Clinton warns aid to Egypt could be halted

MUNICH -- U.S. Secretary of State Hillary Rodham Clinton on Saturday issued a new warning to Egypt that the failure to resolve a bitter dispute over the status of nongovernmental pro-democracy groups may lead to the loss of U.S. aid to the country.

Clinton met Egyptian Foreign Minister Mohammed Amr at an international security conference in Munich and repeated that message, which had already been transmitted to officials in Cairo. The United States is due to give Egypt $1.3 billion in military assistance and $250 million in economic aid in 2012.

"We are very clear that there are problems that arise from this situation that can impact all the rest of our relationship with Egypt," Clinton told reporters. "We do not want that."

Under U.S. law, Clinton must certify to Congress that Egypt is meeting certain requirements, including enacting democratic and rule of law reforms, for the assistance to be released. -- AP