NATION : Trade-Off Forged on Foreign Aid
House and Senate negotiators early today agreed to give President Bush the debt relief he seeks for Egypt but at the same time defied the President by slashing aid to El Salvador.
After an all-night and often stormy bargaining session, the two sides set up a difficult choice for Bush: swallow a 50% cut in military aid to El Salvador or lose his bid to have Egypt’s $6.7 billion in past military debt forgiven.
Both provisions are part of a $15.5-billion foreign-aid bill for the fiscal year that began Oct. 1. The bill covers economic and military support for U.S. friends and allies around the world.
The erasure of Egypt’s debt, intended to reward Cairo for its leadership in the Arab response in the Persian Gulf crisis, was offered as a powerful incentive for Bush to accept the package.
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