Egypt's ruling generals play risky game with US

CAIRO — Egypt's ruling generals are playing a risky game of brinkmanship by cracking down on American nonprofit groups that promote democracy, threatening a relationship with Washington that has brought the military billions of dollars in aid over the past three decades.

The generals may be betting the U.S. cannot afford to cut relations with Egypt — a cornerstone of American Mideast policy. But the ruling military council may also fear it has much more than foreign aid to lose if it fully embraces a democratic transition that could bring civilian oversight of its substantial financial assets and curb its long-standing domination of politics.

Egypt on Sunday referred 19 Americans, including the son of U.S. Transportation Secretary Ray LaHood, and 24 other employees of pro-democracy nonprofit groups to trial before a criminal court on accusations they illegally used foreign funds to foment unrest in the country. The referral came one day after U.S. Secretary of State Hillary Rodham Clinton warned Egypt that failure to resolve the dispute may lead to the loss of American aid.

"I think we have to have every aspect of our relationship with Egypt examined until these people are removed from any indictment and allowed to leave or do whatever they need to do," Sen. John McCain, R-Ariz., the top Republican on the Senate Armed Services Committee, said in Washington.

The depth of the tensions was evident when an Egyptian government delegation abruptly canceled meetings in Washington with U.S. lawmakers set for Monday and Tuesday.

"We understand that we have a real strategic interest in keeping good relations with the Egyptians. It's the biggest country in the Arab world," said Sen. Joe Lieberman, I-Conn. "But on the other hand, we can't just sit back when Americans get charged and potentially incarcerated for what are trumped up charges, ridiculous," said Lieberman, who together with McCain spoke to reporters after a meeting with the Israeli foreign minister.

Senate Foreign Relations Committee Chairman John Kerry, D-Mass., admonished the Egyptians, calling their referral to trial a "slap in the face to Americans who have supported Egypt for decades and to Egyptian individuals and NGOs who have put their futures on the line for a more democratic Egypt."

Egypt and the United States have been close allies for more than three decades. But Cairo's campaign against the pro-democracy groups could seriously damage relations with far-reaching ramifications in a region already shaken by the political realignments arising from Arab Spring revolts.