Responses In Egypt To U.S. Aid Freeze: Between Anger And Apathy

On October 9, 2013, the U.S. administration announced a freeze of the economic aid and part of the military aid to Egypt.[1] The State Department said that following instructions from President Obama, it was decided "to maintain [the U.S.] relationship with the Egyptian government, while recalibrating our assistance to Egypt." Its statement stressed that "support that directly benefits the Egyptian people in areas like health, education and private sector development" would continue, as well as "assistance to help secure Egypt’s borders, counter terrorism and proliferation, and ensure security in the Sinai." In addition, the U.S. would "continue to provide parts for U.S.-origin military equipment as well as military training and education." However, it will continue freezing "the delivery of certain large-scale military systems and cash assistance to the government, pending credible progress toward an inclusive, democratically elected civilian government through free and fair elections." The statement noted further that the U.S. opposes violence as a means of resolving differences within Egypt, and that the issue of aid would be reviewed periodically.[2]

The partial freeze of the American aid to Egypt came after a series of moves indicative of the U.S. administration's reservations regarding the ousting of former Egyptian president Muhammad Mursi by Defense Minister 'Abd Al-Fattah Al-Sisi and regarding the conduct of the current Egyptian regime. Additional steps taken were the cancellation of a shipment of American F-16 fighter jets to Egypt, and of a joint military maneuver that was set to be held in September 2013.[3] According to Egyptian sources, the U.S. also froze the activity of the Egyptian-American Enterprise Fund – a $300 million project launched in April 2013 to invest in small and medium businesses and create jobs for young Egyptians.[4]

U.S. Foreign Assistance to Egypt (Fas.org, June 27, 2013).

It should be mentioned that, according to reports, the U.S. has been considering freezing aid to Egypt for several months, and that following these reports the Gulf States, led by Saudi Arabia, pledged to provide Egypt with the aid it would require.[5] And indeed, following Mursi's ouster, Saudi Arabia, the UAE and Kuwait pledged $12 billion in aid to Egypt, of which it has so far received $7 billion.[6] Having received this aid, Egypt recently withdrew its request for a $4.8 billion loan from the International Monetary Fund (IMF)[7] and returned a $2 billion deposit to Qatar, apparently after Qatar attempted to set conditions on this deposit.[8]

In response, the Egyptian foreign ministry announced that it saw the aid freeze as a mistake, both in terms of the decision itself and in terms of its timing. Egyptian Foreign Minister Nabil Fahmi said that U.S.-Egypt relations are currently "unstable." He stated that this instability "was not born today, and is not only the result of the mistaken American decision to temporarily suspend portions of its aid to Egypt," but stressed that today it is worse than in the past, due to the sensitive phase that Egypt and the entire region are going through. However, Fahmi added that he was not worried about the aid freeze, but rather saw it as a positive move that would prompt both countries to reexamine their relations in anticipation of official dialogue on the future of these relations. Fahmi said that "relations between Egypt and the U.S. are important to both countries and are beneficial in many ways." He also emphasized that Egypt should "open up to other rising powers, in light of the increasing number of foci of political, economic and social influence in the world order." According to him, "this will give Egypt's decision-makers many alternatives" and enable it to form partnerships with countries like Russia and China.[9] Addressing the American Chamber of Commerce in Cairo, Fahmi stated: "Egyptian-American relations differ from what they were prior to June 30, and, for the first time in 30 years, have become relations among equals. [10] The Egyptian foreign ministry spokesman said that the U.S. decision raises serious questions regarding its willingness to provide stable strategic support for the Egyptian security program, especially in light of the terrorist threats Egypt faces. He added that Egypt desires positive ongoing relations with the U.S., but will make its decisions with full independence and without outside influence.[11]

Articles published in Egyptian media associated with the current regime backed the official position on the aid freeze, expressed rage over the American decision, and interpreted it as evidence of U.S. backing of the Muslim Brotherhood (MB) regime, which they claim the U.S. sees as its ally. These articles portrayed the aid freeze as an act of revenge and a punishment for Mursi's ouster, and as an attempt to pressure the current regime to restore Mursi, or at the very least reincorporate MB members into the regime. Some tied the decision to the Egyptian court's September 23, 2013 decision to outlaw the MB movement and to Mursi's upcoming trial, which opens on November 4, 2013. At the same time, most of the articles claimed that the American decision would not have any real effect on the situation in Egypt and would not harm its economic status, and raised the possibility that Egypt would seek aid from Saudi Arabia, the Gulf States, Russia and China in place of the U.S. Some also raised the possibility to reexamine the peace accord with Israel, as part of which the U.S. committed to granting aid to Egypt. One writer advocated denying Egyptian airspace to the American air force, and revoking the privileges granted American warships passing through the Suez Canal. A few writers estimated that the peace accord with Israel would not be affected and that cooperation with the U.S. would continue unchanged, since they saw the American decision as stemming from internal political and economic considerations.

Websites associated with the MB did not deal with the U.S. aid freeze as much, but those writers who did address the topic expressed their displeasure with the American aid, claiming that the U.S. had used it to encourage the Egyptian army to oust Mursi.

On November 3, 2013, American Secretary of State John Kerry visited Egypt for the first time since Mursi's ouster and met with Egyptian Interim President 'Adly Mansour. At a joint press conference with his Egyptian counterpart Nabil Fahmi, Kerry said: "The United States is a friend of the people of Egypt, of the country of Egypt, and we are a partner to your country... Egypt is a vital partner to America in this region... As President Obama has said, we are committed to work with and we will continue our cooperation with the interim government... We need to keep faith with the roadmap and the path ahead to continue the march to democracy. And we look forward to working together... The U.S.-Egypt relationship should not be defined by assistance. There are much bigger issues that matter to us, that concern us, that define the relationship... President Mansour wrote to President Obama some time ago suggesting a strategic dialogue between our countries, and I am pleased on behalf of President Obama to say to you today that we accept that invitation... The decision with respect to some aid, which has been held back for a period of time... it’s not a punishment. It’s a reflection of a policy in the United States under our law... This aid issue is a very small issue between us..."

Fahmi said in reply:"I mentioned a few days ago that U.S.-Egypt relations are witnessing some tension, but today in my close discussion with the Secretary, and also what Secretary Kerry has mentioned here today, I believe that the U.S. support for Egypt and the roadmap are all very positive indications, and we all seek to resume this relationship in a positive manner..."[12]

The following are excerpts from some articles published in Egyptian media in response to the U.S. aid freeze:

Al-Ahram: The U.S. Is Punishing Egypt For Mursi's Ouster, Supporting MB Terrorism

The October 11, 2013 editorial of the Egyptian daily Al-Ahram, titled "The U.S. Is Taking Revenge On Egypt," stated: "In its mistaken and near-sighted decision to slash military aid to Egypt, the U.S. provided further concrete proof, which is not open to doubt or to [different] interpretations, that it is executing a systematic plan to take revenge on Egypt and to pressure it, after [the U.S.] lost its strategic asset, [namely] the regime of former president Muhammad Mursi. The American move essentially reflects the extent of confusion and hesitancy that exists among decision-makers in the Obama administration. Washington operates according to the same logic and methods as the MB movement, which the Americans greatly relied upon to reorganize the Middle East. This is a system based on a denial of facts on the ground and the changes that have occurred in the Egyptian political arena since the June 30 revolution.

"[The American move] also indicates that the U.S. has no desire to see Egypt as a country with independent decision-making that protects its own sovereignty, but is rather interested in subordinate regimes that obey its orders and do not deviate from them. [The U.S.] is deluding itself [into thinking] that, if it avoids sending military equipment, jets and spare parts, it will break the Egyptian army and Egypt's prestige. This notion, if it indicates anything at all, indicates only foolish thinking and a poor [ability to] assess the situation and events in this burning region that could explode at any moment. Moreover, [the U.S.] is encouraging the MB to persist in its criminal attempts to destabilize the country, after this movement has made a public pact with Al-Qaeda and the takfiriyyoun [extremist Salafis who accuse other Muslims of heresy] who are directing their terrorism against military and police forces inside and outside the Sinai.

"Obama and his aides overlook [the fact] that Egypt has many alternatives. With [this] move, the U.S. weakens its allies' faith that it is truly committed to preserving the security and unity of Middle East countries [and is not] striving to undermine it and grant the terrorists extensive freedom of action. At the end of the day, it cries about terrorism and its actions, despite assisting it with its reckless conduct that exposes the political adventurism that has taken it over."[13]

The U.S. debates whether to stop the aid, cut it or freeze it...(Al-Ahram, Egypt, October 14, 2013)

The Special Relations With The U.S. Are Not A Catholic Wedding

Al-Ahram's October 21, 2013 editorial stated: "It seems that the administration of U.S. President Barack Obama does not understand that Egypt can get angry and that it can find alternatives – [in fact,] more than one strategic alternative – and that the special relations between Washington and Cairo that were established after the [Egypt-Israel] peace accord are not eternal and are not a Catholic wedding. On the contrary, we can open the dossier of these relations and reexamine them, and heed the many voices inside and outside Egypt that say these relations have been unsatisfactory from the Egyptian perspective. Cairo shouldered a heavy burden and did not receive the aid it deserved in return. Moreover, there is now clear proof that Washington has changed from being a party that is [merely] inclined towards Israel into one that strongly interferes in internal Egyptian affairs in a way that Cairo can no longer ignore or accept under the pretext of special relations.

"The Obama administration and some aberrant voices in Congress have stressed that Washington desires special relations with a certain faction instead of wanting friendship with the Egyptian people [as a whole]. They do not understand that balanced and friendly relations with the people are the ones that last, while relations that are inclined towards a certain political faction will not last, especially if these relations take place at the expense of the supreme interests of the Egyptian people..."[14]

Columnists: Russia And China Will Fill The Vacuum; U.S. Planes Must Be Banned From Egyptian Airspace

Many articles in the Egyptian press claimed that Egypt is better off without the American aid. Some of them called on the Egyptian regime to stop granting preferential rights to the U.S. military to operate in its territory, and concurrently to request assistance from Russia, China and North Korea. For example, former Egyptian MP Ala Al-Din 'Abd Al-Mun'im wrote in the daily Al-Watan: "I call on the Egyptian government and regime to announce that they welcome the American aid freeze and that there is no reason to not cease it altogether – both the economic and the military aid...

"This will trigger [Egyptian official] visits to Russia, China and even North Korea, to diversify the sources of Egyptian arms, as Gamal 'Abd Al-Nasser did [when he struck] the arms deal with Czechoslovakia in 1955. Concurrently, we must ban the U.S. air force from Egyptian airspace and force American warships to wait in line to pass through the Suez Canal, just like [ships from] any other country. The important thing is that the American administration understand Egypt's true stature and that [Egypt] restore its regional, international and Arab status [while ensuring] its political and military independence."[15]

In an article titled "A Debt Of Gratitude To Washington" in the Egyptian daily Al-Yawm Al-Sabi', columnist 'Adel Al-Sanhouri wrote: "Neither we nor the Al-Beblawi government should be surprised, amazed or shocked [at the American aid freeze], since the threat of an aid freeze has been made before – but I hope this time will be the last. Let us thank the U.S. for its foolish decision, since Egypt no longer needs this aid, for which it has made many concessions. In the balance of profit and loss, it is Washington and Israel who benefit from this '$2.1 billion' aid, since, [in return for] the American aid and grants, Egypt allows American jets to use Egyptian airspace and grants expedited licenses for hundreds of American warships to pass through the Suez Canal. This, in addition to its commitment to purchase military equipment from the U.S., and above all, its commitment to the Camp David Accords and to maintaining the stability of the relations with Israel.

"Therefore, ceasing or freezing the aid [only] absolves Egypt of the concessions that hurt the Egyptian national strategic depth. It is enough to look at what is happening in Sinai, from which Egypt was absent until it fell to the terrorists. [Ceasing or freezing the aid] opens the door to diversifying the sources of Egyptian arms and to relying on diverse global technology from East and West. [This decision] invites international powers like Russia and China to fill the void, now that America has withdrawn and Egypt and others wish to reach out and cooperate with Moscow or Peking."[16]

The Aid Freeze Could Affect The Camp David Accord

Writers in the Egyptian press indicated that the American aid freeze could prompt Egypt to reexamine the Egypt-Israel peace agreement, which is the basis of this aid. Others estimated that Egypt would continue honoring the agreement.

The daily Roz Al-Yousef stated in an editorial: "It's time for Egypt to respond to America as part of the direct conflict [between our two countries] by demanding to amend the Camp David Accord, which limits Egypt's actions in the Sinai. We have a desperate need to overcome terrorism [in the Sinai]. Let us take advantage of voices in the U.S. [Congress] that are themselves surprised by this American move, which was taken while Egypt is fighting terrorism and looks like an actual [admission] by Washington that it supports terrorism against Egypt. It seems that Obama and his administration ignored the fact that this aid program is not a gift from America to Egypt, but [is based on] mutual interests as part of the U.S.-sponsored Egypt-Israel peace [agreement]..."[17]

Conversely, Makram Muhammad Ahmad, a columnist for the Egyptian daily Al-Ahram, wrote: "I do not know if President Obama understood that his decision to reduce military aid constitutes a legal violation of the Egypt-Israel peace agreement... I know for a fact that Egypt will uphold the peace agreement with Israel, because peace is an Egyptian and Arab interest..."[18]

Egyptian Journalist: The Aid Freeze – An Internal American Matter

Some writers claimed that the American decision was a symbolic gesture stemming from internal considerations related to the U.S.'s economic difficulties. For example, in an article in the Egyptian daily Al-Watan, Egyptian journalist Mahmoud Al-Wari wrote: "There is a hidden angle that helps [us] understand this American decision, an angle relating to the internal American situation. Nobody has considered the pressures that President Obama is facing from his Republican opponents, especially regarding the vote on the Federal budget and the Republican stance that objects to approving this budget... What does this mean for Obama? It means that if Republicans do not agree to raise the Debt Limit and approve the budget within 17 months, the U.S. will be unable to pay its debt. This will create an unprecedented [situation] where the government operates without liquidity, which will bring about a global financial crisis like the one that occurred in 2008/2009, at the end of the George W. Bush [era] and was [the reason] that Obama inherited a U.S. on the verge of bankruptcy.

"Therefore, we do not discount the assumption that Obama... wanted to give Republicans a small carrot to satisfy them, in the form of [the issue of] aid [to Egypt], which they have routinely demanded to freeze or cease entirely. We must estimate that the decision is no more than a symbolic gesture. First, the freeze was not complete, but rather [applied to] a very small part of the aid, estimated at $260 million out of a total sum that could reach $1.55 billion, of which $1.3 billion is military aid, in addition to a deal to purchase missiles and jets. Second, the freeze is conditional upon the completion of the road map, which is undoubtedly moving in the right direction. I am almost certain that this freeze was done with the consent of the Egyptian side... I think that [Defense Minister] General 'Abd Al-Fattah Al-Sisi and the [other] Egyptian decision-makers agreed to this, as evident from the fact that the military establishment, which is the main victim of the freeze, did not make harsh or critical statements [about it]..."[19]

After visiting the U.S., Egyptian politician and former People's Assembly member Mustafa Al-Faqi likewise assessed that the aid freeze stemmed from internal American needs: "The position [in the U.S.] is slowly inclining towards Egypt every day. Furthermore, the Pentagon, [that is,] the U.S. Department of Defense, seems to be an ally and supports its Egyptian counterpart and understands the strategic value of its function. Therefore, the talk of an American aid freeze is meaningless drivel meant for local American consumption, because Egypt is fighting terrorism in the Sinai with American weapons and is not maneuvering between various powers, as some may think..."[20]

Obama, hanging off the cliff of the 'U.S. Economy', says 'No Aid' (Al-Ahram, Egypt, October 12, 2013)

MB Supporter: The Aid – A Tool Used By America To Prompt The Coup

MB websites barely addressed the U.S. aid freeze. Columnist 'Abd Al-Azeem Al-Badawi wrote on the MB portal that the American aid was meaningless because it served the U.S., which had used it to prompt the military to stage a coup against the legitimate MB rule: "When you find that American politicians speaking of the American aid to Egypt describe it as an 'investment', [you are driven to ask:] what does this expression mean to a country that understands only its own interests? When you find that they insist on continuing direct contacts with the army while skipping over the political leadership brought [to power] by the revolution – does this mean anything to you?

"When you know that the purpose of this ongoing aid is not really importing weapons, but rather maintaining [America's] grip over the conscience and mind of [Egypt's] military commanders, who are tied to it by weapons fees and by mutual visits that they hold in order to become personally acquainted with these commanders and figure out how to control them, how they think, and how they respond during a crisis – does this mean anything to you? When you know that most of this American aid is distributed via paychecks to American clerks working in Cairo whose job is to collect information for the American side – does this mean anything to you?... When you know that this aid was one of the methods of controlling Egypt's military commanders and encouraging them to carry out a military coup, kill thousands of Egyptians, arrest thousands, and harm thousands, when you know all this, then who does this aid benefit? Egypt, or America and Israel?... Is this aid, or is it a curse?"[21]

Endnotes:

[1] As part of the 1979 Egypt-Israel peace accords, in 1982 the U.S. began providing annual aid to Egypt totaling some $2.1. billion: $815 million in economic aid and some $1.3 billion in military aid. The economic aid is mostly used to import goods and produce from the U.S., and to fund projects in various sectors. In 1998, Congress decided to reduce economic aid to Egypt at a rate of 5% a year for 10 years. In 2009, under president George W. Bush, Congress slashed the economic aid by 50%, so that in 2009-2011 it totaled less than $250 million in addition to the military aid. The recent American move from October 9, 2013 froze this sum and also suspended part of the military aid. Al-Watan (Egypt), October 12, 2013.