U.S. EASES RULES ON AID TO EGYPT

WASHINGTON [MENL] -- The United States has significantly eased requirements
for aid to Egypt.
Officials said the U.S. Agency for International Development has agreed to
ease conditions for more than $1 billion in funding to help Egypt's economy
and social services. They said the State Department has sought to ensure
this funding despite Egypt's longtime failure to fulfill the terms of
assistance.

AID has accepted a State Department recommendation that would facilitate the
relay of $800 million
to Egypt under the Cash Transfer Program -- meant to help the economy as
well as health, education and environment -- over the next three years,
officials said. They said the United States has shelved hundreds of millions
of dollars in U.S. civilian aid to Egypt because it failed to carry out
economic and civil reforms.

In July 2005, the Government Accountability Office detailed the U.S. effort
to ease Egyptian aid requirements. The report by the congressional watchdog
was ordered by House International Relations Committee chairman Rep. Henry
Hyde amid questions regarding the feasibility of U.S. aid to Cairo.
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