"U.S.-Egyptian relations are tied to maintaining regional stability, improving bilateral relations focused on Egyptian economic development and military cooperation, developing Egypt's democracy, sustaining the March 1979 Egyptian-Israeli peace treaty, and continuing U.S. foreign assistance to Egypt. Experience gained from Egyptian-U.S. joint military exercises proved valuable in easing coordination during the February 1991 Desert Storm operation reversing Iraqi aggression against Kuwait. Egypt is a leader and moderating influence among many Arab, African, Islamic, and Third World states. Among the current issues in U.S.-Egyptian relations are the shared concerns over the terrorist attacks against Egyptian police, religious, government, and tourist facilities, and what those attacks may signal for Egypt's domestic stability. The two nations may disagree over Egypt's interpretation of applying human rights practices to Islamic terrorists. The two countries disagree over the speed and depth, but not the need for some of Egypt's economic reforms. Egypt and the United States agree on the importance of the Egyptian-Israeli peace treaty, the need to continue current Arab-Israel peace talks, and the need for regional stability. The two nations agree on Egypt's determination to introduce democratic reforms to Egypt. The United States has provided Egypt with an annual average of over $2 billion in economic and military foreign assistance since 1979. The United States will reduce Economic Support Funds (ESF) to about $400 million per year by 2008 in keeping with a plan to reduce aid to Israel. The Administration requested $655 million in economic grants and $1.3 billion in military grants for FY2002 for Egypt."
CRS Issue Brief for Congress, IB93087
United States Department of State, Foreign Press Center: http://fpc.state.gov/