U.S. Studying How It Can Help Egypt Revitalize Its Arms Industry

The State Department said today that the United States was studying how it can help Egypt revitalize its arms industry. Department spokesman Tom Reston said that no decision has been made yet on what the U.S. will do and all proposals will have to be discussed with Congress.

Reston said that William Perry, director of the Pentagon’s Research Bureau, has recently returned from Cairo where he discussed with the Egyptians what assistance was needed for the organization and operation of that country’s defense industry.

The proposed U.S. assistance is within the context of the Carter Administration’s long-held policy, Reston stressed, and would be aimed at improving Egypt’s legitimate defense needs. “We have been cooperating with Egypt in a number of fields over the last several years with broad support from Congress to pursue the peace process and advance the economic development of Egypt, he said.

“We have allocated a $1.9 billion program of military assistance to help Egypt meet its legitimate defense needs,” Reston added. “We also explored whether we could appropriately contribute to Egypt’s industrial capacity and upgrade its military equipment as well as to produce such equipment.” Reston stated that while no decision has been made. “We would be prepared, in consultation with Congress, to provide some advice and assistance that Egypt may require in mutually agreed areas.”

In a related Mideast development, West German Foreign Minister Hans-Dietrich Genscher met with President Carter today at the White House and then had lunch with Secretary of State Cyrus Vance. There was no immediate comment on the meeting, although Reston said he assumed they discussed the Mideast along with other international developments. Diplomatic sources said yesterday that West Germany is making an effort to start peace talks between the Arabs and Israel and is offering its good offices and contacts to get the talks moving.