AND THEY WONDER WHY ARABS HATE US?:

A delay or a cut in $1.3 billion in military aid to Egypt risked breaking existing contracts with American arms manufacturers that could have shut down production lines in the middle of President Obama's re-election campaign and involved significant financial penalties, according to officials involved in the debate.

Since the Pentagon buys weapons for foreign armed forces like Egypt's, the cost of those penalties -- which one senior official said could have reached $2 billion if all sales had been halted -- would have been borne by the American taxpayer, not Egypt's ruling generals.

The companies involved include Lockheed Martin, which is scheduled to ship the first of a batch of 20 new F-16 fighter jets next month, and General Dynamics, which last year signed a $395 million contract to deliver component parts for 125 Abrams M1A1 tanks that are being assembled at a plant in Egypt.

"In large part, there are U.S. jobs that are reliant on the U.S.-Egypt strong military-to-military relationship," a senior State Department official said, speaking on condition of anonymity under rules set by the department. 

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