The Cable

Clinton waives restrictions on U.S. aid to Egypt

Secretary of State Hillary Clinton has decided to use a national security waiver to allow over $1.5 billion of U.S. aid to Egypt, bypassing Congressional restrictions even while the Egyptian government's assault on NGOs in Cairo continues.

The State Department hadn't planned to announce the waiver decision today. "We're still expecting a decision this week, but she hasn't made it yet," State Department spokeswoman Victoria Nuland said at Thursday's press briefing. But apparently Clinton had decided, because Senate Appropriations State and Foreign Ops Subcommittee Chairman Patrick Leahy (D-VT), the author of the restrictions, got a call from the State Department today notifying him of the waiver. In a statement Thursday afternoon, he announced the waiver and criticized Clinton's choice.

"I am disappointed by this decision.  I know Secretary Clinton wants the democratic transition in Egypt to succeed, but by waiving the conditions we send a contradictory message," Leahy said. "The Egyptian military should be defending fundamental freedoms and the rule of law, not harassing and arresting those who are working for democracy. They should end trials of civilians in military courts and fully repeal the Emergency Law, and our policy should not equivocate on these key reforms."

Leahy's office has been urging Clinton not to use the waiver authority that Leahy himself added to the most recent appropriations bill. Now that the waiver has been exercised, Leahy is arguing that, just because the restrictions on the aid have been removed, that doesn't mean the U.S. government necessarily has to deliver the aid -- at least not all of it up front.

"Now that Secretary Clinton has decided to use the law's waiver authority, she should use the flexibility the law provides and release no more taxpayer funds than is demonstrably necessary, withholding the rest in the Treasury pending further progress in the transition to democracy," said Leahy.

We were told by multiple Congressional sources that the State Department is considering delaying part of the $1.3 billion of military aid and most of the $250 million in economic aid, at least for a while. The Pentagon has been urging Clinton to release some of the military aid because existing contracts with U.S. defense firms were dependent on the funds, multiple Congressional aides said.

Leahy's House counterpart, House Appropriations State and Foreign Ops Subcommittee Chairwoman Kay Granger (R-TX), also came out against Clinton's decision to waive the restrictions today and said that she had been told it was in fact a partial waiver.

"I am disappointed by the timing of the Secretary's decision to issue a partial waiver of restrictions on FMF funds for Egypt while the Egyptian government's transition is ongoing," Granger said in a statement to The Cable. "The State Department needs to make the case that waiving the conditions is in the national security interest of the United States. I expect the Secretary to follow the law and consult the Appropriations Committee before any funds are transferred."

Critics of providing further military aid to the Cairo government have raised concerns over the actions of the Supreme Council of the Armed Forces (SCAF), which allegedly played a role in the December raids on several NGOs in Cairo, including three funded by the United States: the International Republican Institute, the National Democratic Institute, and Freedom House.

A number of Americans who worked for NGOs in Egypt were temporarily banned from leaving the country and charged with crimes, but they were eventually allowed to depart earlier this month. Prosecutions against both the foreign workers and the local staffs of the NGOs continue.

The non-military aid is under particular scrutiny because it would be given largely to the Egyptian Ministry of International Cooperation, which is run by Fayza Abul Naga, the official who is suspected to have played a lead role in the raids and the prosecutions.

"The decision to waive the conditions, partially or in full, on military aid sends the wrong message to the Egyptian government -- that U.S. taxpayers will subsidize the Egyptian military while it continues to oversee the crackdown on civil society and to commit human rights abuses," said David Kramer, president of Freedom House. "A resumption of military aid at this point also sends the wrong message to the Egyptian people -- that we care only about American NGO workers, not about the aspirations of the Egyptian people to build democracy."

Stephen McInerney, executive director of the Project on Middle East Democracy, agreed with that assessment. The announcement of the waiver, he said, was "extremely disappointing, particularly as Egyptian and American organizations working to support Egypt's transition to democracy remain very much under threat."

The restrictions in the bill were conditioned on Clinton certifying that the Egyptian military is making progress on the transition to democracy, and that the Egyptian government is allowing freedom of expression and assembly. McInerney said the United States can still hold Egypt accountable for those promises.

"I very much hope, as Senator Leahy has expressed, that the administration will still elect to delay the disbursement of the majority of the fiscal year 2012 funds to Egypt's military until further progress in Egypt's transition to democratic civilian rule has been achieved," he said.

Not all senior lawmakers and officials connected with the issue are so eager to cut off U.S. funding to the Egyptian government. Senate Armed Services Committee ranking Republican John McCain (R-AZ), the chairman of IRI, has been deeply involved in the issue and traveled to Egypt in the midst of the crisis.

He told The Cable in an interview that the aid served as a valuable form of influence that the United States must use carefully.

"We've got to weigh all the aspects of this issue, it's very complicated and complex. We want to be on the same page as the administration," he said. "In general, I think its two steps forward and one step back in Egypt. But there's also the overall issue of the delicate political situation in Egypt today."

Senate Foreign Relations Middle East Subcommittee Chairman Bob Casey (D-PA) told The Cable that the issue wasn't black and white, and that there should be a way to provide some aid while still keeping the pressure on Egypt to continue reforms.

"We've got to have a measure of accountability. But I think the idea of cutting off aid doesn't make sense," Casey said. "We just have to figure out a better way to make the aid conditional based on those measures of accountability, and I think we can achieve that. I think, in this case, it's a mistake to take an either/or approach."

UPDATE: Read Nuland's full Friday statement on the waivers after the jump:

Today, Secretary Clinton has certified to Congress that Egypt is meeting its obligations under its Peace Treaty with Israel. The Secretary has also waived legislative conditions related to Egypt’s democratic transition, on the basis of America’s national security interests, allowing for the continued flow of Foreign Military Financing to Egypt. These decisions reflect America’s over-arching goal: to maintain our strategic partnership with an Egypt made stronger and more stable by a successful transition to democracy.

Egypt has made significant progress toward democracy in the last 15 months, including: free and fair parliamentary elections and the transfer of legislative authority to the new People’s Assembly, and a date announced for complete transition to civilian leadership. However, Egypt’s transition to democracy is not yet complete, and more work remains to protect universal rights and freedoms. The Egyptian people themselves have made this clear to their own leaders.

The Secretary’s decision to waive is also designed to demonstrate our strong support for Egypt’s enduring role as a security partner and leader in promoting regional stability and peace. Egypt has maintained thirty-plus years of peace with Israel. It contributes to efforts to stop proliferation and arms smuggling and facilitates missions from Afghanistan to counterterrorism in the Horn of Africa.

We are committed to supporting the Egyptian people as they strive for the dignity, opportunity, rights and freedoms for which they have already sacrificed so much. That includes protection for civil society and NGOs, which have a critical role to play in building Egypt’s democracy. We remain deeply concerned regarding the trials of civil society activists—non-Egyptians and Egyptians alike—and have raised these concerns at the highest levels, urging an end to harassment.

The political transition underway is bringing about a new, more democratic Egypt. As this process continues, we look forward to engaging with Egyptians on how we can best support and advance the interests we share. We will, of course, consult closely with the Congress about these issues.

Egyptians are living through one of the most remarkable periods of their thousands of years of history. Today we reaffirm our support for Egypt, for its historic accomplishments to date, for the democratic journey it is on and for our enduring partnership.


Mark Wilson/Getty Images

The Cable

Terrorist group’s supporters throw party in U.S. Congress

It's not every day that groups supporting a State Department-listed foreign terrorist organization hold a party in the U.S. Congress, but that's exactly what happened today when the friends of the Mujahedeen e-Khalq (MEK) threw their Nowruz party in the hearing room of the House Foreign Affairs Committee.

"Members of Congress will join Iranian Americans in wishing the Iranian people a Happy Nowrouz and address the humanitarian rights of Iran's main opposition in Camp Ashraf and Camp Liberty, in Iraq," reads the flyer for the party, which was held Thursday at the Rayburn building in room 2172, where the foreign affairs committee holds all of its public events.

The flyer says that the event is sponsored by "Iranian American communities" from around the United States, but the mention of Camp Ashraf and Camp Liberty is a clear reference to the MEK, a group designated by the State Department as a foreign terrorist organization that has about 3,000 members living in the secretive Ashraf compound in Iraq.

The U.N. and the State Department are working to move them to Camp Liberty, a former U.S. military base near the Baghdad airport, but the MEK is resisting that move, and has enlisted its  many supporters in the United States to decry the conditions at the former military base. Former New York City mayor Rudy Giuliani even went so far as to call Camp Liberty a "concentration camp."

House Foreign Affairs Chairwoman Ileana Ros-Lehtinen (R-FL) spoke at the event and discussed human rights in Iran, but did not mention the MEK by name. Former Homeland Security secretary and Pennsylvania Governor Tom Ridge, a paid advocate of the MEK, also spoke.

"The event was not sponsored by the MEK," Ros-Lehtinen's spokesperson Brad Goehner told The Cable.  "The room was requested by the Iranian-American Society of South Florida and sponsored by the Iranian-American communities of 39 cities for an event commemorating the Iranian New Year. Space in Congressional office buildings is routinely made available to organizations wishing to hold events on issues important to members of Congress."

The flyer doesn't say the party is being thrown by or for the MEK, and aides who attended told The Cable that there were no MEK signs or banners at the event, as one usually sees wherever the MEK is camped out.

That could be a result of the revelation that the Treasury Department's counterterrorism unit has issued a subpoena to former Pennsylvania Governor Ed Rendell for records related to his paid advocacy of the MEK, as part of an investigation into the web of organizations that support the terrorist group.

There is a long list of Iranian-American organizations that fund pro-MEK events and pay speakers fees to MEK supporters. Many of these organizations - such as the "Global Initiative for Democracy, whose homepage is entirely devoted to the MEK's concerns and who hosted an MEK conference in January -- seem to have no other function other than to advocate for the MEK, and the actual sources of their money is unclear.

Receiving funding from a terrorist organization or even providing it with "material support," which could include advocacy, is a crime.

The campaign by the MEK's supporters to disparage Camp Liberty and lobby for the MEK's removal from the State Department's list of foreign terrorist organizations has included huge rallies outside the State Department, massive sit-ins at Congressional hearings, and an ongoing vigil outside the State Department's C Street entrance. 

Those supporters, many of them paid, include Giuliani, Rendell, Vermont Governor Howard Dean, Harvard Law Professor Alan Dershowitz. John Lewis (D-GA), former FBI Director Louis Freeh, former Sen. Robert Torricelli, former Rep. Patrick Kennedy, former National Security Advisor Gen. James Jones, former Joint Chiefs Chairman Gen. Richard Myers, former White House Chief of Staff Andy Card, retired Gen. Wesley Clark, former Rep. Lee Hamilton, former CIA Director Porter Goss, senior advisor to the Romney campaign Mitchell Reiss, retired Gen. Anthony Zinni, and former Sen. Evan Bayh.

Congressional aides attended the event on Thursday in the hearing room both out of curiosity and hunger for free food. But multiple aides told The Cable the event was bizarre, even by Congressional standards.

"Looks like you just have to be the ‘right' terrorist organization to hold a fancy party in the halls and hearing rooms of Congress," one House aide told The Cable. "Hope everyone who ate their kabobs doesn't get hit with material support subpoenas."