Kerry encourages investment in Egypt, but no military aid

PanARMENIAN.Net - Secretary of State John Kerry delivered words of encouragement Friday, March 13, for Egypt's efforts to attract greater foreign investment, but no new military assistance as demanded by the country's president, the Associated Press reports.

In the Red Sea resort of Sharm el-Sheikh, America's top diplomat said investment was needed to restore confidence in Egypt and provide stability for the region.

"This part of the world is blessed with a stunning amount of commercial potential," Kerry said at an American Chamber of Commerce event. He said the U.S., whose companies invested $2 billion in Egypt last year, stood ready to help.

Kerry was to attend an Egyptian economic conference later Friday and meet with Egyptian President Abdel-Fattah el-Sissi, who has been clamoring for U.S. tanks, planes and other materiel held up since the military's 2013 coup.

El-Sissi said earlier this week the logjam was creating the impression that the U.S. isn't standing by the Egyptians as they battle the Islamic State and other extremists. The country's need for weapons and equipment is "dire," he told Fox News.

Kerry had hoped to announce on his three-day trip to Egypt the delivery of F16 fighter jets, according to U.S. officials, who weren't authorized to speak publicly on internal deliberations and demanded anonymity.

But no path forward has emerged from multiple White House discussions in recent weeks over funds which were suspended 21 months ago when el-Sissi, then military chief, overthrew Egypt's first democratically elected leader, Islamist President Mohammed Morsi.

Officials said the focus of Kerry's trip wasn't on military matters but rather the investment conference. Top executives from General Electric, Microsoft and other U.S. companies attended.

Egypt's economy was rocked after Arab Spring protesters chased Mubarak from power in 2011. El-Sissi has sought to make the county more conducive for investment and is reforming Egypt's tax code, among other efforts to spur renewed economic vitality.

Kerry also is meeting Friday with Palestinian President Mahmoud Abbas and Jordan's King Abdullah II. From Egypt, he will travel to Switzerland Sunday for another round of nuclear talks with Iran. Negotiators hope to reach a framework deal by month's end.