Obama Administration Rules Out Suspension of Aid to Egypt in Near Term

The White House on Monday ruled out an immediate suspension of American assistance to Egypt after the military seized power. It hoped to use its financial leverage to press for the prompt restoration of a democratic government and to head off further violence.

President Obama's spokesman said it would not be in “the best interests” of the United States right now to cut off the $1.5 billion in annual aid given to Egypt. But he made clear that over the long term, financial assistance would depend on whether the military eased up on its violent crackdown and paved the way for new elections.

“We are going to examine this and monitor this and take the time necessary in making the determination in a manner that's consistent with our policy objectives and our national security interests,” the spokesman, Jay Carney, told reporters. “But we do not believe that it is in our interests to make a precipitous decision or determination to change our assistance program right away.”

The decision against cutting off any aid at the moment despite a law banning financial assistance after military ousters reflects a calculation by Mr. Obama that he needs to work with the Egyptian armed forces. Egypt has been the second-largest recipient of American aid, behind Israel, since 1979, as a reward and incentive for its peace with the Jewish nation, and the military continues to support that treaty.

Aaron David Miller, a former Middle East peace negotiator now at the Woodrow Wilson International Center for Scholars, said that barring a more drastic retreat by the military from civilian rule, Mr. Obama “will go to extreme lengths to avoid a cutoff.”

“Fact is, the administration is in an investment trap in Egypt,” Dr. Miller added. “Both our interests and our values - hope for a democratic transition - demand a close working relationship with the generals.”

Mr. Obama said nothing about Egypt on Monday. Beyond a written statement, he has remained silent about the unfolding crisis since President Mohamed Morsi's ouster last week. In his only public appearance of the day, Mr. Obama talked about making government more efficient, without mentioning the drama in the country that was once considered the most important American ally in the Arab world.

The Foreign Assistance Act says no aid other than that for democracy promotion can go to “any country whose duly elected head of government is deposed by military coup d'état” or where the “the military plays a decisive role” in such an action. The law allows no presidential waiver, and it says that aid cannot be restored until “a democratically elected government has taken office.” The administration invoked it as recently as last year after a coup in Mali.

Egyptian officials said Mr. Morsi's ouster was not a military coup because it had come in response to protesters. Mr. Carney cited that argument on Monday. He noted that “tens of millions of Egyptians have legitimate grievances with President Morsi's undemocratic form of government, governance, and they do not believe that this was a coup. Indeed, they were demanding a new government.”

A few voices in Washington have called for a cutoff in aid, including Senators John McCain, Republican of Arizona, and Patrick J. Leahy, Democrat of Vermont. Senator Carl Levin, the Michigan Democrat who is chairman of the Armed Services Committee, said Monday that the United States should suspend aid until Egypt had set a formal date for parliamentary elections and set up a constitutional process, according to a spokeswoman.

Speaker John A. Boehner of Ohio disagreed. “I think their military, on behalf of the citizens, did what they had to do in terms of replacing the elected president,” Mr. Boehner said on Monday. “But anything further, I think we'll wait for consultations with the administration on how we would move ahead.”