As Bush visits, U.S. and Egypt grow farther apart

By Will Rasmussen

CAIRO (Reuters) - The brevity of President George W. Bush's touchdown in Egypt this week, at the tail end of his Middle East tour, reflects the diminishing importance of the relationship to both Cairo and Washington.

Bush is scheduled to spend about four hours on Wednesday in Egypt, once the cornerstone of Washington's Arab policy and a major recipient of U.S. aid money for the past 30 years.

But the real value of the U.S. aid package has been falling yearly, reducing U.S. leverage over the Cairo government.

Egypt's economy is booming, petrodollars are pouring in from the Gulf and some Egyptians are questioning whether the aid is worth any concessions to the United States.

"You have a juncture where the benefits that have accrued to Egypt because of the relationship have diminished considerably over time," said Shibley Telhami, Anwar Sadat Professor at the University of Maryland.

Egypt, in turn, is no longer as important to the United States as a mediator in the Arab-Israeli conflict and as a logistical gateway for U.S. forces to the Gulf.

The United States provided about $2 billion a year to Egypt for years after it signed the 1979 peace treaty with Israel.

The U.S. aid represented about 1.4 percent of Egypt's gross domestic product in 2006, compared to about 10 percent in 1980.