The U.S. Holds The Aid Card, Yet Egypt Still Trumps The ouster of Mohammed Morsi puts the U.S. in an awkward position. As the administration considers its next steps, analysts are quick to point out the many missteps in U.S. policy toward Egypt up to now.

The U.S. Holds The Aid Card, Yet Egypt Still Trumps

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The ouster of Mohamed Morsi puts the United States in an awkward position. By law, the administration must cut off aid to a country after a military coup, but Egypt's military has been a key to regional stability. As NPR's Michele Kelemen reports, the administration has come in for sharp criticism on how it's handling the situation.

MICHELE KELEMEN, BYLINE: As the administration considers its next steps, analysts are quick to point out the many missteps in U.S. policy toward Egypt up to now.

TAMARA WITTES: The United States has managed to alienate just about every political actor in Egypt.

KELEMEN: Tamara Wittes is the director of the Saban Center for Middle East Policy at the Brookings Institution. She says the secular politicians and activists saw the administration trying too hard to work with Mohamed Morsi's Islamist government.

WITTES: Then, of course, when push came to shove, Morsi found the U.S. was not going to step in on his behalf and so the Muslim Brotherhood feels betrayed by Washington. The last relationship the United States has left with Egypt's centers of power is with the Egyptian military.

KELEMEN: But there too the U.S. found it had little leverage, says Michele Dunne director of the Rafik Hariri Center for the Middle East at the Atlantic Council.

MICHELE DUNNE: The United States sent a signal that it didn't want to see a military coup and the military ignored the United States and went ahead and did it anyway.

KELEMEN: The U.S. gives Egypt $1.3 billion a year, much of it in aid to the military. That should be used as leverage but the U.S. has failed to play the aid card in the past, Dunne says, and Egyptian generals are well aware of that.

DUNNE: The Egyptian military knows this assistance is purely about security matters and that it has nothing to do with how the country is run.

KELEMEN: In recent years, Congress has imposed conditions on U.S. aid to Egypt to ensure that the country stays on the path of democracy. But Secretary of State John Kerry and Hillary Clinton before him waived those conditions to keep aid flowing. And Dunne points out that the latest waiver came just in May, at a particularly bad time, as tensions were building among political factions in Egypt.

DUNNE: The United States really misdiagnosed what was going on in Egypt. They didn't criticize Morsi when he took some very undemocratic moves, extremely controversial, that eventually caused this enormous wave of dissent.

KELEMEN: Now, the aid question is back in the news again because U.S. law clearly states that aid must be cut in the case of a military coup, and the administration can't waive that provision. The White House has so far stopped short of calling it a coup and State Department lawyers could take weeks to decide if it was. But the administration did release a statement saying it is deeply concerned by the decision of the Egyptian armed forces to remove President Morsi and suspend the constitution. Tamara Wittes of the Brookings Institution argues the U.S. should suspend aid to give the Egyptian military a signal that it needs to move quickly to hold new elections.

WITTES: That's why that provision in the law exists, to give an incentive to governments that come about through a coup to get back to democratic elections and democratic rule.

KELEMEN: Wittes argues that instead of looking for a way to get around the aid cut-off, U.S. diplomats should use this as leverage to press the Egyptian army for a clear timetable to restore democratic rule and to stop its crackdown on the Muslim Brotherhood. Michele Kelemen, NPR News, Washington.

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