U.S. Aid to Egypt Assessed

The Carter Administration’s optimistic reports of Egypt’s economic condition that encourages continuing U.S. assistance at record levels and its justification to provide the Cairo government with the latest models of aircraft and tanks in America’s arsenal, were vigorously challenged today by members of the House Foreign Affairs Committee’s Subcommittee on the Middle East.

Testifying at a subcommittee hearing, two of the Administration’s chief Middle East specialists, Assistant Secretary of State Harold Saunders and Joseph C. Wheeler, assistant administrator of the Agency for International Development (AID), asked that Congress approve the AID’s “largest and most critical development undertaking.”

The testimony also brought out that the U.S. has agreed “in principle” to provide an unspecified number of F-16 aircraft and M-60 tanks to Egypt. In addition, a Defense Department official, Richard Violeto, of its Security Assistance Agency, acknowledged that the U.S. has agreed to support weapons production in Egypt by an Arab consortium. A detailed list will be provided to Congress.

FUEL FOR PLANNED NUCLEAR PLANT

Saunders said the U.S. has agreed to provide fuel for a planned Egyptian nuclear power plant but has not yet decided whether to finance the plant. Wheeler testified that AID programs for Egypt in the coming fiscal year that begins October 1 will be $750 million in economic supporting assistance and $274 million in Food for peace, and a final $100 million in supplemental economic assistance under the Camp David accords. Comparatively, Israel is earmarked for $785 million in supporting assistance funds and only $1 million in Food for Peace, or $340 million less than Egypt is to get in economic aid.

In addition, Egypt is to get an extra $350 million to complement the $1.5 billion in credits for military equipment agreed to after Camp David. “Other donors who participate with us in the Egyptian Consultative Group are providing about $1 billion in additional development assistance each year,” Wheeler said. The other donors include institutions such as the World Bank.

Wheeler, who told Congress a year ago that “a major success story was shaping up in Egypt,” testified today that on his recent visit to that country “a sense of progress is evident from discussions with both government officials and rural villagers.” He said that “Today, the evidence of recovery is substantial.”

Sounders testified that “The top leadership in Egypt is relieving Egypt of the burdens of war and turning attention to economic problems.” He said that was why Egypt “turned away from the Soviet Union” to make peace with Israel.” We are now seeing these things come together,” he said, adding that it was “a profound historic shift in Egypt’s economic, social, political and military fields.”

But the subcommittee, led by its chairman, Rep. Lee Hamilton (D. Ind.), challenged the tenor of the assertions by the Administration officials that provided the basis for the more than $3.5 billion in U.S. assistance for Egypt during this year alone.

Trobing Egypt’s agricultural problems and rapid population growth, Hamilton reminded Wheeler that he had said last week that there was no malnutrition and hunger in Egypt. “What then is the policy basis of providing Egypt with 40 percent of the total U.S. Food for Peace program when the need across the world is so desperate?” he asked. When Wheeler acknowledged that “political requirements” is the basis, Hamilton retorted, “When you make decisions like that you are denying food to people who need it more.” Wheeler replied, “I appreciate that.”

With respect to U.S. military aid to Egypt, Rep. Stephen Solarz (D.NY) asked Saunders “What is the relationship of the character of the threat and the sophistication of the weapons” the U.S. is committed to providing. When Saunders demurred, saying that he had told the Senate in closed session, Hamilton said “It should be addressed in open session” and asked for a “general response.”

Saunders said “Egypt may be potentially encircled by Soviet-armed Libya and subversion.” He did not name any other country that may threaten Egypt. When Solarz asked if “The grove threat” to Egypt was “external invasion or internal upheaval,” Saunders replied that “Like Israel, Egypt has a tremendous economic burden,” but required a military program.