U.S. takes tougher line with Egypt but denies aid cut

WASHINGTON, (Reuters) – The United States yesterday adopted a harder line toward Egypt’s military-backed government, stressing that its bloody crackdown on protesters could influence U.S. aid to Cairo but denying reports that it has suspended the assistance.

The army’s clampdown on supporters of deposed Islamist President Mohamed Mursi over the past week, the “suspicious deaths” of 37 prisoners in custody and the detention of Muslim Brotherhood leader Mohamed Badie yesterday have worsened relations between Washington and Egypt’s new rulers.

President Barack Obama convened a meeting of his national security team on Tuesday to discuss Egypt and the review of American aid to the country. U.S. officials said they do not expect any immediate decision about the aid.

At issue is the future of about $1.23 billion in U.S. military assistance and about $241 million in economic aid to Egypt, a close U.S. ally for three decades until long-time authoritarian ruler Hosni Mubarak was toppled in 2011 after a popular revolt.

The White House, State Department and Pentagon all disputed a statement by a U.S. senator’s office that the U.S. government had decided for now to stop funding to Egypt’s military.

But officials made clear that further action, beyond Obama’s cancellation of joint U.S.-Egyptian military exercises and a halt to deliveries of four F-16 fighter jets, is not off the table.

Obama and his aides have been trying to navigate a tricky path on Egypt, expressing displeasure with the army’s actions while not entirely breaking a relationship crucial to U.S. security interests in the Middle East.

“Our aid and assistance relationship with Egypt is under a review, but it has not been cut off,” White House spokesman Josh Earnest said. “A decision to cut off aid would be announced, if it were to be announced, after that review has been completed.”

Earnest made clear the United States was displeased the detention of Badie.

“This is just the latest in a series of actions the Egyptian government has taken that doesn’t reflect their commitment to an inclusive political process, to respect for basic human rights like the right to protest peacefully,” Earnest told reporters.

“Continued violations of basic human rights don’t make the transfer of that aid more likely,” he said.