each year with respect to foreign military financing program in the framework of a program that allows her 
To purchase military equipment produced by the United States as well as technical assistance in coordination with the Ministries of Foreign Affairs 
And defense. In the Office of Military Cooperation) of the object at the U.S. Embassy (, U.S. officials are working together with the 
Their Egyptian counterparts to determine the priorities of purchase, for example, take out old Soviet equipment from service and gradually improve the capabilities of joint work with the American forces. 
Besides Israel, Egypt is a state-of-the only countries which shall receive funding from the Foreign Military Financing program 
And which Thzian advantage "exchange" early in the beginning of the year, where the funds are deposited in a U.S. bank accounts in 
New York Federal Reserve Bank and allows the compelling benefit accrued interest on these deposits for the purchase of equipment 
Additional. When these funds are deposited, it is converted from the Fed to a trust fund. 
Egypt will receive this year's sum amount fraction less than the $ 1.3 billion due to the reduction in expenditure on the assumption 
Continuation of the program. As of July, has been transferred U.S. $ 649 million to the Trust Fund, leaving 
About $ 585 million at the Federal Reserve Bank. 
The special requirement allows another compelling "financing purchases of future financial flows through" companies are building sell 
U.S. Defense weapons. Unlike most of the other beneficiaries of the Foreign Military Financing program, you do not have 

The Egyptian government should pay in advance the cost of expensive weapons systems and contracted with the United States, but 
You may instead meet financial obligations covered by the grants planned for the future military financing program 
Exterior. Normally, Cairo will have to pay more than $ 2.5 billion in the form of obligations payable to buy 
Weapons and support services from American companies at any time. 
And managed the technical aspects of the sales and transfers of foreign military financing program by the Defense Security Cooperation Agency 
It is a very specialized branch purchase and headed by a three-star general and supervised by the Office of the Undersecretary of the Ministry 
Defense for Political Affairs in the Ministry of Defense. Even with this expert control, funding through financial flows 
Future program makes FMF very complicated. Specifically, this means that - according to the GAO report 
Government - could not even the Defense Security Cooperation Agency to follow the obligations of the foreign military financing program in Egypt 
. Compared to the needs of their own exchange as well as allocations available before 1998 
Purchases by foreign military financing program on Egypt 
Specialization Cairo now nearly a third of what you get from funding from the Foreign Military Financing program to buy 
Of new equipment and the other third to modernize the equipment and the rest of the technical support provided by the U.S. companies. The segment was based 
Bulk of its purchases on several programs a huge stretch for many years and that of the purchase, including the local assembly of more than 
 Mi tank 1 er 1 and 224 F-16 aircraft and 10 Apache helicopters and thousands of Humvee vehicles 
It is multi-tasking Mdolbh compounds with high mobility capabilities as well as various ammunition), for example, systems 
Stinger man-portable air defense missiles Hellfire and Harpoon (and communication systems, radars and ships 
Freely. Perhaps the most prominent of these purchases and the highest cost was in December / December and so when you buy 20 F-16 aircraft 
An additional contract worth close to U.S. $ 3 billion. So far, been delivered eight of these aircraft, including four 
Aircraft that have been delivered in February. 
In spite of the U.S. commitment to Israel's qualitative military superiority, Washington usually sells for Egypt as requested 
Highly sophisticated weapons. Despite it being sometimes modify some or prevention systems supplied to maintain superiority 
Israeli. For example, some reports indicated that a 2013 deal to sell 90 anti-cruise missile 
-Ship Harpoon 2 has been delayed for a period of five years because of fears that the ground attack capabilities 
Exhibited by these missiles that would change the military balance between the two countries. To alleviate these concerns, has been reduced 
Capabilities of these missiles clearly. 
The status quo 
According to some estimates, Egypt, in front of more than $ 4 million in the form of contractual obligations payable being 
Paid by funding through future financial flows or worth more than three years of the program's 
FMF. After killing hundreds of Morsi supporters during the repressive security measures that have been taken month 
Last year, President Obama announced that Washington will review the FMF program to Egypt. In spite of the 


It is not the official announcement of this review, but the Defense Security Cooperation Agency also reported some reports delayed delivery 
Four F-16 aircraft and ten helicopters from Apache. 
It is believed that Cairo has committed themselves Bmedfoatha of companies and contractors during the month of October / November. If Washington continues 
To refrain from delivery of this equipment, the American taxpayers - however - they will have to fulfill this commitment. 
If the cancellation of contracts that have been signed with Egypt altogether, may be paid such cancellation costs owed by the companies 
The U.S. Foreign Military Financing program is likely, however, that the U.S. government will continue to keep this 
Equipment can even perform this conversion. 
Although Washington can pay these costs for companies and contractors of the funds in the Reserve Bank Account 
And the resumption of Federal contracts and the acquisition of equipment or even sold to other countries through military sales 
Foreign direct, but these options are not perfect in fact. The U.S. government does not need to service 
Massive and maintenance components contained these contracts will look some of this equipment less attractive for those countries capable 
To pay the bill. For example, are not equipped F-16 aircraft missiles Egyptian Joe - Joe medium-term 
Advanced AIM-120 model, but has been providing, of course, less and capabilities of the model rockets AIM-7. 
Impact of this cut aid 
In addition to damaging military relations - between the U.S. military and Cairo - which are of particular importance 
Because the military is running things now in Egypt again - the suspension of foreign military financing program of 
Would serve to undermine relations with the civilian government and lead to a further erosion of the status of the Washington already low 
The Egyptians and perhaps also lead to a fragile U.S. relations with Saudi Arabia, which has supported the 
Public coup in July. Moreover, the Riyadh and the United Arab Emirates and Kuwait have plugged the gap which can 
Cairo to continue funding for military purchases. Donors have made these already since the coup and providing 09 
Billion dollars to help Egypt to promote its struggling economy. 
It is also possible for other scenarios that reduce American influence. For example, it is possible to fund the military 
Egyptian military purchases himself in the light of the central bank that lent billion in December / December 2011 
. Worse than that, the news about cut U.S. aid could encourage the Muslim Brotherhood 
The Egyptian strengthen its determination to tackle the army which will contribute to further instability in the country. Instead, 
You may be trying China and Russia, maximizing the use of This Bhlolhma comment replaces Washington in the Egyptian finance purchases 
Systems of their own, despite not Rgehanah this matter. 
It is not clear whether the cessation of foreign military financing program would be followed by a cessation of the $ 1.8 million 
Dollars provided in the form of annual payments for education and military training American International, which is a grant attend 
Which hundreds of Egyptian officers to study in the United States. Also it is also not clear what this would mean suspension 
U.S. transfers of equipment and training at the level of operational capacity الاستعدادية and already limited the Egyptian state. 

The aid cutoff may also makes major U.S. strategic objectives in Egypt at risk, including cooperation 
In the fight against terrorism and priority access to the Suez Canal with respect to American warships and overflights 
U.S. military is relatively restricted. Between 2001 and 2005, the U.S. military aircraft, including more than 35 
A sorties in the Egyptian airspace - and it is often after notification shortly - at a time in which the 
U.S. military ships, including nearly 611 expedited passage through the Suez Canal. In addition, the support of the army 
Egyptian peace treaty at Camp David - Israeli and coordination - Egyptian Premier League on the security situation in the Sinai 
Supported by the Convention - may also be affected. 
As for the effects of the Interior, the cessation of the aid program would be a blow at least a short-term military companies 
America, including Lockheed Martin), which makes F-16 aircraft (Boeing), which makes Apache helicopters (. 
It is likely to suffer dozens of small companies and subsidiaries of more serious economic consequences. 
Conclusion 
Could result in the possible cessation of foreign military financing program with Egypt, some of the results are costly 
At the level of strategic and internal affairs for the United States. In light of the view espoused by the army 
Egyptian in his struggle with the Muslim Brotherhood, such a move is likely to prove ineffective in the formation of 
Decision-making in Cairo. For this reason, it is even cut off aid appeared to be consistent with what has been a year of previous legislation, 
However, it may result in a backfire politically. 
If Washington wants to send a message to Cairo without stopping the entire aid program, it is possible to end the exchange 
Early Foreign Military Financing program, which was considered a long time ago a requirement is not necessary. The more important thing 
However, that should the Obama administration urge Congress to review the legislation, which gives Egypt funding through feature 
Future financial flows. Without significant changes to the Foreign Military Financing program, you will not be in front of 
The United States only a few of the few options to evaluate its military assistance to Egypt in the near future....