The House yesterday rejected a $570 million cut in
U.S. military aid to Egypt after Secretary of State
Colin L. Powell issued a last-minute warning to
lawmakers that the action would damage relations with
a close Middle East ally "at a very sensitive moment
in the region."

Although the 287 to 131 vote was lopsided, the
administration and military contractors who sell
U.S.-financed weaponry to Egypt took seriously the
threat of a cut and worked behind the scenes to head
it off.

Before the vote, national security adviser Condoleezza
Rice made calls to some lawmakers, who were also on
notice from arms companies that the shift could result
in job losses in home districts. "It was a full-court
press," said Rep. Tom Lantos (D-Calif.), who offered
the amendment to the $19.4 billion foreign aid bill
for 2005.

His bill would have shifted the military aid to
economic assistance, which he said is "desperately
needed" in Egypt. "The last thing this society [Egypt]
needs is the ultimate in high-tech weaponry," Lantos
said.

The debate brought out highly ambivalent feelings
about Egypt. The House's pro-Israel forces used the
opportunity to vent frustration with the Egyptian
government's role during hostilities between Israel
and the Palestinians. Among those supporting the cut
was House Majority Leader Tom DeLay (R-Tex.), one of
the strongest supporters of Israeli interests in
Congress.

Lawmakers took the floor to rebuke the Egyptian
government for tolerating anti-Semitism, limiting its
cooperation with the United States in the war on
terrorism and failing to prevent gun-smuggling to
militant Palestinian groups.

But Powell and senior lawmakers in both parties warned
that the action would send the wrong signal at a time
when Egypt has begun working closely with Israel to
assure a smooth transition as Israel plans to withdraw
from Gaza.

In a letter to Congress, Powell noted that a
unilateral reduction would weaken the balanced
military aid to Egypt and Israel that is a
"cornerstone" of the 1979 Camp David peace accords. In
2005, Israel and Egypt are set to receive $2.2 billion
and $1.3 billion in grants, respectively, under the
formula.

"Our credibility in this relationship depends to a
great degree upon being a reliable provider of
assistance to the Egyptian military," Powell wrote.

"This puts a finger in the eye of our friends in
Egypt," said Rep. John D. Dingell (D-Mich.)

Jewish House members were divided on the issue. Rep.
Nita M. Lowey (D-N.Y.) questioned why the United
States was providing lavish military assistance to
Egypt even though "it has no real enemies" and its
government tolerates "TV shows that perpetuate
anti-Semitism."

But she said she was reluctantly opposing the aid cut
because of its timing, noting that Egypt has lately
signaled its intention to play a more constructive
Middle East role.

However, Rep. Shelley Berkley (D-Nev.), in backing
Lantos's proposal, said years of U.S. aid to Egypt
have done little to curb anti-Israel rhetoric in the
country's media.

The American Israel Public Affairs Committee (AIPAC),
the principal pro-Israel lobby in the United States,
took no official position on the issue. Earlier in the
day, AIPAC won at least a symbolic victory when it
helped push through the House a resolution that was
critical of a July 9 advisory judgment from the
International Court of Justice holding Israel's
security wall to be illegal. The resolution indicated
that the ruling was a result of improper political
pressure from members of the U.N. General Assembly.
The vote was 361 to 45.

Republican leaders hoped to take a final vote later
yesterday on the underlying foreign aid bill. Tight
budget restrictions forced the House to cut $2 billion
from President Bush's request, but the measure still
provides a record $2.2 billion to fight HIV/AIDS,
malaria and tuberculosis -- nearly $60 million more
than last year.

The president got only half the $2.5 billion he
requested for his signature foreign aid initiative,
the Millennium Challenge Corporation. The corporation
establishes a new way to dispense foreign aid to
countries that qualify by meeting a list of criteria
such as commitment to free-market economies and
democratic institutions.

The bill provides $900 million in aid to Afghanistan,
and continues a waiver that allows continued bilateral
economic assistance to Azerbaijan despite that
country's economic blockage of Armenia.