Bush Disappoints Egypt, Calls Aid Boost Unlikely

Vice President George Bush, citing “very difficult budgetary times” in Washington, disappointed Egyptian officials today by saying it is unlikely that Egypt will receive a much-sought increase in U.S. economic aid.

Bush, his Middle East mission nearing an end without significant achievement, was the bearer of bad news during talks with Egyptian President Hosni Mubarak that focused on Egypt’s severe economic ills.

“I wasn’t in a position to make any commitments on these difficult problems at this point,” Bush said. “I did say that I would discuss them in detail with the President, which I promised him I will do and I will do it.”

No Dramatic Progress

The 2 1/2-hour talks at Kubbah Palace, like Bush’s meetings with other top officials, also covered the search for peace in the Middle East--another crucial area where Bush was unable to report dramatic progress.

Speaking to reporters, he declined to comment on the status of intensified U.S.-mediated efforts to resolve the dispute over Taba, a stretch of Egyptian beach claimed by Israel that has become symbolic of the stalled peace process.

Bush’s spokesman, Marlin M. Fitzwater, said “considerable progress” had been made. But when asked if the outstanding issues could be resolved before Bush leaves the region Tuesday afternoon, Fitzwater replied, “At this point, we still have to be skeptical.”

Even before Bush arrived here, U.S. officials had said the problems confronting Egypt--including a $30-billion foreign debt and a need for hard currency, undermined by the slide in oil prices and a drop in tourism--remained under study by the Administration.

Against that backdrop, however, Egyptian officials indicated that Mubarak, who chose to not appear with Bush after their meeting, wanted firm assurances that help was on the way.

‘Loud and Clear’ Message

Bush praised Mubarak as “a great friend of the United States and said the message he “got loud and clear” was Mubarak’s determination “to find economic solutions that would not further burden the people of Egypt.”

Bush said he also explained that the Administration faced “inordinately complicated budgetary times” because of the restraints of the Gramm-Rudman balanced budget law and he criticized Congress for trying to cut the U.S. foreign aid program.

“I didn’t come here to poor-mouth,” Bush said, “but I think it’s my responsibility to have foreign leaders understand that the United States is facing very difficult budgetary times. And our foreign affairs budget, regrettably, is under fire in the Congress--and I think disproportionately.”