Egypt: Security Assistance

Background: The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided by deserts to the east and west, allowed for the development of one of the world's great civilizations. A unified kingdom arose circa 3200 B.C. and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty fell to the Persians in 341 B.C., who in turn were replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the Arabic language in the 7th century and who ruled for the next six centuries. A local military caste, the Mamluks took control about 1250 and continued to govern after the conquest of Egypt by the Ottoman Turks in 1517. Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub, but also fell heavily into debt. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914. Partially independent from the UK in 1922, Egypt acquired full sovereignty following World War II. The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society. The government has struggled to ready the economy for the new millennium through economic reform and massive investment in communications and physical infrastructure. [CIA World Factbook]

Egypt: Security Assistance
($ in thousands)Account FY 2005 Actual FY 2006 Estimate FY 2007 Request

Account	FY 2005 Actual	FY 2006 Estimates	FY 2007 Request
FMF	1,289,600	1,287,000	1,300,00
IMET	1,264	1,188	1,235

Egypt is the largest and most populous country in the Arab world and it is one of the most important allies of the United States. Egypt�s support for U.S. initiatives � whether multilateral or bilateral and whether political, strategic, military, or economic � is critical. In the global war on terrorism, Egypt actively aids the United States with public support, logistical and intelligence assistance, financial cooperation, and diplomatic coordination. Egypt�s already crucial role in Middle East peace efforts has been enhanced by its role in Israeli disengagement from Gaza. Egypt�s extensive logistics support during the war in Iraq was critical to U.S. success and its post-war efforts to reintegrate Iraq into the Arab and world community are equally important. As a moderating influence, Egypt is pivotal to U.S. interests in the Arab, Muslim, and developing worlds, as well as geographically key in the Middle East, Africa, and the Mediterranean basin. An Egypt that is stable and that views the United States as a friendly ally will continue to be vital to U.S. national security interests for the foreseeable future. It is the U.S. view, however, that Egyptian stability would be well served by a political reform process that leads to greater democracy and transparent governance. What appeared in early 2005 to be positive steps towards political liberalization in Egypt were undermined by less than free and fair elections in the latter part of the year. U.S. assistance to Egypt will continue against this backdrop, with political reform being a priority objective of U.S. policy and development aid.

The FY 2007 request of $1.3 billion for Egypt in Foreign Military Financing (FMF) will continue to support a modern, well-trained Egyptian military helping to ensure stability in the Middle East and North Africa and striving to achieve increased interoperability with U.S. forces. FMF support for Egypt will continue to advance U.S. foreign policy goals in the region and further enable Egyptian Armed Forces to participate as coalition partners in military operations around the world. Military aid to Egypt facilitates U.S. access to the Suez Canal and vital overflight routes used to support U.S. forces in Southwest Asia. Egyptian support for international peacekeeping operations and the Global War on Terrorism have proven time and again the validity of our FMF arrangement. Because Egypt�s five-year plan currently calls for no new large acquisitions, most funding will go to follow-on support requirements and existing cash flow obligations.

The $1.2 million requested in FY 2007 International Military Education and Training (IMET) funds will continue to play a critical role in the professional and technical development and training of the Egyptian military forces. These funds allow Egypt to send students to both Technical and Professional Military Education (PME) courses. These courses include, but are not limited to, U.S. service war colleges, command and staff colleges, and officer and non-commissioned officer entry-level courses. Egyptian attendance helps foster one-to-one relationships that improve U.S.-Egyptian military interoperability and coordination and serve U.S. regional interests. IMET-funded maintenance, logistics and specialist training provides Egyptian military personnel with the skills needed to maintain Egypt�s stocks of U.S. furnished equipment, and enhances their value as a training and coalition partner. In FY 2007, Egypt will be eligible to receive Excess Defense Articles (EDA) on a grant basis under Section 516 of the Foreign Assistance Act;, which enables Egypt to procure critically needed U.S. equipment and spare parts for its existing U.S.-origin inventory.

Commercial defense trade is yet another avenue by which the U.S. Government can help friends and allies meet their legitimate defense needs, and foster regional stability, deter aggression, and promote the peaceful resolution of disputes. On the legal basis of the Arms Export Control Act, and with the overall intention of safeguarding U.S. national security and furthering U.S. foreign policy objectives, billions of dollars of defense articles and services are authorized for export around the world every year. In fiscal year 2005, the Department of State authorized the export of defense articles and services valued at $280,703,482 for Egypt.

To access the full report from which the figures were taken, and to learn more about the offices that implement the regulations pertaining to commercial defense trade, please visit the Directorate of Defense Trade Controls.